Bull case
S&T Bancorp is a strong and stable financial holding company with a diversified range of financial services, including consumer and commercial banking, trust and brokerage services. The company has a solid track record of financial performance, with notable improvements in credit quality and net interest income in the recent quarter. However, the $10 billion asset size threshold remains a key factor that could impact future revenue and growth prospects for the company, and we expect them to pursue an acquisition to offset this. Overall, we believe S&T Bancorp is well-positioned for long-term success with its strategic priorities of growing its deposit base, improving core profitability and asset quality, and acquiring talent. And while the company currently trades at a premium compared to its peers, we believe this is justified given its higher profitability and excess capital levels.