Keefe Bruyette & Woods Raises Estimates, PT on S&T Bancorp

S&T Bancorp STBA reported earnings of $0.41/sh as continued credit improvements led to a significantly lower provision driving the quarterly beat. Additional variances to Keefe Bruyette & Woods model included weaker spread and fee income along with higher operating expenses. As KBW begins to gain greater comfort with the bank's credit outlook, it is modestly adjusting our provision expense downward, leading to increased estimates. Risks to achieving KBW's estimates and price target include, but are not limited to, interest rate risk, asset quality deterioration and integration risk. Failure to successfully integrate past and future acquisitions may adversely impact the bank's ability to achieve the estimates and price target. KBW has a $23 PT and Market Perform Rating on STBA STBA closed Tuesday at $22.32