S&T Bancorp, Inc. Announces Third Quarter 2026 Results

EmitenTrust.com Record Third Quarter 2026 Earnings Per Share

INDIANA, Pa., Oct. 22, 2026 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $38.6 million for the third quarter of 2026 compared to $36.6 million for the second quarter of 2026 and $35.0 million for the third quarter of 2025. Diluted earnings per share was a record high of $1.09 for the third quarter of 2026, an increase of $0.07, or 6.9%, compared to $1.02 for the second quarter of 2026 and an increase of $0.18, or 19.8%, compared to $0.91 for the third quarter of 2025. Diluted earnings per share growth was due to both higher net income and share repurchases of 8.3% of outstanding shares since September 30, 2025.

Third Quarter of 2026 Highlights:

• Strong return metrics with return on average assets (ROA) of 1.55%, return on average equity (ROE) of 10.84% and return on average tangible shareholders' equity (ROTE) (non-GAAP) of 14.81% compared to ROA of 1.49%, ROE of 10.37% and ROTE (non-GAAP) of 14.15% for the second quarter of 2026.
• Pre-provision net revenue to average assets (PPNR) (non-GAAP) increased 12 basis points to 2.01% compared to 1.89% for the second quarter of 2026.
• Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) expanded 7 basis points to 4.06% compared to 3.99% in the second quarter of 2026.
• Net charge-offs were $2.1 million, or 0.10% of average loans, compared to net charge-offs of $1.0 million, or 0.05% of average loans, in the second quarter of 2026.
• Nonperforming assets (NPAs) decreased $3.7 million to $36.5 million, or 0.45% of total loans plus other real estate owned (OREO), compared to $40.2 million, or 0.50%, at June 30, 2026.

"Our results reflect another strong quarter, highlighted by record earnings per share, record revenue and higher core profitability," said Chris McComish, chief executive officer. "We delivered broad-based strength across our income statement which reflects our disciplined operating strategy and continued focus on creating shareholder value. We believe we are well-positioned to build on this momentum and capitalize on future opportunities."

Net Interest Income

Net interest income was $93.1 million in the third quarter of 2026 compared to $90.4 million in the second quarter of 2026. NIM (FTE) (non-GAAP) increased 7 basis points to 4.06% compared to 3.99% in the prior quarter. The increase in net interest income was primarily due to higher yields on interest-earning assets and one additional day in the third quarter compared to the second quarter. The yield on average interest-earning assets increased 9 basis points to 5.73% compared to 5.64% in the second quarter of 2026 primarily related to a higher yield on both average securities and average loans. The yield on total average loans increased 6 basis points to 5.95% compared to 5.89% in the prior quarter. Average total loan balances increased $61.2 million to $8.1 billion compared to $8.0 billion in the second quarter of 2026. Total interest-bearing liability costs increased 3 basis points to 2.53% compared to 2.50% in the second quarter of 2026 mainly due to a higher cost of deposits and borrowings. Average interest-bearing deposits increased $31.8 million to $5.9 billion compared to $5.8 billion in the prior quarter.

Asset Quality

The allowance for credit losses, or ACL, was unchanged at $93.3 million, or 1.16% of total portfolio loans, at both September 30, 2026 and June 30, 2026. The provision for credit losses was $1.4 million for the third quarter of 2026 compared to $1.1 million in the second quarter of 2026. Net loan charge-offs were $2.1 million, or 0.10% of average loans, compared to $1.0 million, or 0.05% of average loans, in the second quarter of 2026. NPAs decreased $3.7 million to $36.5 million, or 0.45% of total loans plus OREO, compared to $40.2 million, or 0.50%, at June 30, 2026.

Noninterest Income and Expense

Noninterest income was relatively unchanged at $14.7 million in the third quarter of 2026 compared to $14.9 million in the second quarter of 2026. Expenses were well controlled during the third quarter with an efficiency ratio (FTE) (non-GAAP) of 53.23% compared to 55.52% in the second quarter of 2026. Noninterest expense decreased $1.1 million to $57.6 million in the third quarter of 2026 compared to $58.7 million in the second quarter of 2026. Other noninterest expense decreased $0.9 million primarily due to normal fluctuations across several expense categories and timing-related items.

Financial Condition

Total assets were $9.9 billion at both September 30, 2026 and June 30, 2026. Total portfolio loans decreased $4.4 million compared to June 30, 2026 due to lower line utilization and originations. Commercial loans decreased $11.9 million and consumer loans increased $7.5 million compared to June 30, 2026. The decrease in the commercial loan portfolio was due to a decrease in commercial and industrial of $51.1 million and a decrease in commercial construction of $25.6 million, offset by growth in commercial real estate of $64.8 million compared to June 30, 2026. Deposits were down modestly in the third quarter of 2026 primarily due to seasonality. Total deposits decreased $22.2 million compared to June 30, 2026. Noninterest bearing deposits decreased $32.6 million and savings decreased $8.3 million, offset primarily by an increase in certificates of deposit of $15.0 million. Total borrowings decreased $60.0 million to $215.3 million at September 30, 2026 compared to $275.3 million at June 30, 2026.

Capital

S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

No share repurchases occurred in the third quarter of 2026. A total of 3,169,294 shares were repurchased, representing 8.3% of outstanding shares, at an average price of $42.09 per share totaling $133.4 million since share repurchases began in the fourth quarter of 2025.

Conference Call

S&T will host its third quarter 2026 earnings conference call live via webcast at 1:00 pm ET, Thursday, October 22, 2026. To access the webcast, go to S&T Bancorp Inc.'s Investor Relations webpage stbancorp.com. After the live presentation, the webcast will be archived at stbancorp.com for 12 months.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $9.9 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram, LinkedIn and X.

Forward-Looking Statements

This information contains or incorporates statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," "believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could" or "may." Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cybersecurity concerns; rapid technological developments and changes, including the use of artificial intelligence and digital assets; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our brand risks; sensitivity to the interest rate environment, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and other employees; general economic or business conditions, including the strength of regional economic conditions in our market area; ESG practices and disclosures, including climate change, hiring practices, the diversity of the work force and racial and social justice issues; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses and geopolitical tensions and conflicts between nations.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2025, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Non-GAAP Financial Measures

In addition to traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholders' equity, PPNR to average assets, efficiency ratio on an FTE basis, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors' understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures.

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SOURCE S&T Bancorp, Inc.