S&T Bancorp Inc (STBA) 2025 Q3 法說會逐字稿

Welcome to the S&T Bancorp third quarter 2025 conference call. After the management's remarks, there will be a question-and-answer session. Now I would like to turn the call over to Chief Financial Officer Mark Kochvar. Please go ahead.

歡迎參加S&T Bancorp 2025年第三季電話會議。管理階層發言結束後，將進行問答環節。現在我想把電話交給財務長馬克·科赫瓦爾。請繼續。

Great, thank you. Good afternoon, everyone, and thank you for participating in today's earnings call. Before beginning the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors. This statement provides the cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation.

太好了，謝謝。各位下午好，感謝各位參加今天的財報電話會議。在開始演講之前，我想花點時間向大家介紹我們關於前瞻性陳述和風險因素的聲明。本聲明提供了美國證券交易委員會要求對本簡報中可能包含的前瞻性陳述所作的警示性語言。

A copy of the third quarter of 2025 earnings release, as well as this earnings supplement slide deck, can be obtained by clicking on the materials button in the lower right section of your screen. So we'll open up a panel on the right where you can download these items.

點擊螢幕右下角的資料按鈕，即可取得 2025 年第三季財報以及本收益補充投影片。所以我們會打開右側的一個面板，您可以在那裡下載這些項目。

You can also obtain a copy of these materials by visiting our investor relations website atstbankcorp.com. With me today are Chris McCommish, S&T's CEO, and Dave Antolik, S&T's President. I'd now like to turn the program over to Chris.

您也可以造訪我們的投資者關係網站 atstbankcorp.com 以取得這些資料。今天與我一同出席的有 S&T 的執行長 Chris McCommish 和總裁 Dave Antolik。現在我想把節目交給克里斯。

Mark, thank you. And good afternoon everybody. I'm going to begin my comments on page 3 and I welcome all of you to our call, especially our analysts, and we appreciate you being here with us and look forward to your questions.

馬克，謝謝你。大家下午好。我的演講將從第 3 頁開始，歡迎各位參加我們的電話會議，特別是各位分析師，感謝你們的到來，期待你們的提問。

I also want to thank our employees, shareholders, and others listening to the call to our leadership team and employees. I want to thank you for all you do. These results are you, yours, and you should be very proud. Before my remarks on our performance, I want to take a moment to congratulate and thank Christine Treti, our former board chair, for her years of service at S&T.

我還要感謝我們的員工、股東以及其他收聽我們領導團隊和員工演講的人。我想感謝你所做的一切。這些成績都是你自己的，你應該為此感到非常驕傲。在我對我們的業績發表評論之前，我想花一點時間祝賀並感謝我們前董事會主席 Christine Treti 多年來在 S&T 的服務。

As you may be aware, Christine is our new US ambassador to Sweden, a well-deserved appointment in recognition of her years of service to our country. I also want to welcome and congratulate Jeff Grube, another long standing S&T board member, as he takes on the role of lead independent director of our board. We all look forward to working even more closely with Jeff as we move the company forward.

如你所知，克莉絲汀是我們新任的美國駐瑞典大使，這是對她多年來為我國服務的認可，實至名歸。我還要歡迎並祝賀另一位長期擔任S&T董事會成員的傑夫·格魯布(Jeff Grube)擔任我們董事會的首席獨立董事。我們都非常期待與傑夫更緊密地合作，共同推動公司向前發展。

Overall, we feel very good about the quarter as it reflects a lot of the work and strategic focus of our team over the past few years, positioning S&T for long-term success.

總體而言，我們對本季的業績感到非常滿意，因為它反映了我們團隊過去幾年來的努力和策略重點，使S&T能夠取得長期的成功。

You will see that focus in the numbers we discussed today, including first by strategically repositioning our balance sheet over the past couple of years to reduce asset sensitivity. We've enhanced our ability to drive consistent net interest income growth through the interest rate cycle.

您將在我們今天討論的數字中看到這種關注，包括首先在過去幾年中對資產負債表進行策略性調整，以降低資產敏感性。我們提高了在整個利率週期中持續推動淨利息收入成長的能力。

Second, while total deposits ended basically flat at quarter end, our continued investment in our deposit franchise delivered a solid deposit mix with non-interest-bearing deposits representing 28% of total deposits. Additionally, average GDA growth in the quarter.

其次，雖然季度末存款總額基本持平，但我們對存款業務的持續投資實現了穩健的存款結構，其中不計息存款佔存款總額的 28%。此外，季度平均 GDA 成長率。

Was over $50 million versus Q2 helping to drive our net interest margin expansion, which was already at a very healthy level. Last, while we did see an increase in NPAs in the quarter, this was over a very low base, and the final numbers remain in a very manageable range.

與第二季相比，超過 5000 萬美元的成長有助於推動我們的淨利差擴張，而我們的淨利差原本就處於非常健康的水平。最後，雖然本季不良貸款有所增加，但這是在非常低的基數上實現的，最終數字仍然處於非常可控的範圍內。

Together these strategic initiatives have created a solid platform for current strong performance and confidence in our future. Additionally, from a capital standpoint, our earnings growth further tangible book value growth of more than 3% again this quarter above our already robust capital levels. This capital level gives us a lot of flexibility around acquisitions as well as share buyback opportunities.

這些策略舉措共同為我們目前的強勁業績和對未來的信心奠定了堅實的基礎。此外，從資本角度來看，本季我們的獲利成長進一步帶動有形帳面價值成長超過 3%，高於我們原本就十分強勁的資本水準。目前的資本水準使我們在收購和股票回購方面擁有很大的靈活性。

I will remind everyone again we have a very clear path to $10 billion and above through organic growth in the coming quarters. In summary, I'm very excited about how we are executing delivering for our customers and building our company for the future.

我再次提醒大家，在接下來的幾個季度裡，我們透過內生成長，有非常清晰的路徑實現 100 億美元及以上的營收目標。總而言之，我對我們目前為客戶提供服務以及為公司未來發展所做的努力感到非常興奮。

Looking at the quarter, Q3 was another quarter of strong earnings and returns. EPS of $0.91 and net income of $35 million while RO ROA came in at 1.42%, up 10 basis points from Q2, and PPNR at a very solid 189 was up 16 basis points. PPNR was aided by both NI expansion increase to increasing to a robust 3.93%, up 5 basis points in quarter, while net interest income rose more than 3%.

從季度來看，第三季依然是獲利和回報強勁的一個季度。每股收益為 0.91 美元，淨收入為 3500 萬美元，RO ROA 為 1.42%，比第二季度增長 10 個基點，PPNR 為 189，增長 16 個基點。淨利潤率 (PPNR) 的成長得益於淨利潤 (NI) 擴張，成長強勁，達到 3.93%，比上一季成長 5 個基點，同時淨利息收入成長超過 3%。

Asset growth was a little lighter than Q2 due to some higher payoffs, while NPAs did increase over a very low base. Charges remained low and the ACL decreased by 1 basis point quarter. Dave Van Tok is here with us, and he will add more color in a few minutes on asset growth and asset quality.

由於部分款項支付較高，資產成長比第二季略有放緩，而不良貸款在非常低的基數上增加。費用維持低位，ACL 季度下降 1 個基點。Dave Van Tok 來到了我們這裡，幾分鐘後他將就資產成長和資產品質問題補充更多細節。

Again, while customer deposit growth was somewhat muted, DDA balances remained an impressive 28% while total deposits while contributing meaningfully to our net interest income and net interest margin improvements.

雖然客戶存款成長略顯疲軟，但活期存款餘額仍維持在令人矚目的 28%，同時總存款也為我們的淨利息收入和淨利差改善做出了重要貢獻。

Expense expenses were well managed combined with our revenue growth. The efficiency ratio dropped to 54.4%, another strong number. I'm going to stop there. I don't want to take any more of Dave and Mark thunder, but and I'll turn it over to them for more details, and I look forward to your questions.

費用控制得當，同時實現了收入成長。效率比率下降至 54.4%，又是一個強勁的數字。我就說到這裡吧。我不想再搶戴夫和馬克的風頭了，我會把更多細節交給他們，期待你們的提問。

Great, thank you, Chris, and good afternoon, everyone. Continuing on slide 4 total loan balances grew by $47 million or 2.3% annually during the quarter. This growth was largely driven by CRE activities resulting in $133 million of. Balances in that category.

太好了，謝謝你，克里斯，大家下午好。繼續看第 4 張投影片，本季貸款總額增加了 4,700 萬美元，年增 2.3%。這一增長主要由商業房地產活動推動，帶來了 1.33 億美元的收益。該類別中的餘額。

Much of this gross growth was the result of construction loans converting to permanent commercial real estate loans as projects were completed during the quarter. As a result, commercial construction balances declined by $78 million. Looking forward, unfunded construction commitments grew by $37 million during the quarter, pointing towards continued growth in CRE for the balance of the year and beyond.

這一增長主要源於建築貸款在季度內隨著項目竣工而轉換為永久性商業房地產貸款。因此，商業建築餘額減少了 7,800 萬美元。展望未來，本季未註資的建築承諾增加了 3,700 萬美元，預示著今年剩餘時間和未來商業房地產將繼續成長。

Asic classes experiencing the most growth during the quarter included multi-family, flex mixed use, manufacturing, and retail. Offsetting our CRE growth were declines in our C&I balances of $46 million. These declines were driven by a combination of modest seasonal utilization reductions coupled with higher than anticipated payoffs, as Chris mentioned, and credits that we chose to exit. During Q3, total commercial loan payoffs were higher than the previous two quarters and higher than Q3 of 2024.

本季成長最快的ASIC類別包括多戶住宅、靈活混合用途、製造業和零售業。抵銷我們商業房地產成長的是我們的商業和工業貸款餘額減少了 4,600 萬美元。正如克里斯所提到的，這些下降是由季節性利用率適度下降、收益高於預期以及我們選擇退出的信貸等因素共同造成的。第三季商業貸款償還總額高於前兩季，也高於 2024 年第三季。

Turning to consumer loan activity, we saw overall growth in line with our expectations at $37 million or approximately 6% annualized. Consumer pipelines were down slightly from Q2 to Q3, but still in line with our forecast and in support of continued growth at the pace that we've seen in recent quarters.

再來看消費貸款業務，整體成長符合預期，達到 3,700 萬美元，年化成長率約 6%。消費者訂單量從第二季到第三季略有下降，但仍符合我們的預測，並支持我們最近幾季以來一直保持的成長速度。

Commercial pipelines continue to grow and sit at the highest point in 5 quarters. Given our experience in Q3 and anticipated new loan and payoff activity in Q4, we are guiding to mid single-digit loan growth in Q4. Turning to asset quality on page 5, our allowance for credit losses decreased by 1 basis point and remains appropriate for the level of credit risk in our loan book.

商業管道運輸量持續成長，達到五個季度以來的最高點。鑑於我們在第三季的經驗以及對第四季度新增貸款和還款活動的預期，我們預計第四季度貸款成長率將達到中等個位數。在第 5 頁，我們談到了資產質量，我們的信貸損失準備金減少了 1 個基點，仍然適合我們貸款組合中的信貸風險水準。

Overall, criticized and classified assets were up moderately quarter over quarter and are in a range where we expect them to remain for the foreseeable future. During the quarter, MPAs increased to 62 basis points of total loans. It's important to note that this level of NPL follows a period of exceptionally low levels and is well within an acceptable range.

總體而言，受批評和被列為受關注資產的資產環比略有增長，並且我們預計它們在可預見的未來將保持在目前的水平。本季度，MPA 佔貸款總額的 62 個基點。值得注意的是，目前的不良貸款率是在一段時期內處於極低水平之後出現的，並且完全在可接受的範圍內。

I'll also note that we do not have concern with any particular asset, class, geography, or industry. The increase was primarily a result of 2 CRE credits and 1 C&I credit that migrated during the quarter. We have asset resolution strategies in place for several NPLs, and in support of those strategies recognized charges of $2.4 million in the quarter.

我還要指出，我們不關注任何特定的資產、類別、地理或行業。此成長主要是由於本季有 2 個 CRE 信用額度和 1 個 C&I 信用額度轉移所致。我們針對幾項不良貸款制定了資產處置策略，為了支持這些策略，本季確認了 240 萬美元的費用。

And established additional specific reserve of $2.7 million. Looking forward, we expect NPLs to stabilize and potentially reduce over the balance of 2025 and into the first quarter of 2026. Taking a broader look at leading credit risk indicators, we see nothing in our credit risk rating stack, credit scoring, or delinquency that points to additional downward pressure on our credit results. I'll turn it over to Mark.

並設立了270萬美元的額外專案儲備金。展望未來，我們預計不良貸款將在 2025 年剩餘時間和 2026 年第一季趨於穩定並可能減少。從更廣泛的角度審視主要信用風險指標，我們發現，無論是信用風險評級體系、信用評分或違約率，都沒有跡象表明我們的信用績效會面臨額外的下行壓力。我把它交給馬克。

Hey, thanks, Dave. Third quarter net interest income improved by $2.6 million or 3% compared to the second quarter, and then just margin expanded by 5 basis points and combined with loan growth to produce good quarterly revenue growth.

嘿，謝謝你，戴夫。第三季淨利息收入較第二季增加 260 萬美元，增幅為 3%；此外，毛利率也成長了 5 個基點，加上貸款成長，實現了良好的季度營收成長。

The net interest margin improvement came from a 1 basis point earning asset increase combined with a 3 basis point decrease in cost of funds. Now it's mostly due to CD repricings and the higher average CDA balances of $50 million that Chris mentioned.

淨利差的改善源自於獲利資產增加 1 個基點，以及資金成本下降 3 個基點。現在這主要是由於 CD 重新定價以及 Chris 提到的平均 CDA 餘額高達 5000 萬美元。

Fed rate change came very late in the quarter. We do not see any meaningful impact from that in these results. We continue to expect that our more neutral interest rate risk position and pricing discipline will mitigate any rates down impact both what has happened so far and what is expected over the next several quarters.

聯準會利率變動是在本季末才出現的。從這些結果中，我們沒有看到任何實質的影響。我們仍然預期，我們更中性的利率風險狀況和定價紀律將減輕利率下行帶來的影響，無論是目前已經發生的還是未來幾季預計發生的。

Next on non-interest income, we saw a slight increase $0.3 million for Q3 with small improvements in our major customer fee categories. Our expectations going forward remains at about $13 million to $14 million per quarter.

接下來是非利息收入，第三季略有增加 30 萬美元，主要客戶費用類別略有改善。我們預計未來每季營收仍約為 1,300 萬至 1,400 萬美元。

On the ex, expenses were more in line in the third quarter, declining by $1.7 million compared to the second quarter. Favorable variances were concentrated in salaries and benefits, primarily in incentives and medical. Additionally, professional services decreased by about 500, mostly due to the timing of some projects.

另一方面，第三季的支出更加合理，比第二季減少了 170 萬美元。有利的差異主要集中在薪資和福利方面，尤其是獎金和醫療方面。此外，專業服務減少了約 500 人，主要是由於一些項目的時間表所致。

Our quarterly expense run rate is still expected to be approximately $57 million to $58 million for the next several quarters. Capital to TCE ratio increased by 31 basis points this quarter with AOCI improvement contributing about 7 basis points.

預計未來幾季，我們的季度支出運作率仍將維持在 5,700 萬美元至 5,800 萬美元左右。本季資本與總權益比率上升了 31 個基點，其中其他綜合收益改善貢獻了約 7 個基點。

Our regulatory ratios increased by about 15 basis points due to strong retained earnings growth. Our TCE and regu regulatory capital ratios positioned as well for the environment and will enable us to take advantage of both organic or inorganic growth opportunities. We also have a share repurchase authorization in place for $50 million. Thank you. At this time, I'd like to turn the call back over to the operator to provide instructions for asking questions.

由於留存收益強勁成長，我們的監管比率上升了約 15 個基點。我們的 TCE 和監管資本比率也符合環境要求，這將使我們能夠抓住有機或無機成長機會。我們還擁有5000萬美元的股票回購授權。謝謝。此時，我想把電話轉回給接線生，以便他們提供提問指南。

The floor is now open for questions [Operator Instructions] our first question comes from the line of Justin Crowley with Piper Sandler. Please go ahead.

現在開始接受提問。 [操作員說明]我們的第一個問題來自賈斯汀·克勞利和派珀·桑德勒。請繼續。

Hey Justin Want to start out on loan growth in the quarter and kind of looking forward. I know you went through some of this, but could you give more of a sense for, the puts and takes here between origination activity then maybe, how impactful paydowns were, which I think you called out.

嘿，賈斯汀，我想先談談本季的貸款成長情況，並展望一下未來。我知道你經歷過其中的一些事情，但你能否更詳細地談談貸款發放活動和還款活動之間的利弊，我想你已經提到過還款的影響。

Yeah, so paydowns were up quarter over quarter and again higher than what we experienced in Q3 of last year. So you know the end result was a little lighter than what we had expected. CRE activity remains strong, as I mentioned, the construction commitments.

是的，所以支出環比增加，而且再次高於去年第三季的水平。所以你知道，最終結果比我們預期的要輕一些。正如我之前提到的，商業不動產活動依然強勁，建築工程承諾也十分充足。

A grew during the quarter pointing towards better growth in Q4 and in Q1. Consumer we believe will remain at somewhere in the mid single-digit, similar to the 6% that we experienced in Q3 and working hard to drive better C&I growth.

本季A值成長，預示著第四季和第一季將有更好的成長。我們認為消費者成長將保持在個位數中段水平，類似於第三季的 6%，並且正在努力推動工商業成長。

I talked in earlier quarters about recruiting teams. They're getting up to speed. And bringing opportunities to fruition. So we feel like you know that mid single-digit number is appropriate for us, especially given the growth of the deposit franchise, we don't get too far ahead of our funding sources, but we think that's an appropriate level of growth for our for our bank.

我之前幾個季度談到了招募團隊的問題。他們正在迎頭趕上。並將機會轉化為現實。因此，我們覺得，您也知道，個位數的中段成長對我們來說是合適的，特別是考慮到存款業務的成長，我們不會遠遠超過我們的資金來源，但我們認為這對我們銀行來說是一個合適的成長水平。

Okay, and like taking that mid single-digit versus maybe the mid to high that's been discussed before, is that a function of the pay downs, is that primarily what that is or is it also what you're seeing on the deposit side? Maybe it's a combination of the two?

好的，就像之前討論過的個位數中段利率和中高利率之間的差異一樣，這主要是還款額造成的，還是也與存款額有關？或許是兩者兼而有之？

It it's a combination of all those factors plus demand in the market. There's still a fair amount of uncertainty. If you think about the budget impasse in Washington, we have the double whammy here in Pennsylvania because we've got a state budget impasse as well.

這是所有這些因素加上市場需求的綜合結果。目前仍存在相當大的不確定性。想想華盛頓的預算僵局，賓州的情況就更糟了，因為我們州也陷入了預算僵局。

So until some of those things get settled out, I think the interest rate environment's helping us and we're helping to tell that story to our customers around fixed rate borrowing, but there's still enough uncertainty out there that, mid single-digit growth feels more appropriate for us from from both a credit and funding perspective.

所以，在這些問題解決之前，我認為利率環境對我們有利，我們也正在向客戶宣傳固定利率貸款的優勢，但目前仍然存在諸多不確定因素，因此，從信貸和融資的角度來看，個位數中段的增長對我們來說更為合適。

Okay, got it. That's helpful. And then shifting a little bit on the margin and I hear you on the end being able to hold relatively stable, but you know as we get into next year with moreed cuts on the way, how do you see that playing out over more the intermediate term, in terms of the effect on them, maybe also just any color on flexibility with things like swaps continuing to roll off or anything else.

好的，明白了。那很有幫助。然後，邊際上稍微移動一下，我明白你的意思，末端能夠保持相對穩定，但是你知道，隨著我們進入明年，更多的削減即將到來，你認為這在中期內會如何發展，對他們的影響是什麼，也許還可以談談像互換繼續到期之類的靈活性問題。

Yeah, I mean, I think for the next several quarters probably into, through the first half of next year, I feel like we're fairly we're pretty well positioned to handle any of the potential rate cuts because of the funding, the funding mix that we have our ability to. Deposit rates, still CD repricing in the offing, and then also the the receipt 6 swap book that we have that will continue to mature its latter over the next several quarters.

是的，我的意思是，我認為在接下來的幾個季度，可能一直到明年上半年，由於我們擁有的資金和融資能力，我們完全有能力應對任何潛在的降息。存款利率、即將進行的 CD 重新定價，以及我們持有的收據 6 互換簿，其部分合約將在未來幾季內陸續到期。

Assuming the Fed kind of finishes up by midsummer, I think you know that will be a little bit of a reset, and we'll need to look more closely at how customer behavior, especially on the deposit side, evens out what the shape of the curve is, and those things.

假設聯準會在仲夏之前完成相關工作，我想大家都知道這將帶來一些調整，我們需要更仔細地觀察客戶行為，尤其是在存款方面，如何使曲線形狀趨於平穩等等。

Could put some pressure on the margin just on a go forward basis in a more stable rate environment, but I think a lot of things have to shake out before then. But for the next for the next, 3 quarters or so we think we're in a pretty good spot to handle the rate, the rates down. Should it come.

在利率環境更加穩定的時期，這可能會對利潤率造成一定壓力，但我認為在此之前還有很多事情需要解決。但在接下來的三個季度左右，我們認為我們有能力應對利率下降的情況。如果它來了。

Okay, and then on the deposit side as we get the we continue to get these cuts, do you have any funding that's or any deposits that are indexed directly to Fed funds and would price right away?

好的，那麼在存款方面，隨著我們繼續面臨這些減產，你們是否有任何資金或存款直接與聯邦基金利率掛鉤，並能立即定價？

Not on the deposit side. We take, we're pretty, we've been pretty proactive and have a decent discipline with respect to the exception pricing that we have with our customers, so we act fairly quickly on those, but we don't have any contractually indexed deposits.

存款方面沒有問題。我們採取了積極主動的措施，並且在與客戶的特殊定價方面有著相當的紀律，所以我們對這些特殊定價的反應相當迅速，但我們沒有任何與合約掛鉤的押金。

Okay, helpful.

好的，很有幫助。

But then we have a small amount, tied to the like a 3 month T bill, but that's maybe 100 $150 million very small.

但還有一小部分，與三個月的國債有關，但可能只有 1 億美元到 1.5 億美元，非常少。

And then I know we talked about it a lot, but on M&A and the higher levels of activity we're seeing, Chris, could you give us an update just on that side of things for you folks, or, a lot more conversations taking place or how has that all been trending from your side?

我知道我們之前也多次談到併購，以及目前我們看到的更高的併購活躍度。克里斯，你能否就這方面的情況給我們更新一下？或者說，你們那邊正在進行更多的討論，或者說，這一切的發展趨勢如何？

Yeah. The the the conversations are in the market is still active. Pennsylvania and Ohio maybe not as much as other geographies, but there's still a good number of questions a good number of conversations that are going on, and it's a key part of the ongoing outreach and engagement that we have.

是的。市場上的對話仍然活躍。賓州和俄亥俄州可能不像其他地區那樣，但仍然有很多問題，也有很多對話正在進行，這是我們持續進行的宣傳和參與活動的關鍵部分。

Okay, and you hit on the geographies and I know you've cast, somewhat of a wide net in terms of what could make sense, but does that leave areas like, in the mid-Atlantic or, DC, Maryland, is.

好的，你提到了地理位置，我知道你已經盡可能廣泛地考慮了哪些方面，但這是否意味著像大西洋中部地區、華盛頓特區、馬裡蘭州這樣的地區就被排除在外了呢？

That exactly, I would think about mid-Atlantic, excuse me, west, through Ohio. Our marketplace today is Pennsylvania and Ohio, but we certainly, are interested in places, further south and east.

沒錯，我會考慮大西洋中部，抱歉，是西​​部，一直到俄亥俄州。我們目前的市場是賓州和俄亥俄州，但我們當然也對更南、更東的地方感興趣。

Awesome thank you so much. I'll leave it there.

太棒了，非常感謝！我就說到這兒吧。

Thank you.

謝謝。

Your next question comes from the line of Daniel Tameo with Raymond James. Please go ahead.

你的下一個問題來自雷蒙德詹姆斯公司的丹尼爾塔梅奧。請繼續。

Thank you. Good afternoon, guys. Yeah, maybe first just on the on the deposit side. You touched on it, Mark, what your expectation for your ability to maintain the margins in ex several quarters, but just curious what you're seeing on the competition side kind of.

謝謝。下午好，各位。是的，或許先從存款方面著手。馬克，你剛才也提到了，你對未來幾季維持利潤率的能力有何預期，但我只是好奇你對競爭方面有什麼看法。

Recently, last few months and and what you're thinking in terms of betas for these cuts that you know the September cut and any any future cuts that we have coming.

最近幾個月，你對這些降級的 beta 值有什麼想法？你知道，9 月的降級以及我們即將推出的任何未來降級。

We did after the first cut here in September, we or last cut in September, we did see a little bit more competitive pressure than we had expected, particularly on the CD side. There seemed to be a little bit of reluctance on the part of many competitors to reduce some of those short-term rates as much as we had expected, so we made some adjustments in in how we handle some of the exception pricing. There we think that with several cuts we'll actually we'll catch up.

在九月份的第一輪裁員之後，或者說九月份的最後一輪裁員之後，我們確實看到了比預期更大的競爭壓力，尤其是在 CD 方面。許多競爭對手似乎不太願意像我們預期的那樣大幅降低一些短期利率，因此我們對一些特殊定價的處理方式進行了一些調整。我們認為，透過幾次削減，我們實際上就能趕上。

I think you know we think there's a little bit of psychology going through the 4 handle and customers being attached to getting that 4 handle rate so I think that will improve assuming that that keeps on going with multiple cuts.

我認為你知道，我們認為 4 把手柄的折扣背後有一些心理因素，顧客們都渴望獲得 4 把手柄的折扣，所以我認為，如果多次切割繼續下去，這種情況會有所改善。

On the beta, on the beta side, our loan beta overall is kind of around 40%, so we're targeting right around there or a little bit better over time with the CDE repricing included to be able to match that. That's an important part of getting us to have that more stable.

從 beta 值來看，我們的貸款 beta 值總體上在 40% 左右，所以我們的目標是在這個範圍內，或者隨著時間的推移，透過 CDE 重新定價來達到這個目標，甚至可能略好一些。這是讓我們實現更穩定狀態的重要組成部分。

Great, appreciate that. And on the $10 billion threshold, with the slower growth in the quarter, it seems like you should be able to stay under 10, next quarter and then, organically, if if that's the way you pass, it would be sometime next year.

太好了，謝謝。至於 100 億美元的門檻，鑑於本季度增長放緩，看來下個季度應該能夠保持在 100 億美元以下，然後，如果這是你實現這一目標的方式，那大概要到明年某個時候了。

That's correct, yes.

沒錯，是的。

Okay. And then maybe one for you, Chris, on profitability, you guys have been above 140 we're in the quarter, kind of. Pretty regularly now for the last few quarters. It seems like that should be relatively sustainable with credit being certainly in a good place, but is that something you think you can stay above that that 140 boogie?

好的。然後，克里斯，也許我想問你一個關於盈利能力的問題，你們的盈利能力一直高於 140，我們目前正處於一個季度，差不多是這樣。最近幾個季度以來，這種情況相當頻繁。看起來，在信貸狀況良好的情況下，這應該相對可持續，但你認為你能保持這種狀態，而不是像140堂課那樣高漲嗎？

I think in that in that range is certainly the way we're targeting things to your point, Danny, as credit continues to behave and we stay focused on that. And then, as Mark talked about, if margins hold up as we expected in this downr environment, that's certainly a reasonable number and something that we.

我認為，正如你所說，丹尼，我們肯定會在這個範圍內採取行動，因為信貸市場將繼續保持良好勢頭，而我們也將繼續專注於此。然後，正如馬克所說，如果利潤率能夠像我們預期的那樣在這種低迷的環境下保持穩定，那當然是一個合理的數字，也是我們所期望的。

We are staying focused on.

我們將繼續專注於此。

Great, okay, well, thanks for the color. I'll step back. Appreciate it.

好的，謝謝你提供的顏色。我退後一步。謝謝。

Thanks Dan.

謝謝你，丹。

Your next question comes from the line of David Bishop with the Hubby Group. Please go ahead.

你的下一個問題來自 David Bishop 的 Hubby Group。請繼續。

Yeah, thank you. Good afternoon, gentlemen.

是啊，謝謝。下午好，先生們。

Hey David.

嘿，大衛。

Hey, I appreciate the color regarding the operating expense forecast. I'm curious as you budget out into next year, any prospects or plans to, recruit or add additional bankers? I'm just curious how much is based into the numbers and how much of a list that may. Influence that on an inflationary basis if you are successful. Thanks.

嘿，我很欣賞你對營運費用預測的分析。我很好奇，在您制定明年預算時，是否有任何招聘或增加銀行家的計劃或打算？我只是好奇這些數字有多少是基於事實的，以及它可能代表了多少清單上的內容。如果你成功了，就能從通貨膨脹的角度對其產生影響。謝謝。

Well, we certainly expect to add bankers and you know the expectation is that those bankers pay for themselves. So where there's a real focus internally on improving productivity, so things like leveraging artificial intelligence, making sure that we have processes streamlined, become really important to managing, operating expenses, but we we certainly do expect to add in the customer facing roles.

當然，我們預計會增加銀行家，而且你也知道，我們的期望是這些銀行家能夠為自己帶來收益。因此，公司內部真正關注的是提高生產力，所以利用人工智慧、確保流程精簡等措施對於控制營運成本至關重要，但我們當然也希望增加面向客戶的職位。

Got it. And then in I think you mentioned the capacity for the the share buyback, just curious appetite for share repurchases at the current evaluation.

知道了。然後，我想您提到了股票回購能力，只是好奇在目前的估值下，人們對股票回購的興趣如何。

Yeah, I mean, we think there are, there might be some better opportunities, we've seen a downdraft in bank stocks overall and us in particular over the past month, so we certainly think that that's something that we're going to look a lot closer at here as we get into the rest of the quarter.

是的，我的意思是，我們認為可能存在一些更好的機會。過去一個月，我們看到銀行股整體下跌，尤其是我們自己的股票也下跌了，所以我們當然認為，在接下來的季度裡，我們將更加密切地關注這一點。

Go, then one final sort of housekeeping question, I know there's been a lot of chatter about loans to the the NDFI sector. Just curious if there's any exposure you wanted to call out. Thanks.

好了，最後還有一個例行問題，我知道最近有很多關於向非發展金融機構 (NDFI) 部門提供貸款的討論。只是好奇你有沒有什麼想指出的醜聞。謝謝。

No.

不。

Yeah, nothing material. We do have some exposure to some to some res that are technically N N DFIs, but nothing that looks like where the problems have surfaced in some of the larger regional banks. That's a space we don't we don't play in. Great, appreciate the color.

是的，沒什麼實質的。我們確實對一些技術上屬於 N N DFI 的資源有一些投資，但看起來並不像一些大型區域性銀行出現問題的地方。那是我們不涉足的領域。很棒，很喜歡這個顏色。

Your next question comes from the line of Kelly Matta with KBW. Please go ahead.

你的下一個問題來自 KBW 的 Kelly Matta。請繼續。

Hey, good afternoon. Thanks for the question. Most of mine have been asked and answered at this point, but, I guess piggybacking on on the credit question you did have the migration, although it sounds like you feel levels are low and you feel overall good. Is there any specific areas understanding you guys? Don't really have exposure to NTFIs that you you would direct analysts to watch more carefully either either at S&T or just in the the bank case more broadly.

嘿，下午好。謝謝你的提問。我的大部分問題現在都已經問過並得到了解答，但是，我想藉著你關於信用問題的說法，你確實有過遷移，雖然聽起來你覺得信用水平很低，但你總體感覺良好。你們有什麼特別需要了解的地方嗎？我並沒有真正接觸過需要我指導分析師更加密切關注的非金融實體，無論是證券交易部門還是更廣泛的銀行業。

No, I think in fact, Kelly, beyond what I mentioned relative to kind of budget crisis, credit is performing as we would have expected, and here in western Pennsylvania there are things like a big data center that's being built.

不，凱利，我認為實際上，除了我提到的預算危機之外，信貸表現正如我們預期的那樣，而且在賓夕法尼亞州西部，正在建設大型數據中心之類的項目。

Outside of Indiana here in Homer City, Pennsylvania that should add additional opportunity for growth and improving credit health in the region as you know some very large investments are made, we obviously look through our concentrations relative to commercial real estate.

除了印第安納州以外，賓州的霍默市也應該會為該地區的成長和信貸狀況的改善帶來更多機會，因為你知道，這裡進行了一些非常大的投資，我們顯然會關注我們在商業房地產方面的集中投資。

We're very comfortable with where we stand from a diversification perspective. A both construction versus permanent and all the asset classes and then we're closely managing our C&I book to make sure that we're not getting too far out on our on our risk scale.

從多元化角度來看，我們對目前的狀況非常滿意。無論是建築業還是永久性資產，以及所有資產類別，我們都在密切管理我們的工商業資產組合，以確保我們的風險控制不會過度。

So you know that's some of what led to the decline in C&I balances in Q3 where, decisions that we made relative to exiting credit. So I don't know that there's any one thing that I would point you towards other than. Kind of general economic and, political environment, specifically the budget impasses in Pennsylvania and at the national.

所以你知道，這在某種程度上導致了第三季工商業貸款餘額的下降，其中就包括我們所做的與退出信貸相關的決定。所以，除了以上幾點之外，我不知道還有什麼其他建議可以推薦給你。總體經濟和政治環境，特別是賓州和全國的預算僵局。

Level.

等級。

Got it. That's helpful. I guess last question for me would be on the funding side. Your loan to deposit ratio sits right just a touch above 100% if you appreciate the color on on the loan outlook, if you look ahead, where are you seeing opportunities to raise core funding, and the drivers of that. Thank you.

知道了。那很有幫助。我想問的最後一個問題是關於資金方面的。如果您了解貸款前景，您會發現您的貸款存款比率略高於 100%。展望未來，您認為有哪些籌集核心資金的機會，以及其驅動因素為何？謝謝。

Yeah, Kelly, excuse me, it's Chris, as we've talked about is, building the growth of our deposit franchise is a key driver of our performance in the area of focus, and that entails everything from, incentive plans to product mix to adding staff.

是的，凱莉，不好意思，我是克里斯。正如我們之前討論過的，發展我們的存款業務是我們重點領域績效的關鍵驅動因素，這涵蓋了從激勵計劃到產品組合再到增加員工等方面面。

Dave earlier asked about bankers that includes Treasury management professionals and In teams and so it's it's a critical part of who we are and you know we feel really good about our deposit mix and we feel very good about the process that we use around being proactive relative to exception pricing and ensuring that our bankers are able.

Dave 之前問過關於銀行家的問題，其中包括財務管理專業人員和團隊，所以這是我們身份的重要組成部分，你知道，我們對我們的存款結構感到非常滿意，我們對我們在特殊定價方面採取的積極主動的流程感到非常滿意，並確保我們的銀行家能夠做到這一點。

To be responsive both in the branches with consumers as well as our commercial and business bankers. So it's a it's a core part of what we think about and focus on every day and and we know improving that loan deposit ratio is really important to us as we move forward to.

在各分支機構，我們既要積極回應消費者的需求，也要積極回應商業銀行家和企業銀行家的需求。所以，這是我們每天思考和關注的核心部分，我們知道，隨著我們不斷前進，提高貸款存款比率對我們來說非常重要。

To capitalize on our growth opportunities. As Mark talked about, we did see with the most recent rate cut, some increase in competitive intensity and and we'll have to be able to respond to those things as well.

抓住我們的成長機會。正如馬克所說，我們確實看到，隨著最近一次降息，競爭強度增加，我們也必須能夠應對這些變化。

Got it. Thank you again, most of mine were asked, so I appreciate all the call today. Thank you so much.

知道了。再次感謝，我的問題大部分都被問到了，所以我很感激今天接到的所有電話。太感謝了。

Thank you.

謝謝。

Kelly.

凱莉。

Your next question comes from Matthew Breese with Stevens. Please go ahead.

下一個問題來自史蒂文斯的馬修·布里斯。請繼續。

Hey, good afternoon.

嘿，下午好。

Hey, the first one for me.

嘿，這是我的第一個。

Is it fair to think that the $10 billion dollar crossing will happen, either in the first quarter of $26 billion or second quarter of $26 billion without having to manage the balance sheet below that, too strenuously, or is there room to kind of push even further out?

認為100億美元的目標會在260億美元的第一個季度或260億美元的第二季度實現，而無需對低於該目標的資產負債表進行過於嚴格的管理，這種想法是否合理？或是否有空間將目標進一步延後？

No, I don't think so. I think, I think it'll be first certainly first half of next year, and I don't think there's any, we're going to be pretty close here at the end of the year, but shouldn't, I don't think we'll have to TRY very hard to stay under at the end of the year, but we're not of a mind to do that long-term. So I think we just, we go ahead after we after we get past 25.

不，我不這麼認為。我認為，至少在明年上半年，而且我認為到年底我們應該不會有太大問題，但我們也不應該，我認為我們不需要非常努力才能在年底前保持在目標以下，但我們也不打算長期這樣做。所以我覺得，我們過了25之後就繼續前進。

The other thing, Matt, that we are watching is some of the changes or the proposed changes in Washington relative to regulatory relief or changes in thresholds and that kind of thing that won't impact the Durban cost which we've talked about, which is in that $6 million to $7 million dollar range, but it's certainly, it makes us feel good about the fact that regardless we're prepared and but it might give us some additional flexibility to run the company.

馬特，我們還在關注華盛頓方面一些關於監管放鬆或門檻調整等方面的變化或擬議變化，這些變化不會影響我們之前討論過的德班項目成本（大約在 600 萬到 700 萬美元之間），但這些變化無疑讓我們感到欣慰，因為無論如何我們都做好了準備，而且這些變化可能會給我們帶來一些額外的靈活性來運營公司。

Got it. Okay. And then I'm sorry to harp on the nim, but it does seem like, on the back of recent cuts we could get another 2 to 325 cuts in relatively short order. I think at last count you have something like 39% or 40% floating rate loans.

知道了。好的。然後，很抱歉我又要老生常談了，但似乎在最近的削減之後，我們可能會在相對較短的時間內再得到 2 到 325 個削減。根據我上次統計，你們的浮動利率貸款利率大概是 39% 到 40% 之間。

How do you see the margin, I guess, my gut is that the margin has near term downside before deposits start to catch up and you get some of that back, but I was curious on the timing difference between, floating rate loans and your ability to act on act on deposits if you could help me out on the.

您如何看待利潤率？我猜，我的直覺是，在存款開始趕上之前，利潤率短期內可能會下降，之後您就能挽回一些損失。但我很好奇浮動利率貸款和您對存款採取行動的能力之間存在的時間差異，如果您能幫我解答一下就太好了。

Yeah, I think our, I mean our floating has decreased some, especially when you figure in the swap exposure we have, so it's closer to 30% net, so I think that gives us a little bit of relief. So we run the models. I mean there is, some risk if that competitive.

是的，我認為我們的浮動利率有所下降，特別是考慮到我們的互換敞口，淨利率接近 30%，所以我認為這給我們帶來了一些緩解。於是我們運行模型。我的意思是，如果競爭這麼激烈，確實存在一些風險。

A piece of the deposit side that we've talked about expands beyond CDs and really starts to bore into, kind of money market and the interest-bearing demand sector, but the modeling we've done so far, doesn't have that sort of air pocket that you alluded to, we think we can still maintain that fairly quickly with the Fed changes.

我們討論過的存款部分不僅限於定期存單，而是真正開始深入到貨幣市場和計息需求領域，但我們目前所做的模型並沒有你提到的那種“空隙”，我們認為隨著美聯儲的政策變化，我們仍然可以很快地維持這種狀態。

Okay. The credit that went non-performing, could you just give us some insight as to, what business lines were behind the C&I credit and what sectors the commercial real estate credits were attached to and any kind of underlying factor was it. Higher rates and just kind of a strain that way or was it more idiosyncratic.

好的。對於那些變成不良貸款的信貸，您能否給我們一些見解，例如，C&I 信貸背後有哪些業務線，商業房地產信貸又與哪些行業相關，以及是否存在任何潛在因素？更高的利率，或者說這是一種壓力，還是更特殊的原因？

Yeah, Matt, I don't want to get into specific details on these credits because they are active workouts. The C&I credit was a manufacturer, the two CRE credits were. Really a function of, kind of construction related risk, but as I mentioned, we've got asset resolution plans in place that we hope to execute on over the next couple quarters and again we don't see anything generally or specifically tied to any industry geography or asset class that gives us kind of additional heartburn in terms of down more downside risk.

是的，馬特，我不想詳細介紹這些學分，因為它們是動態鍛鍊。C&I 信用額度屬於製造商，兩個 CRE 信用額度也屬於製造商。這實際上與建築相關的風險有關，但正如我所提到的，我們已經制定了資產處置計劃，希望在接下來的幾個季度內執行這些計劃。而且，我們沒有看到任何與任何行業、地理或資產類別相關的因素，會為我們帶來額外的下行風險。

Okay, I appreciate that. Chris, last one for you, on M&A you'd mentioned kind of. Geographic preferences, I guess beyond that, what do you make in a an attractive target? What business lines or deposit composition are you looking for? I guess I'm looking for some color on the strategy component the M&A on geography.

好的，謝謝。克里斯，最後一個問題，關於併購，你之前也提到過。地理偏好，我想除了這些之外，你認為吸引目標的因素是什麼？您想了解哪些業務類型或存款組成？我想了解併購策略中地域因素方面的一些細節。

Yeah, so strategically we obviously, I mean, I'm a big believer that you, acquisitions are, focused primarily on the deposit franchise, and you know that type of of opportunity would help with the funding mix that we have today as well as give us a core group of customers to expand relationships around. So we think about it in a couple of ways.

是的，所以從策略角度來看，我們顯然，我的意思是，我非常相信收購應該主要集中在存款業務上，你知道，這種機會不僅有助於我們目前的融資組合，還能為我們提供一批核心客戶，以便圍繞他們拓展關係。所以我們從幾個方面來考慮這個問題。

One, there's geographic. Expansion that could be into, faster growing areas than where we are today. Then you've got geographic overlap that would, create some potential efficiencies for us. Both of those things could be important to us, but kind of the key driver really is thinking about that deposit franchise. There may be a line of business that may help us expand our C&I capabilities, for example.

第一，是地理位置。擴張方向可以是比我們目前所在地區成長速度更快的地區。這樣一來，地理上的重疊部分就能為我們帶來一些潛在的效率提升。這兩件事對我們來說都可能很重要，但真正關鍵的驅動因素是考慮存款業務。例如，可能有一條業務線可以幫助我們擴展工商業能力。

Or our focus on small business. Some of that is unique to the to a specific transaction. So we think about the balance sheet makeup of the company first and foremost, a heavy emphasis on on the deposit side of the balance sheet, understanding credit risk, and then does it represent an ability to to grow the company faster.

或者我們專注於小型企業。有些情況是特定交易所獨有的。因此，我們首先考慮的是公司的資產負債表構成，重點在於資產負債表的存款部分，了解信用風險，以及這是否代表了公司更快發展的能力。

Got it. I appreciate all that. Thank you.

知道了。我非常感激。謝謝。

Sure thing.

當然可以。

I would like to turn the call over to Chief Executive Officer Chris McComish for closing remarks.

我謹將電話交給執行長克里斯·麥克科米甚，請他作總結發言。

Okay, well, listen, thanks everybody for your good questions and your engagement. We really appreciate it and your interest in our company and all you're doing to support what we're trying to do. We look forward to being with you again next quarter. In the meantime, we're going to go back to work and see what we can do to grow the bank. Have a great day.

好的，謝謝大家的提問和積極參與。我們非常感謝您對我們公司的關注，以及您為支持我們正在做的事情所做的一切。我們期待下個季度再次與您合作。同時，我們將重返工作崗位，看看我們能做些什麼來發展壯大銀行。祝你有美好的一天。

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝各位的參與。您現在可以斷開連線了。