Record EPS in the third quarter of 2026
Indianapolis, Indiana, USA, October 22 /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, exceeding $36.6 million in the second quarter of 2026 and $35.0 million in the third quarter of 2025. Diluted earnings per share for the third quarter of 2026 reached a record of $1.09, up $0.07, or 6.9%, from $1.02 in the second quarter of 2026, and up $0.18, or 19.8%, from $0.91 in the third quarter of 2025. The increase in diluted earnings per share was partially driven by higher net income and the company's repurchase of 8.3% of its outstanding shares since September 30, 2025.
Key Highlights for Q3 2026
- Strong return metrics: Average return on assets (ROA) of 1.55%, average return on equity (ROE) of 10.84%, and average return on tangible shareholders' equity (ROTE, non-GAAP) of 14.81%; compared to 1.49%, 10.37%, and 14.15% in the second quarter of the prior year.
- Pre-provision, pre-tax net income as a percentage of average assets (PPNR, non-GAAP) increased 12 basis points to 2.01%, compared to 1.89% in the second quarter of the prior year.
- Net interest margin (NIM, FTE, non-GAAP), calculated on a fully taxable equivalent basis, expanded 7 basis points to 4.06% from 3.99% in the second quarter of last year.
- The net write-off amount was $2.1 million, representing 0.10% of the average loan balance; in the second quarter of last year, it was $1 million, or 0.05% of the average loan balance.
- Non-performing assets (NPAs) decreased by $3.7 million to $36.5 million, representing 0.45% of total loans plus other real estate owned (OREO); as of June 30, 2026, they were $40.2 million, or 0.50%.
CEO Chris McComish said, “Our results reflect another strong quarter, highlighted by record earnings per share, record revenue, and improved core profitability. We achieved broad growth across all income statement line items, demonstrating our disciplined operating strategy and continued focus on creating value for shareholders. We believe the company is well-positioned to sustain this momentum and capitalize on future opportunities.”
Net interest income
Net interest income for the third quarter of 2026 was $931 million, compared to $904 million in the second quarter of 2026. The net interest margin on a fully taxable equivalent (FTE, non-GAAP) basis expanded by 7 basis points to 4.06%, up from 3.99% in the prior quarter. The increase in net interest income was primarily driven by higher yields on earning assets and one additional day in the third quarter compared to the second quarter. The average yield on earning assets increased by 9 basis points to 5.73%, up from 5.64% in the prior quarter, primarily due to higher average yields on securities and loans. The average yield on total loans increased by 6 basis points to 5.95%, up from 5.89% in the prior quarter. Average total loan balances rose by $612 million to $8.1 billion, compared to $8.0 billion in the prior quarter. The total cost of interest-bearing liabilities increased by 3 basis points to 2.53%, up from 2.50% in the prior quarter, primarily due to higher costs on deposits and borrowings. Average interest-bearing deposits increased by $318 million to $5.9 billion, compared to $5.8 billion in the prior quarter.
Asset quality
As of September 30, 2026, and June 30, 2026, the allowance for credit losses (ACL) was $93.3 million, representing 1.16% of the total loan portfolio. Credit loss provision for the third quarter of 2026 was $1.4 million, up from $1.1 million in the second quarter. Net loan charge-offs amounted to $2.1 million, or 0.10% of average loans; in the second quarter, they were $1.0 million, or 0.05% of average loans. Nonperforming assets decreased by $3.7 million to $36.5 million, representing 0.45% of total loans plus OREO; as of June 30, 2026, they were $40.2 million, or 0.50%.
Non-interest income and fees
Non-interest income in the third quarter of 2026 remained essentially flat at $14.7 million, compared to $14.9 million in the second quarter. Expense management was strong in the third quarter, with an efficiency ratio (non-GAAP, FTE basis) of 53.23%, down from 55.52% in the second quarter. Non-interest expenses decreased by $1.1 million to $57.6 million in the third quarter of 2026, compared to $58.7 million in the second quarter. Other non-interest expenses declined by $900,000, primarily due to normal fluctuations in certain expense categories and timing-related items.
Financial Status
As of September 30, 2026, and June 30, 2026, total assets were both $9.9 billion. The total loan portfolio decreased by $4.4 million compared to June 30, 2026, due to lower utilization rates and reduced lending volume. Commercial loans decreased by $11.9 million, while consumer loans increased by $7.5 million. The decline in the commercial loan portfolio was primarily driven by a $51.1 million reduction in commercial and industrial loans and a $25.6 million decrease in commercial construction loans, partially offset by a $64.8 million increase in commercial real estate loans. Deposits declined slightly in the third quarter of 2026, primarily due to seasonal factors. Total deposits decreased by $22.2 million compared to June 30, 2026; non-interest-bearing deposits fell by $32.6 million, and savings deposits decreased by $8.3 million, partially offset by a $15 million increase in certificates of deposit. Total borrowings decreased by $60 million to $215.3 million as of September 30, 2026, compared to $275.3 million as of June 30, 2026.
Capital
S&T continues to maintain a solid regulatory capital position, with all capital ratios exceeding the "well-capitalized" thresholds set by U.S. federal banking regulators.
No stock repurchases occurred in the third quarter of 2026. Since the repurchase program was initiated in the fourth quarter of 2025, the company has repurchased a total of 3,169,294 shares, representing 8.3% of outstanding shares, at an average price of $42.09 per share, for a total of $1.334 billion.
Telephone conference
S&T will hold its third quarter 2026 earnings conference call via webcast on Thursday, October 22, 2026, at 1:00 PM Eastern Time. Investors can access the live webcast on the S&T Bancorp Inc. investor relations website at stbancorp.com. A replay of the webcast will be archived on stbancorp.com for 12 months following the call.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a bank holding company with $9.9 billion in assets, headquartered in Indiana, Pennsylvania, and its stock is traded on the Nasdaq Global Select Market under the ticker symbol STBA. Its primary subsidiary, S&T Bank, established in 1902, operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com, and follow the company on Facebook, Instagram, LinkedIn, and X.
Forward-looking statements
This information contains or incorporates forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically relate to our financial condition, operating results, plans, objectives, earnings outlook, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial condition, and other matters affecting or relating to S&T and its future business and operations. Forward-looking statements are often identified by words or expressions such as “may result in,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “intend,” “believe,” “assume,” “strategy,” “trend,” “forecast,” “outlook,” “result,” “continue,” “maintain,” “potential,” “opportunity,” “confident,” “current,” “positioned,” “sustain,” “persist,” “seek,” and “achieve,” or by future-tense or conditional verbs such as “will,” “would,” “should,” “may,” or “could.” Although we believe the assumptions underlying these forward-looking statements are reasonable, any assumption may prove to be inaccurate, and forward-looking statements based on such assumptions may not be correct. The matters discussed in forward-looking statements are subject to various risks, uncertainties, and other factors that could cause actual results and trends to differ materially from those expressed, predicted, or implied by the forward-looking statements, including but not limited to: credit losses and credit risk associated with commercial and consumer loan products; changes in charge-off levels and changes in estimates of the adequacy of the allowance for credit losses (ACL); cybersecurity issues; rapid technological developments and changes, including the use of artificial intelligence and digital assets; operational risk or mismanagement of risk by us or key third parties, including fraud risk; our ability to manage brand risk; sensitivity to interest rate environments, rapid increases in interest rates, or changes in the shape of the yield curve; changes in the spread between earning assets and interest-bearing liabilities; regulatory oversight and examination, including changes in capital requirements and our ability to meet such requirements; unexpected changes in liquidity conditions; unexpected changes in regulatory and government policies affecting interest rates and financial markets; changes in accounting policies, practices, or guidance; legislation affecting the entire financial services industry and particularly S&T; developments impacting the stability of the industry and financial institutions, and further disruptions to the economy and the U.S. banking system; outcomes of pending and future litigation and government proceedings; increased price and product/service competition; ability to continuously launch competitive new products and services in a timely and cost-effective manner; internal growth and management of mergers and acquisitions; expected merger synergies may not be realized timely or at all, or integration of acquired businesses may be more difficult, disruptive, or costly than anticipated; cost and expense control; dependence on key customer relationships; material service interruptions or discontinuations by third-party service providers; ability to attract and retain talented executives and other employees; general economic or business conditions, including the strength of regional economies in our markets; ESG practices and disclosures, including climate change, hiring practices, workforce diversity, and racial and social justice issues; deterioration in the housing market and decline in mortgage demand; worsening overall macroeconomic conditions or banking conditions that may require further impairment assessments of goodwill carrying values and could result in write-downs leading to non-cash charges against net income; stability of core deposit base and access to contingency funding sources; renewed volatility in significant portions of global financial and real estate markets that could directly impact our revenues as well as the value of our assets and liabilities, and indirectly affect the overall economy and our ability to obtain capital at required amounts, times, and terms to support future business; and geopolitical tensions and conflicts between nations.
Many of the above factors, as well as others, 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 subsequent filings we make with the U.S. Securities and Exchange Commission. Forward-looking statements are based on information and related beliefs and assumptions available at the time the statements are made. We caution you not to place undue reliance on forward-looking statements, as assumptions, beliefs, expectations, and predictions regarding future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as of the date it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after that date.
Non-GAAP financial measures
In addition to traditional metrics presented in accordance with GAAP, the company’s management uses and includes or references certain non-GAAP financial measures, such as tangible book value, average tangible return on equity, PPNR as a percentage of average assets, efficiency ratio on an FTE basis, tangible common equity to tangible assets ratio, and net interest margin on an FTE basis. The company believes these non-GAAP financial measures assist investors in understanding its underlying operating performance and business and earnings trends, and facilitate comparison with the performance of other companies in the financial services industry. Although the company believes these non-GAAP financial measures aid investors in better understanding its business and performance, they should not be considered substitutes for GAAP measures or more important than financial results determined under GAAP; they may not be directly comparable to non-GAAP measures disclosed by other companies. For additional information regarding these financial measures, see the definitions and reconciliations of GAAP and non-GAAP financial measures.