INDIANA, Pa. - S&T Bancorp, Inc. (NASDAQ: STBA), the parent company of S&T Bank, has declared a quarterly cash dividend of $0.33 per share, marking a 3.13% increase from the $0.32 dividend paid in the same quarter the previous year. This decision was made by the company's board of directors on Wednesday.
The new dividend represents an annualized yield of 3.08% based on the closing stock price of $42.80 on July 23, 2024. Shareholders on record as of August 8, 2024, will be eligible to receive the dividend, which is scheduled for payment on August 22, 2024.
S&T Bancorp, Inc., with a market capitalization of $9.6 billion, has its headquarters in Indiana, Pennsylvania. The company's primary subsidiary, S&T Bank, has been operational since 1902 and serves customers in Pennsylvania and Ohio. The bank's performance and services are accessible through various social media platforms, including Facebook (NASDAQ:META), Instagram, and LinkedIn.
The modest increase in the dividend payout is indicative of S&T Bancorp's financial performance and its commitment to providing value to its shareholders. The announcement is based on a press release statement from the company.
In other recent news, S&T Bancorp demonstrated a robust financial performance in the second quarter of 2024. The company reported a significant increase in net income, reaching $34 million or $0.89 per share, which marked an improvement from the previous quarter. Noteworthy financial indicators such as return on tangible common equity (ROTCE) and net interest margin (NIM) exhibited positive trends.
Additionally, S&T Bancorp emphasized a strong loan pipeline and future plans for reducing specific types of deposits. The company forecasts low single-digit loan growth in the third quarter, primarily driven by consumer and retail mortgage activities.
Furthermore, S&T Bancorp announced plans for balance sheet repositioning, which resulted in a gain of 370 basis points. The company anticipates net interest margin to stabilize with minimal compression and sees opportunities for deposit growth within the existing customer base. These recent developments indicate that S&T Bancorp is positioning itself for sustained growth while navigating the current economic landscape.
InvestingPro Insights
S&T Bancorp, Inc. (NASDAQ: STBA) recently announced a dividend increase, reinforcing its reputation as a consistent dividend payer. According to InvestingPro, STBA has raised its dividend for 11 consecutive years, and it has maintained dividend payments for 36 consecutive years, showcasing a strong commitment to shareholder returns.
InvestingPro Data shows that the company has a market capitalization of $1.66 billion and offers an attractive dividend yield of 3.08%. Moreover, the stock is trading near its 52-week high, at 98.98% of the peak price, emphasizing investor confidence in the company's performance. With a solid price to earnings (P/E) ratio of 12.36, S&T Bancorp stands out as a potentially valuable pick for investors seeking steady income combined with the potential for capital appreciation.
It's noteworthy that S&T Bancorp has seen a significant return over the past week, month, and three months, with price total returns of 7.56%, 34.3%, and 38.31%, respectively. This trend reflects a strong market sentiment and positive investor response to the company's recent performance and outlook.
For those interested in further insights and metrics on S&T Bancorp, Inc., InvestingPro offers additional tips that can help investors make informed decisions. There are currently 13 additional InvestingPro Tips available for STBA, providing a deeper analysis of the company's financial health and future prospects. To delve into these valuable insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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