S&T Bancorp, Inc. (NASDAQ:STBA) Q3 2023 Earnings Call Transcript

Mark Kochvar: Yes. We think about that all the time. I guess, I mean just a few comments I’ll make is that, as I said, kind of our baseline, just given where we’re at is that we are going to have some margin compression. That kind of uses the Fed doesn’t do much from here, at least through ‘24, so kind of the higher for longer. But with that, that is a better scenario for us than a rate down on the front-end scenario. Even though we have hedged out some of our exposure to the front of the curve because we are still our asset-sensitive bank, not all of that goes away. So, we’re still better off with a higher rate environment on the front end than we were if they were to cut 100 or 200 basis points, we would have more difficulty on the margin side, keeping pace with that. So higher for longer, even though it represents compression or a challenge for us on a baseline is still better than a Fed down scenario.

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

Chris McComish: Okay. Well, thank you. We really appreciate the engagement of the analyst community and the questions. And again, there’s a lot to feel proud of in the quarter. We look forward to finishing the year strong and moving on to a productive 2024. So, thanks to everybody for joining us this afternoon. Have a good rest of the week.

Operator: This concludes today’s conference call. You may now disconnect.