Record earnings per share in the third quarter of 2026

Indiana, Indiana, United States, October 22nd / PRNewswire / -- S& T Bancorp, Inc. (S&T) ( NASDAQ : STBA ), the holding company of S& T Bank, announced a net profit of $38.6 million for the third quarter of 2026, which is higher than $36.6 million in the second quarter of 2026 and also higher than $35 million in the third quarter of 2025. The diluted earnings per share for the third quarter of 2026 reached a record of $1.09, up from $1.02 in the second quarter of 2026, an increase of $0.07 or 6.9%; it is also higher than $0.91 in the third quarter of 2025, an increase of $0.18 or 19.8%. The growth in diluted earnings per share was partly due to the increase in net profit, as well as the company's repurchase of 8.3% of its outstanding shares since September 30, 2025.

Key Points of the Third Quarter of 2026

• Strong return indicators: The average return on assets ( ROA ) is 1.55%, the average return on equity ( ROE ) is 10.84%, and the average return on tangible shareholders' equity ( ROTE , non- GAAP ) is 14.81%; in the second quarter of the previous year, these figures were 1.49%, 10.37%, and 14.15%, respectively.
• The ratio of net income before tax and provisions to average assets ( PPNR , not GAAP ) increased by 12 basis points to 2.01%, compared to 1.89% in the second quarter of last year.
• The net interest margin calculated on a fully taxable equivalent basis (NIM, FTE, not GAAP) expanded by 7 basis points to 4.06%, compared to 3.99% in the second quarter of last year.
• The net write-off amount is $2.1 million, which accounts for 0.10% of the average loans; in the second quarter of last year, it was $1 million, accounting for 0.05% of the average loans.
• Non-performing assets ($NPAs) decreased by $3.7 million to $36.5 million, accounting for 0.45% of total loans plus other owned real estate ($OREO); as of June 30, 2026, it amounted to $40.2 million, accounting for 0.50%.

CEO Chris McComish stated: "Our performance reflects another strong quarter, with highlights including record earnings per share, record revenue, and higher core profitability. We have achieved broad growth across all segments of our income statement, which reflects our prudent business strategy and our focus on continuously creating value for shareholders. We believe the company is well-prepared to continue this momentum and seize future opportunities."

Net interest income

In the third quarter of 2026, net interest income amounted to 93.1 million US dollars, which is higher than the 90.4 million US dollars in the second quarter of 2026. The net interest margin ( FTE , not GAAP ) calculated on a fully taxable equivalent basis expanded by 7 basis points to 4.06% from 3.99% in the previous quarter. The increase in net interest income was mainly due to the higher yield on earning assets, as well as the additional day in the third quarter compared to the second quarter. The average yield on earning assets rose by 9 basis points to 5.73% from 5.64% in the previous quarter, primarily related to increases in the average yield on securities and loans. The average yield on total loans increased by 6 basis points to 5.95% from 5.89% in the previous quarter. The average total loan balance increased by 61.2 million US dollars to 8.1 billion US dollars, from 8 billion US dollars in the previous quarter. The total cost of interest-bearing liabilities rose by 3 basis points to 2.53% from 2.50% in the previous quarter, mainly due to increases in the costs of deposits and borrowings. The average interest-bearing deposits increased by 31.8 million US dollars to 5.9 billion US dollars, from 5.8 billion US dollars in the previous quarter.

Asset Quality

As of September 30, 2026, and June 30, 2026, the credit loss provisions ( ACL ) were both $93.3 million, accounting for 1.16% of the total loan portfolio. In the third quarter of 2026, credit loss provisions amounted to $1.4 million, which is higher than $1.1 million in the second quarter. The net write-off of loans was $2.1 million, representing 0.10% of the average loans; in the second quarter, it was $1 million, accounting for 0.05% of the average loans. Non-performing assets decreased by $3.7 million to $36.5 million, accounting for 0.45% of the total loans plus OREO; as of June 30, 2026, it was $40.2 million, accounting for 0.50%.

Non-interest income and expenses

In the third quarter of 2026, non-interest income remained relatively stable at $14.7 million, compared to $14.9 million in the second quarter. Expenses were well controlled in the third quarter, and the efficiency ratio (non-GAAP) calculated using the FTE metric was 53.23%, compared to 55.52% in the second quarter. Non-interest expenses in the third quarter of 2026 decreased by $1.1 million to $57.6 million, while in the second quarter they were $58.7 million. Other non-interest expenses also decreased by $0.9 million, mainly due to normal fluctuations in certain expense categories and time-related items.

Financial Condition

As of September 30, 2026, and June 30, 2026, the total assets amounted to $9.9 billion. The total loan portfolio decreased by $4.4 million as of June 30, 2026, due to a decline in credit utilization and loan disbursement volumes. Commercial loans decreased by $11.9 million, while consumer loans increased by $7.5 million. The decline in the commercial loan portfolio was mainly due to a reduction of $51.1 million in industrial and commercial loans and $25.6 million in commercial building loans; however, an increase of $64.8 million in commercial real estate loans partially offset these declines. Deposits saw a slight decrease in the third quarter of 2026, primarily influenced by seasonal factors. Total deposits decreased by $22.2 million from June 30, 2026; interest-free deposits decreased by $32.6 million, and savings deposits decreased by $8.3 million, although this was partly offset by an increase of $15 million in time deposits. Total borrowings decreased by $60 million to $215.3 million, with $215.3 million as of September 30, 2026, and $275.3 million as of June 30, 2026.

Capital

S&T continues to maintain a robust level of regulatory capital, with all capital ratios exceeding the "capital adequacy" thresholds stipulated by the US federal banking regulatory authorities.

No share repurchases occurred in the third quarter of 2026. Since the repurchase program was initiated in the fourth quarter of 2025, the company has cumulatively repurchased 3,169,294 shares, accounting for 8.3% of the outstanding shares, at an average price of $42.09 per share, for a total amount of $1.334 billion.

Teleconference

S&T will hold a teleconference for its third-quarter financial report of 2026 at 1:00 p.m. on Thursday, October 22, 2026, Eastern Time, via live webcast. Investors can access the live broadcast by visiting S& T Bancorp Inc Investor Relations webpage stbancorp.com. After the live broadcast, the replay will be archived for 12 months at stbancorp.com.

Regarding S& T Bancorp, Inc, and S& T Bank

S& T Bancorp, Inc is a bank holding company with an asset scale of $9.9 billion, headquartered in Indiana, Pennsylvania. Its shares are traded on the NASDAQ Global Select Market under the code STBA. Its main subsidiary, S& T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, please visit stbancorp.com or stbank.com, and you can follow the company on Facebook, Instagram, LinkedIn and X.

Forward-looking Statements

This information contains or refers to what we consider to be “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically relate to our financial condition, operating results, plans, objectives, revenue projections, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters related to S&T’s future business and operations or that may affect such business and operations. Forward-looking statements can often be identified by words such as “may result in,” “expected,” “anticipated,” “estimated,” “predicted,” “planned,” “intended,” “believed,” “assumed,” “strategy,” “trend,” “planning,” “outlook,” “result,” “continue,” “maintain,” “potential,” “opportunity,” “confident,” “current,” “positioned,” “sustain,” “continuous,” “seek,” “achieve,” and similar expressions, or by future tense or conditional verbs such as “will,” “shall,” “should,” “may,” “perhaps,” etc. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any assumptions may prove to be incorrect, and accordingly, the forward-looking statements based on those assumptions may also be inaccurate.The matters discussed in the forward-looking statements are subject to various risks, uncertainties, and other factors that may cause actual results and trends to differ significantly from those stated, predicted, or implied in the forward-looking statements. These factors include, but are not limited to: credit losses and credit risks associated with commercial and consumer loan products; changes in write-off levels and changes in the assessment of the adequacy of credit loss provisions ( ACL ); cybersecurity issues; rapid technological development and changes, including the use of artificial intelligence and digital assets; operational risks or errors in risk management by us or key third parties, including fraud risks; our ability to manage brand risks; sensitivity to interest rate environments, rapid increases in interest rates, or changes in the yield curve shape; changes in the interest rate spread between interest-bearing assets and interest-bearing liabilities; regulatory oversight and examinations, including changes in capital requirements and our ability to meet these requirements; unexpected changes in liquidity conditions; unexpected changes in regulations and government policies that affect interest rates and financial markets; changes in accounting policies, practices, or guidelines; legislation that affects the entire financial services industry and particularly S&T; developments that affect the stability of the industry and financial institutions, as well as further disruptions to the economy and the U.S. banking system; outcomes of pending and future litigation and government proceedings; intensified competition in prices and products/services; the ability to continuously launch competitive new products and services in a timely and cost-effective manner; internal growth and merger and acquisition management; the potential inability to realize expected merger and acquisition benefits in a timely manner or at all, or the integration of acquired businesses being more difficult, disruptive, or more costly than anticipated; cost and expense control; dependence on important customer relationships; significant service interruptions or cessations by third-party service providers; the ability to attract and retain outstanding executives and other employees; general economic or business conditions, including the strength of the regional economy in our market areas; ESG practices and disclosures, including climate change, recruitment practices, labor diversity, and issues of racial and social justice;Deterioration of the housing market and decline in mortgage demand; a worsening overall macroeconomic situation or banking conditions may require further assessment of the carrying amount of goodwill, which could lead to adjustments in its carrying amount and thus result in non-cash expenses affecting net profit; the stability of the core deposit base and emergency financing channels; renewed turmoil in important parts of the global financial and real estate markets, which may directly affect our revenue as well as the value of our assets and liabilities, and indirectly impact the overall economy and our ability to obtain capital in the required amounts, at the required times, and under the required conditions to support future operations; as well as geopolitical tensions and conflicts between countries.

Many of the aforementioned factors, as well as other factors, have been explained in our annual report Form 10-K for the year ending December 31, 2025, including item 1A "Risk Factors" in Part I, as well as in any subsequent documents submitted to the U.S. Securities and Exchange Commission. Forward-looking statements are based on information available at the time of such statements and on relevant beliefs and assumptions. We remind you not to rely too heavily on forward-looking statements, as assumptions, beliefs, expectations, and projections regarding future events may, and often do, differ significantly from actual results. Any forward-looking statement represents only the circumstances as of the date it is made, and we have no obligation to update any forward-looking statement to reflect subsequent developments or changes.

Non-GAAP financial indicators

In addition to the traditional indicators listed as GAAP, the company's management also uses and includes in this information certain non-GAAP financial indicators, such as tangible book value, average return on tangible shareholders' equity, PPNR as a ratio of average assets, efficiency ratios calculated using the FTE methodology, the ratio of tangible common equity to tangible assets, and net interest margin calculated using the FTE methodology. The company believes that these non-GAAP financial indicators help investors understand its underlying operational performance and business and performance trends, and facilitate comparison with other companies in the financial services industry. Although the company believes that these non-GAAP financial indicators assist investors in better understanding its business and performance, they should not be considered a substitute for the GAAP indicators, nor should they be regarded as more important than the financial results determined by the GAAP methodology; moreover, they may not necessarily be directly comparable to the non-GAAP indicators disclosed by other companies. For more information on these financial indicators, please refer to GAAP and the definitions and adjustment explanations for non-GAAP financial indicators.