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S&T Bancorp Inc Beats Expectations

S&T Bancorp reported third-quarter 2026 net income of $38.6 million, up from $36.6 million in the second quarter and $35.0 million a year earlier.

Diluted earnings per share reached a record $1.09, rising 7 cents, or 6.9%, from $1.02 in the prior quarter and 18 cents, or 19.8%, from $0.91 in the third quarter of 2025. The company said the increase reflected higher net income and share repurchases equal to 8.3% of outstanding shares since Sept. 30, 2025.

Return on average assets improved to 1.55% from 1.49% in the second quarter. Return on average equity increased to 10.84% from 10.37%, while return on average tangible shareholders’ equity rose to 14.81% from 14.15%.

Pre-provision net revenue to average assets climbed 12 basis points to 2.01% from 1.89%, and net interest margin expanded 7 basis points to 4.06% from 3.99%.

Net interest income increased to $93.1 million from $90.4 million. The yield on average interest-earning assets rose 9 basis points to 5.73% from 5.64%, while the yield on average loans increased 6 basis points to 5.95% from 5.89%. Average total loans grew $61.2 million to $8.1 billion, and average interest-bearing deposits increased $31.8 million to $5.9 billion.

Interest-bearing liability costs moved up 3 basis points to 2.53% from 2.50%.

Net charge-offs increased to $2.1 million, or 0.10% of average loans, from $1.0 million, or 0.05%, in the second quarter. The provision for credit losses rose to $1.4 million from $1.1 million.

Nonperforming assets fell $3.7 million to $36.5 million, or 0.45% of total loans plus other real estate owned, from $40.2 million, or 0.50%, at June 30.

Noninterest income was $14.7 million, down slightly from $14.9 million. Noninterest expense declined $1.1 million to $57.6 million from $58.7 million, and the efficiency ratio improved to 53.23% from 55.52%.

Total assets were unchanged at $9.9 billion. Total portfolio loans slipped $4.4 million, with commercial loans down $11.9 million and consumer loans up $7.5 million. Within commercial loans, commercial and industrial balances fell $51.1 million and commercial construction dropped $25.6 million, while commercial real estate rose $64.8 million.

Deposits declined $22.2 million to $9.5 billion, led by a $32.6 million drop in noninterest-bearing deposits and an $8.3 million decline in savings deposits, partly offset by a $15.0 million increase in certificates of deposit.

Borrowings decreased $60.0 million to $215.3 million from $275.3 million.

Since share repurchases began in the fourth quarter of 2025, S&T has bought back 3,169,294 shares for $133.4 million at an average price of $42.09 per share. As a result of these announcements, the company's shares have moved -0.77% on the market, and are now trading at a price of $48.86. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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