S&T Bancorp reported first-quarter 2026 net income of $35.1 million, up from $34.0 million in the fourth quarter of 2025 and $33.4 million in the first quarter of 2025. Diluted earnings per share rose to $0.94 from $0.89 in the prior quarter and $0.87 a year earlier.
Return on average assets improved to 1.44% from 1.37% in the fourth quarter, and return on average equity increased to 9.77% from 9.13%. Return on average tangible shareholders’ equity climbed to 13.22% from 12.30%. Pre-provision net revenue to average assets slipped to 1.87% from 1.95%, while net interest margin narrowed to 3.92% from 3.99%.
Net interest income fell to $88.4 million from $91.0 million in the prior quarter. Average interest-earning assets increased $57.0 million to $9.2 billion, but the yield on those assets declined 14 basis points to 5.60%. Interest-bearing liability costs dropped 12 basis points to 2.54%, helped by lower deposit costs and reduced brokered deposits and borrowings.
Total deposits increased $226.4 million from December 31 to $9.9 billion, driven by $306.5 million of customer deposit growth, which offset an $80.1 million decline in brokered deposits. Noninterest-bearing deposits rose $112.8 million, money market balances increased $67.8 million, savings deposits grew $21.1 million, and certificates of deposit were up $30.7 million. Interest-bearing demand deposits fell $6.0 million.
Total portfolio loans declined $112.6 million. Commercial loans fell $79.0 million, including a $94.7 million drop in commercial real estate and an $8.3 million decline in commercial and industrial loans, partly offset by a $23.9 million increase in commercial construction. Consumer loans decreased $33.6 million, led by declines of $20.6 million in residential mortgage, $8.9 million in consumer construction, and $7.3 million in installment and other consumer loans.
Credit quality improved sharply. Net charge-offs dropped to $1.7 million, or 0.09% of average loans, from $11.0 million, or 0.54%, in the prior quarter. The provision for credit losses fell to $1.3 million from $5.7 million. Nonperforming assets decreased $5.7 million to $49.9 million, or 0.63% of total loans plus other real estate owned, from $55.6 million, or 0.69%, at year-end. The allowance for credit losses was $93.3 million, up slightly from $93.2 million.
Noninterest income declined to $13.6 million from $14.3 million, while noninterest expense edged down to $56.7 million from $57.2 million. Salaries and benefits decreased $1.3 million.
Cash and due from banks increased $175.6 million as deposits rose and loans fell. Total borrowings decreased $115.0 million to $150.3 million. During the quarter, the company repurchased 1,146,100 shares for $49.6 million at an average price of $43.30. Following these announcements, the company's shares moved 0.17%, and are now trading at a price of $41.24. If you want to know more, read the company's complete 8-K report here.
