STBA

S&T Bancorp’s second quarter results were well received by the market, driven by ongoing loan growth, improved net interest margin, and stable deposit funding. Management emphasized the effectiveness of recent commercial banker hires and disciplined underwriting as contributing factors to both the quality and composition of loan expansion. CEO Christopher McComish noted that “C&I balances increased by $79 million,” highlighting the benefit of higher utilization rates and new client wins. The company also reported improved asset quality, with non-performing assets declining and net charge-offs remaining low. Is now the time to buy STBA? Find out in our full research report (it’s free). Revenue: $105.8 million vs analyst estimates of $104.7 million (5.1% year-on-year growth, 1.1% beat) Adjusted EPS: $1.02 vs analyst estimates of $0.92 (11% beat) Market Capitalization: $1.87 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Daniel Cardenas (Raymond James) asked about the sustainability of deposit growth to fund loans. President Dave Antolik affirmed confidence in self-funding capability based on current pipelines and year-to-date trends. David Bishop (Hovde Group) inquired about the influence of new commercial banker hires on C&I growth. Antolik explained that increased line utilization by existing clients was the main growth driver, with new customer penetration also contributing. Kelly Motta (KBW) pressed for details on deposit cost trends and upcoming CD repricing. CFO Mark Kovacic said some benefit from repricing remains for Q3 but expects costs to stabilize or rise modestly thereafter. Matthew Breese (Stephens Inc.) questioned competitive pressures on loan and deposit pricing. Antolik noted discipline in pricing, especially in construction lending, while deposit competition is more acute among smaller banks. Justin Crowley (Piper Sandler) asked about capital management and internal thresholds. Kovacic described a bottoms-up capital planning approach combining regulatory minimums with internal stress testing to ensure appropriate capital cushions. In coming quarters, our analyst team will watch (1) whether S&T Bancorp maintains mid-single-digit loan growth and expands commercial relationships, (2) the extent to which deposit growth continues to fund lending without increased reliance on higher-cost sources, and (3) the stability of net interest margin as CD repricing tailwinds fade. Progress on disciplined expense management and any developments in M&A activity will also be important signposts. S&T Bancorp currently trades at $52.99, up from $49.60 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by significant net interest margin expansion of seven basis points, reaching 3.99% through higher loan yields and an optimized funding mix. The bank achieved positive operating leverage as revenue growth outpaced expense growth, resulting in an improved efficiency ratio of 55.38% for the first half of 2026. Strategic investment in talent led to a 20% year-to-date increase in the commercial banking team, directly contributing to $79 million in C&I loan growth. Management successfully improved funding quality by reducing broker deposits by $100 million during the quarter while maintaining DDA levels at 28% of total deposits. Asset quality improved with non-performing assets decreasing by nearly $10 million, reflecting disciplined underwriting and a high-quality borrower base. Capital management remained a priority, with the bank repurchasing 8% of outstanding shares over the last three quarters to enhance shareholder value. Management expects annualized mid-single-digit loan growth for the remainder of 2026, supported by solid C&I and CRE pipeline activity. Net interest margin is projected to remain stable in the high 3.90s, aided by maturing receive-fixed swaps and fixed-rate loan repricing. The bank anticipates crossing the $10 billion asset threshold in the second half of 2026, with a projected $6 million annual revenue impact starting in mid-2027. Non-interest expenses are targeted at a $58 million quarterly run rate, reflecting a commitment to limit year-over-year expense growth to approximately 3%. The commercial banking team is expected to expand by a total of 30% by year-end 2026 to further deepen customer relationships and market presence. A $1.9 million gain from Visa Class B2 share conversion was largely offset by a $1.7 million loss on a $34 million bond portfolio repositioning designed to improve future yields. Permanent commercial real estate balances declined by $46 million as borrowers moved to non-bank lenders, creating a headwind for total portfolio growth. The Board authorized a new $100 million share repurchase program, though management indicated buyback activity may slow at higher stock price levels. Durbin Amendment impacts are being planned for, with management confident that operating leverage and fee income growth can offset the projected $6 million revenue gap. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while a new $100 million authorization is in place, the 'calculus changes' as the stock price moves higher. Future capital may be redirected toward organic growth or M&A opportunities if buybacks become less accretive at current market levels. Growth was driven by a mix of new client penetration and a rebound in revolving line utilization, which increased from 41% to 44% quarter-over-quarter. The bank is seeing particular strength in Western Pennsylvania and Northeast Ohio following recent strategic hires in those regions. Management remains proactive in strategic conversations, focusing on contiguous markets in Ohio and Pennsylvania. The bank is highly selective, prioritizing cultural fit and strong deposit franchises over simple 'asset plays' that lack core customer deposits. While larger banks remain less aggressive, smaller competitors are creating 'pesky' pricing pressure on CDs and money market accounts. Management expects some repricing benefit on the CD book to persist through Q3 before leveling off.

Image source: The Motley Fool. Thu, July 23, 2026 at 1:00 p.m. ET Chief Executive Officer - Christopher McComish President - Dave Antolik Chief Financial Officer - Mark Kovacic Operator: Thank you. Welcome to the S&T Bancorp second quarter 2026 earnings conference call. After the management's remarks, there will be a question and answer session. Now, I would like to turn the call over to Chief Financial Officer Mark Kovacic. Please go ahead. Mark Kovacic: Great. Thank you. And good afternoon, everyone. And thank you for participating in today's earnings call. Before beginning the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors. The statement provides cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation. A copy of the second quarter 2026 earnings release as well as this earnings supplement slide deck can be obtained by clicking on the materials button in the lower right section of your screen. Also open up a panel on the right where you can download these items. You can also obtain a copy of these materials by visiting our investor relations website at stbankcorp.com. With me today are Chris McCommish, S&T's CEO, and Dave Antolik, S&T's President. I'd now like to turn the call over to Chris. Chris? Christopher McComish: Mark, thank you. And good afternoon, everyone, and thank you for joining us today. We appreciate the analysts and investors being with us. And as always, we look forward to your questions. Before I get into the quarter, I did want to take a minute to recognize the broader momentum we are seeing across S&T. Our financial performance is one important measure of that momentum, but we also continue to see it reflected in the strength of our customer relationships and the trust customers place in our company. That was reinforced this quarter when S&T was named to the Forbes America's Best in-State Banks 2026 list. This is a recognition based upon direct customer feedback across areas such as trust, customer service, financial advice, digital experiences, and overall satisfaction. Also during the quarter we celebrated our 124th year, which means we begin celebrating S&T's 125th year legacy this quarter. This recognition is a timely reminder that our long-term success has been built on those same fundamentals. Serving customers well, investing in our communities and delivering value for our shareholders over time. These commitments have helped us navigate change, strengthen our culture, and position the bank to thrive for the next 125 years and beyond. Now, turning to our financial results, I'll start on slide three. Turning to the quarter, we delivered a very strong performance. Net income was $36.6 million, or $1.20 per diluted share, up 8.5% from the first quarter of '26 and 22.9% from the second quarter of last year. Return metrics were also solid. We reported ROA of 1.49, ROE of 10.375, and a ROTCE of over 14. These results reflected the benefit of higher earnings, continued discipline across the company, and the impact of our share repurchase activity. Our operating performance was also strong. Net interest margin expanded seven basis points from the linked quarter to 3.99, supported by both higher loan yields and a better funding mix. Net interest income increased to $90.4 million compared to $88.4 million in the first quarter and $86.6 million a year ago. Importantly, we're seeing positive year-to-date operating leverage. Through the first six months of the year, revenue growth has outpaced expense growth meaningfully and our efficiency ratio improved to 55.38% compared to 57% for the first six months of 2025. As is noted, asset quality showed improvement during the quarter with low net charge offs of just a million dollars and non-performing assets decreased by almost $10 million to 0.5% of total loans and OREO. On page four, loan growth was $99 million or 5% annualized. On the deposit side, customer deposits were stable in the second quarter after very strong growth in the first quarter. Year to date deposits are up approximately 8% annualized. At the same time, we reduced broker deposits $100 million during the quarter and $180 million year-to-date, which again improved the quality of our funding mix. DDA levels remain at an industry-leading 28% of total deposits, highlighting the value of our relationship-based model and the quality of our core deposit base. We continue to actively manage capital also. As you know, over the past three quarters, we repurchased almost 3.2 million shares, representing 8% of outstanding shares for a total of $133 million. We also got board approval yesterday for reauthorization of another $100 million opportunity. Our strong capital position gives us the flexibility to continue to support organic growth, remain disciplined around capital returns and evaluating strategic opportunities as they arise. In summary, this was a very good quarter for our bank. We delivered meaningful EPS growth, solid returns, favorable asset quality, positive year-to-date operating leverage and continued capital management through share repurchases. I'm going to stop right there, turn it over to Dave. He can talk about asset growth, pipelines, and asset quality. Dave Antolik: Great. Thank you, Chris. And as Chris mentioned in referring to page four, total loans increased by $99 million during Q2, representing approximately 5% annualized growth, driving balances over $8 billion. We're encouraged by both the composition and the quality of this growth. As discussed on previous calls, we are strategically focused on building our C&I capabilities and our investment in talent is beginning to pay off. During the quarter, we increased our C&I banker count. They've increased our total commercial banking team by approximately 20% year to date, with a goal of reaching 30% by year end. These hires strengthen our ability to deepen customer relationships, expand our presence in attractive markets, and support long term loan and deposit growth. The results can be seen in our C&I portfolio. During the quarter, C&I balances increased by $79 million. We saw encouraging signs from our C&I customer base with revolving line utilization increasing from 41 to 44% quarter over quarter. And at the same time, total C&I revolving commitment grew at 6% annualized, demonstrating continued demand from our customers along with increased banker productivity. Permanent commercial real estate balances declined by $46 million, primarily driven by loans that were paid off by non-bank lenders. While this created a headwind to the portfolio growth, it also reflects the continued quality of our borrower base and the attractiveness of these projects to the permanent market to support well-capitalized developers within our footprint. As a result, commercial construction balances increased by $71 million during the quarter. Additionally, total construction commitments increased by $65 million, and the total number of commitments increased by nearly 19% in Q2, providing further evidence of solid customer activity. Looking ahead, our CRE and C&I pipeline activities remain solid and support our expectation for annualized mid-single-digit loan growth for the balance of 2026. Turning to asset quality on page 5, our portfolio continues to perform in line with our expectations, demonstrating our disciplined underwriting approach and ongoing portfolio management efforts. Non-performing assets declined by $9.7 million during the quarter to $40.2 million or 0.5% of total loans plus OREO. Criticized and classified assets remained stable during the quarter while losses were very low, totaling just $1 million during Q2, resulting in a modest provision expense of $1.1 million. Given the continued stability of the loan portfolio, the allowance for credit losses remained essentially unchanged at 1.16% of total loans compared to 1.17% at the end of Q1. And I'll turn the program over to Mark. Mark Kovacic: Hey, thanks Dave. Second quarter net interest income increased by $2 million due to an additional day, combined with improvements on both the yield on earning assets, which dropped four basis points with better commercial performance, and the cost of funding, which was down four basis points due to lower interest bearing deposit rates, and also a better funding mix. We expect relative net interest margin stability around the current high 3.90s level to continue for the next several quarters, and believe we are well positioned should interest rate conditions change. A tailwind from our maturing receive-fixed swaps along with some remaining security fixed rate loan and CD repricing all contribute to stability in the face of heightened loan and deposit pricing competition. Net interest income growth will be supported by improved loan growth. Average loan balances were actually down in the second quarter due to the timing of the growth in the first half, but we expect average loan balance growth going forward. Customer deposit growth momentum remains good even in the face of this increased competition, which should contribute to maintaining spreads and net interest margin rates. Next, on non-interest income, we saw an increase of $1.3 million in the second quarter. Increases were broad-based with improvements in really every category. Debit and credit card activity was higher after a seasonally slower first quarter. Investment services is up with better customer activity and market improvements. The gain on sale is the net of a $1.9 million gain on the conversion of Visa Class B2 shares. We offset that for the most part with a $1.7 million loss on a small $34 million bond portfolio repositioning. The bond repositioning has an earn back of about 1.4 years to identify net interest income for the next several quarters. The other category variance is due to one-time items. We had some partnership income and an unrealized gain on some equities that we own. Our expectations for fees in the second half of 2026 is approximately $14 million per quarter. On non-interest expenses, which increased by $2 million in Q2, the largest variance was in salaries and benefits. And within that, salaries were up due to merit increases going into effect in April. And we also had some higher medical costs as deductibles were met during the first part of the year. Occupancy improvement was impacted by higher seasonal snow removal and utility costs in the first quarter. Marketing reflects just the timing of various promotional efforts. Other variances include tax-related contributions, which are offset by a favorable variance in other taxes. We had some higher T&E and employee recognition along with some recruiting fees. We expect to manage our 2026 non-interest expense year over year to a maximum around 3% increase, which implies a quarterly run rate of around $58 million. For capital, the TCE ratio decreased by 28 basis points this quarter, primarily due to the share repurchases we completed in the second quarter. Again, for the quarter, we repurchased about 1.1 million shares, average price of $44.24, with a total of $47.6 million. Regulatory ratios continue to be very strong with significant excess capital. We are evaluating next steps with respect to our capital management strategy and further buybacks. We're comfortable that even considering additional repurchases that were recently authorized by the Board, we have more than sufficient capital currently and the generation capabilities that will position us well for the environment and enable us to take advantage of organic or inorganic growth opportunities should they arise. At this time, I'd like to turn the call back over to the operator to provide instructions for asking questions. Operator: The floor is now open for questions. If you have a question, please press star 1 on your device. We ask that while asking your question, please pick up your phone and turn off speakerphone for enhanced audio quality. Please remember to unmute your device. Please hold while we poll for questions. Your first question comes from the line of Daniel Cardenas with Raymond James. Your line is now open. Please go ahead. Daniel Cardenas: Thank you. Good afternoon, everybody. How's it going? I apologize if you gave this already. But the loan growth guidance, did we get a, was it mid single digit again? Dave Antolik: Looking for the rest of the year, exactly, Dan, mid single digits. Daniel Cardenas: Okay, all right, great. And in terms of the deposits, I know you called out it's been strong year to date. Still thinking that kind of full year will fund the loan growth? Or are you thinking through the deposit? Yes. Dave Antolik: Yes, we fully anticipate, yes, based on pipelines activity we've seen year to date, we'll be able to self-fund through deposit growth. Daniel Cardenas: Okay, great. And then I appreciate the commentary on the buybacks, but maybe just if you could just put a little more clarity around kind of how you're thinking about that other than, you know, opportunistic like you know you got the 100 million re-up there and then is that so assuming kind of a stable stock price or stable growth in the stock price, you think that's something that you expect to use on a somewhat regular basis over the next several quarters? Obviously, it's dependent in part on the loan growth that comes through. I get that. But just your thoughts on your intention to use that over the next year, I guess, is the authorization. Mark Kovacic: Yes, I mean, it does last for a while. I mean, with the stock price moving higher, I mean, the calculus does change. So we are taking a closer look at that. I think it is something that we'll have opportunity to use over the next year. But again, the dynamics have changed as the prices move higher. Daniel Cardenas: So based on like today's price, I mean, do you think that's something you're still interested in utilizing? Mark Kovacic: Probably not to the same degree as we've been. We've been pretty active the last three quarters. So we would consider or look more closely at potentially stepping that back somewhat at current levels. Daniel Cardenas: Okay. And if that happens and maybe the stock goes higher and it becomes less attractive, what do you think you would do with the capital at that point, absent kind of looking for other M&A opportunities? Christopher McComish: Yes, I think we haven't stopped looking for M&A opportunities and other things to do both organically. So we would continue on that as you know, with the buybacks that we've made, the improvements to returns are meaningful. But again, the kind of incremental improvement that we get from the buybacks begins to get a little bit more constrained. So I think that's one of the things as we go into our planning process for the year, that's something that we'll have to look a lot closer at over the next quarter or so. Daniel Cardenas: All right, understood. Well, thanks for the call, guys. Appreciate it. Nice quarter. Christopher McComish: Okay, thank you. Operator: Your next call comes from the line of David Bishop with Hovde Group. Your line is now open. Please go ahead. David Bishop: Yes, good afternoon. Hey, Chris, you mentioned the ability to attract new commercial bankers, and you called out the C&I growth. Just maybe some color on the increase there, how much represented maybe new client penetration versus existing customers getting more aggressive and utilizing lines and getting more optimistic on lending. Thanks. Dave Antolik: Hey, Dave. Dave Antolik. So the majority of the growth was related to utilization rates increasing. But as I mentioned, we've seen the total revolving commitment growth as well, which would represent additional credit extended to existing clients as well as new customers. So it's a good mix. But the growth in C&I was outsized and a little more than what we'd expected from the quarter because of the increased utilization rates. Which was interesting because utilization had dropped a little bit in Q1, came back some in Q2, pushed a little bit higher. So the math becomes keep the utilization rate, because it's now at a level where it was prior to Q1, keep that consistent, grow the overall customer base, which is the purpose behind hiring these new C&I bankers. David Bishop: Got it. Then I'm not sure if I missed it during the preamble, but positioning for potential rate hikes here in terms of the margin. Just curious thoughts on the puts and takes there as we head into the second half of the year. Thanks. Mark Kovacic: Yes, I think with respect to our rate sensitivity, we feel like within 25, 50 basis points either way that we're fairly neutrally positioned right now. You know, we still have some tailwinds that I mentioned with the swaps and some of the back book repricing that just support us over the next several quarters. So it's hard to know what the Fed's going to do, but we think that we can hold on the margin for the next several quarters at least, in spite of any rate changes that might happen. David Bishop: Great. Thank you. Operator: Your next call comes from the line of Kelly Motta with KBW. Your line is now open. Please go ahead. Kelly Motta: Hi, good afternoon. Maybe sticking on the point of the margin, it was really nice to see deposit costs come down in the quarter, including the rate on CDs. I'm wondering, as you look out from here, is that tailwind kind of leveling off with the upcoming maturities coming up and can you provide any spot color on deposit costs or what the incremental cost of new funding is coming in at? Thank you. Mark Kovacic: Yes, so I mean you're right, we still got some repricing benefit on the CD book that has, you know, maybe a couple more months to run. So we might see a little bit more benefit in Q3, but after that we're pretty much leveled off and replacing at the same cost because that book is fairly short. We're still highly concentrated in that six-month timeframe. So that's why we'll start to see some uptick potentially after Q3 in deposit costs as there's still some repricing and some exception pricing being made. So to the extent we can hold on to the good mix that we have, we shouldn't see it move too much going forward. Kelly Motta: Got it. That's helpful. Maybe one last question from me, just refreshing Durbin. It looks like you're $9.94 billion in assets, very flat quarter over quarter. It seems like given your kind of mid single digit growth outlook on loans, you will potentially run through that. Is that still a good assumption or do you have some levers here that if you don't get a deal, you can plan to navigate on to a run on an organic basis? Thank you. Mark Kovacic: I mean, given the trajectory that Dave described on loan side, you know, if we're successful with that, you know, we would anticipate crossing here in the second half. So as long as that comes through, we will go. In the first half of the year, we saw a decrease in loan balances in the first quarter. That sat in cash for the most part at the end of the first quarter. So in the second quarter, even though we had loan growth, we got a right side of the cash balance. So it looked like we were flat. It's really back to the balance sheet actually being probably down under the hood in the first quarter, and it's just kind of bounced back here in the second quarter. But our trajectory should take us over $10 billion in the second half. Christopher McComish: Kelly, it's Chris. As we've talked about before, we're talking about a little over $6 million doesn't impact us for, assuming we went over at 12/31, it wouldn't impact, half of that would hit in '27, the other full amount of that would hit in '28, and our job is to lead the company through that, and we feel very confident that we can. Operator: Your next call comes from the line of Daniel Cardenas with Brean Capital. Your line is now open. Please go ahead. Daniel Cardenas: So just kind of following up on Kelly's question with the crossing of the $10 billion threshold and the $6 million gap that would be created there. How long do you think it would take your new hires to kind of fill that gap? Do you think that can kind of happen in '28 or is that going to take a little bit longer for that to really occur? Christopher McComish: Well, yes, I mean, the new hires and the growth of the balance sheet is just, you know, just one lever that we would pull. You know, we're not going to take on additional risk from an asset growth to have that overcome. So we're going to remain disciplined. We'll continue to look at, you know, expense saving opportunities that could make up some of that and generating other forms of fee income. You know, if you think about an $8 billion balance sheet on either side of the loan and deposit makeup, you're talking about a base to make up $6 million annualized in net interest income. And so we just feel confident that we're going to be able to pull any number of levers in order to overcome that kind of number. We've made $36 million this quarter, quite consistent with the growth that we're seeing. And so we don't want to do anything that is overly aggressive to make up that number. We believe we can do it through what we've shown over time and that's the effective running of the company. You look at the operating leverage that we have right now. We grew revenue, net interest income, around 5% first six months of the year. Expenses were closer to 1%. That operating leverage is pretty significant, and that can translate to making up those kinds of savings. Mark Kovacic: Just to clarify, we had a question come in on the timing of the impact. If we crossed here in the second half, that would start in the second half of '27. Daniel Cardenas: Okay. Got it. Perfect. And then just returning to loan growth in the quarter, what was the impact from pay downs and pay offs in the quarter? Dave Antolik: Well, we did see that commercial real estate permanent loan bucket decline, as you may know, the CMBS market is relatively active in the permanent insurance market, but we continue to fund through on our construction loans in support of those same borrowers. So based on what we see from existing commitments and demand in the market, we believe that kind of pace can be continued but that pressure that headwind from the permanent market is going to continue to be something that we're going to face throughout the balance of the year and certainly in the next year. The paydowns were a little bit lighter than typical in the quarter. So we did get a little bit of a benefit there in terms of the net growth by having slightly lighter, but looking ahead, we don't see that as being a trend. Daniel Cardenas: Okay, got it. Perfect. All right. All my other questions have been asked and answered. Thank you, guys. Dave Antolik: Thanks, Dan. Operator: Your next question comes from the line of Matthew Breese with Stephens Inc. Your line is now open. Please go ahead. Matthew Breese: Hey, good afternoon guys. Maybe we could just touch on pipeline, pipeline yields, spreads between C&I and commercial real estate and curious how competitive dynamics are playing out in your markets. It just sounds like elsewhere in kind of the mid-Atlantic things are heating up competition wise. I'm curious what you're experiencing. Dave Antolik: Yes, if I look at just strictly approved pipeline from first quarter versus second quarter, we're up modestly in both CRE and C&I, more so in the CRE space as a recognition of those hirings that we've made. ABL pipeline activity that's headed our way that could help us with incremental growth. Turn to consumer, you know, mortgages, similar to where it was Q1. And I would expect mortgage activity to look in Q2 similar to how it did in Q1. And then looking at consumer home equity, I would expect Q3 based on pipelines today to show similar growth, maybe a little higher in Q3 than we saw in Q2. So kind of all those things combined give us that outlook to a guidance of mid single digit total loan growth for the balance of the year. Matthew Breese: And how are yields and spreads holding up? Dave Antolik: Yields, they're holding up. I mean, there's still competitive pressure, but so far so good. We're disciplined relative to how we price and the market, particularly in the areas where we see the most activity, construction, there's still a reasonable return based on the risk that we take in that book. The market's willing to accept that pricing. We haven't seen any significant pressure there. We've seen some additional pressure in the deposit book. I mean, you're seeing CD pricing and money market pricing competition become more aggressive, particularly from smaller banks. Our larger bank brethren aren't as aggressive when it comes to deposit rates, but the smaller bank competition tend to be a little pesky when it comes to pricing deposits. Matthew Breese: Yes, maybe to put a finer point on it, I mean, educated guess, are your pipeline yields still better than 6.50%? Dave Antolik: No. Overall, the new loan rate over the quarter was just over 6%. I anticipate that the pipeline probably reflects a very similar sort of rate. Matthew Breese: Got it, okay. Chris, I know this comes up every quarter now especially as you kind of push towards 10 billion, but how are M&A discussions coming along? Are conversation activities mimicking overall deal volumes that we're seeing in the space, which is pretty slow? Christopher McComish: Yes, I would say conversation activities haven't slowed down from the standpoint of thinking strategically about partnerships. I think those activities continue to be at an acceptable pace and I haven't seen any significant decline in those sorts of things. And so we continue to remain in the market and proactive with potential partners as we do believe it's an opportunity for us down the road. Matthew Breese: Are there a number of deals that since you stepped into the seat that you've passed on and maybe elaborate on whether or not that kind of makes you a more selective buyer than we might normally see? Christopher McComish: Yes, I'm not going to go there comparing myself with others or ourselves with others, but yes there are a number of deals that we've chosen not to move forward with. We think about what is important to our company: cultural fit, business mix, the makeup of the company. One of the things that we've been working on art over the past few years is continuing to grow and enhance and build that deposit franchise. So some of the targets that we look at may be more of an asset play than a customer deposit play, and something like that may not be as appealing to us as it would be to somebody else. And then we also, as we've talked about in other quarters, Matt, we think about geographic expansion and those contiguous markets south and east of us and through the state of Ohio are all very attractive to us. So we're not slowing down in the number of conversations and that remains active. But yes, we've looked at a number of things that we've chosen not to do. Matthew Breese: Great. I really appreciate that. I'll leave it there. Thank you. Christopher McComish: Sure thing. Operator: Your next call comes from the line of Justin Crowley with Piper Sandler. Your line is now open. Please go ahead. Justin Crowley: Hey, good afternoon, guys. On the loan growth, in particular C&I, I know you folks have been talking about that as a focus for a while, and of course for this quarter, and I know it can be a lumpy area, but can you talk about expectations there going forward, and perhaps just any comments on if there are any specialty groups or certain geographies driving that growth? Dave Antolik: So Justin, if you look at where we've hired, think about this more geographically, because we're pretty well diversified when it comes to industry, but geographically the majority of the hires were in western Pennsylvania. So that's where we're seeing activity. We've also made a number of hires in northeast Ohio where we're seeing some increase to pipeline. We also added one C&I banker in Eastern PA. So pretty well diversified both geographically and again looking at industry and concentration, there's nothing meaningfully that's moved nor do we anticipate that. So we're relatively opportunistic making sure that we have the right people in place, disciplined underwriters, and portfolio managers. Christopher McComish: One area that Dave touched on earlier was our asset based lending group that is seeing nice activity and pipeline looks solid there as part of the growth equation as we move. Justin Crowley: Okay, got it. And then I guess just pivoting a little, just sort of related to the conversation on buybacks, what are sort of your broader thoughts on capital levels where they are? Certainly still very strong, but of course down from the peak, is there a certain ratio or ratios where you look at targeting a certain threshold? What does that thought process look like? Mark Kovacic: Yes, and we take a combined sort of bottoms-up approach to try to build at least some levels that, above which we're comfortable at, based on regulatory environment plus our internal capital stress testing that we do to see how much capital we need as a cushion, and then making sure that we have that plus. And we still think we have some room to reduce that. So the decision really becomes, how do we manage that better. It was so large that buybacks I think made sense for that first round of it. But as we're starting to utilize that more, some other avenues like different types of asset growth and certainly the M&A piece comes into play. So we have in terms of some internal targets, but we still feel like we have space above that to maneuver. Justin Crowley: Okay, and I don't know if you're really able to quantify that much further, but do you look at regulatory ratios in terms of staying above a certain level? Mark Kovacic: Yes, I mean that's the part of the building blocks. We would start with the regulatory definitions and then add a cushion to that and then build upon that with what our testing is telling us that we would need to cover an extreme event in the market. And that becomes kind of the floor of the target range for us. Justin Crowley: Okay, got it. And then one just quick last one, kind of like a modeling question, but just on expenses, I think you threw out the $58 million number in terms of kind of the right way to think about the base going forward. And so just kind of curious what is going to drive that lower base from where you were in the second quarter, just as we kind of think about the next few periods, modeling ahead. Mark Kovacic: Yes, I mean, quarter to quarter, there's always a little bit of lumpiness on the margin. So this particular quarter, there were a couple of things that don't necessarily repeat that were slightly higher. The main drivers of expense are the amount of people that we have and how much we spend. We anticipate that to be fairly consistent. So we think, just given the minor lumpiness of expenses, just generally that $58 million level is something we should be able to manage to for at least the rest of this year. Justin Crowley: Okay, got it. Great. I will leave it there. Thank you guys so much. Operator: Thank you. There are no further questions at this time. I would now like to turn the call over to Chief Executive Officer Chris McCommish for closing remarks. Christopher McComish: Well, thanks everybody for being on the call. I know these are busy days for all of you with the number of earnings announcements, but we certainly appreciate your engagement with our company and your very good questions. Have a great rest of the day and we look forward to talking to you soon. Thanks. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. S&T Bancorp (STBA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Net Income: $36.6 million, or $1.02 per diluted share, up 8.5% from Q1 2026 and 22.9% from Q2 2025. Return on Assets (ROA): 1.49% Return on Equity (ROE): 10.375% Return on Tangible Common Equity (ROTCE): Over 14% Net Interest Margin: Expanded 7 basis points to 3.99% Net Interest Income: Increased to $90.4 million from $88.4 million in Q1 2026 and $86.6 million in Q2 2025. Efficiency Ratio: Improved to 55.38% from 57% for the first six months of 2025. Loan Growth: Increased by $99 million, or 5% annualized. Customer Deposits: Stable in Q2, up approximately 8% annualized year-to-date. Broker Deposits: Reduced by $100 million during the quarter and $180 million year-to-date. Non-Performing Assets: Decreased by $9.7 million to $40.2 million, or 0.5% of total loans plus OREO. Net Charge-Offs: $1 million during Q2. Allowance for Credit Losses: 1.16% of total loans, compared to 1.17% at the end of Q1. Share Repurchases: 1.1 million shares repurchased at an average price of $44.24, totaling $47.6 million. Non-Interest Income: Increased by $1.3 million in Q2. Non-Interest Expenses: Increased by $2 million in Q2, with a focus on salaries and benefits. Warning! GuruFocus has detected 8 Warning Signs with MNSB. Is STBA fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. S&T Bancorp Inc (NASDAQ:STBA) reported a strong financial performance with net income of $36.6 million, up 8.5% from the previous quarter and 22.9% year-over-year. The company achieved a return on assets (ROA) of 1.49% and a return on equity (ROE) of 10.375%, reflecting solid profitability. Net interest margin expanded by 7 basis points to 3.99%, supported by higher loan yields and an improved funding mix. Asset quality improved with low net charge-offs of $1 million and a decrease in non-performing assets by $10 million. S&T Bancorp Inc (NASDAQ:STBA) was named to the Forbes America's Best In-State Banks 2026 list, highlighting strong customer satisfaction and trust. Permanent commercial real estate balances declined by $46 million due to loans being paid off by non-bank lenders. The company anticipates potential pressure on deposit costs after Q3 as CD repricing benefits level off. S&T Bancorp Inc (NASDAQ:STBA) faces competitive pressure in deposit pricing, particularly from smaller banks. The company is approaching the $10 billion asset threshold, which could lead to increased regulatory costs. There is uncertainty regarding the impact of potential interest rate changes on net interest margin stability. Q: What is the loan growth guidance for S&T Bancorp Inc for the rest of the year? A: David Antolik, President, confirmed that the guidance is for mid-single-digit loan growth. Q: How does S&T Bancorp plan to fund loan growth through deposits? A: David Antolik, President, stated that based on pipeline activity seen year-to-date, they will be able to self-fund through the deposit process. Q: Can you provide more clarity on the share buyback strategy? A: Mark Kochvar, CFO, mentioned that with the stock price moving higher, the calculus changes, and they may not be as active in buybacks as they have been in the last three quarters. They are evaluating next steps with respect to capital management strategy. Q: How is S&T Bancorp positioning itself for potential interest rate hikes? A: Mark Kochvar, CFO, explained that they feel neutrally positioned within a 25-50 basis point range and expect to maintain net interest margin stability over the next several quarters despite potential rate changes. Q: What are the expectations for deposit costs moving forward? A: Mark Kochvar, CFO, indicated that while there might be some benefit in Q3 from repricing, deposit costs could see an uptick after Q3 as the CD book is fairly short and concentrated in the six-month timeframe. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

For the quarter ended June 2026, S&T Bancorp (STBA) reported revenue of $105.24 million, up 5.2% over the same period last year. EPS came in at $1.02, compared to $0.83 in the year-ago quarter. The reported revenue represents a surprise of +0.67% over the Zacks Consensus Estimate of $104.54 million. With the consensus EPS estimate being $0.92, the EPS surprise was +10.87%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how S&T Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio (FTE): 55.5% versus 55.6% estimated by three analysts on average. Net interest margin (FTE) (non-GAAP): 4% versus the three-analyst average estimate of 3.9%. Average interest-earning assets: $9.15 billion versus the three-analyst average estimate of $9.27 billion. Total Noninterest income: $14.86 million versus $13.89 million estimated by three analysts on average. Net Interest Income: $90.38 million compared to the $90.7 million average estimate based on two analysts. Net interest income (FTE) (non-GAAP): $90.96 million compared to the $90.86 million average estimate based on two analysts. Debit and credit card: $4.7 million versus the two-analyst average estimate of $4.21 million. Service charges on deposit accounts: $4.29 million versus the two-analyst average estimate of $4.12 million. Investment services and trust: $3.56 million versus the two-analyst average estimate of $3.2 million. Noninterest income- Other: $2.14 million versus $1.91 million estimated by two analysts on average. View all Key Company Metrics for S&T Bancorp here>>> Shares of S&T Bancorp have returned +2.1% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report S&T Bancorp, Inc. (STBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in S&T Bancorp, Inc.? Here are five stocks we like better. S&T Bancorp posted stronger second-quarter results, with net income of $36.6 million, or $1.02 per share, up from both the prior quarter and a year earlier. Net interest income and margin also improved, while management said earnings benefited from share repurchases and disciplined execution. Loan growth was led by commercial activity, with total loans rising $99 million and C&I balances increasing $79 million. Management reiterated expectations for mid-single-digit loan growth for the rest of 2026, supported by solid pipeline activity and deposit growth that should self-fund lending. Asset quality improved and capital returned to shareholders remained active, as non-performing assets fell to $40.2 million and charge-offs stayed modest. The company also repurchased nearly 3.2 million shares over the past three quarters and approved a new $100 million buyback authorization. S&T Bancorp (NASDAQ:STBA) reported higher second-quarter 2026 earnings, improved net interest income and stronger asset quality, while management said the bank remains positioned for mid-single-digit loan growth over the rest of the year. Chief Executive Officer Chris McComish said net income was $36.6 million, or $1.02 per diluted share, up 8.5% from the first quarter of 2026 and 22.9% from the second quarter of 2025. The company reported return on assets of 1.49%, return on equity of 10.375% and return on tangible common equity of more than 14%. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? McComish said the quarter reflected “higher earnings, continued discipline across the company, and the impact of our share repurchase activity.” He also noted that S&T was named to the Forbes America’s Best-in-State Banks 2026 list, a recognition he said was based on customer feedback across areas including trust, customer service, financial advice, digital experiences and overall satisfaction. Net interest income rose to $90.4 million, compared with $88.4 million in the first quarter and $86.6 million a year earlier. McComish said the net interest margin expanded seven basis points from the linked quarter to 3.99%, supported by higher loan yields and a better funding mix. → 3 Photonics Companies Making Quantum Tech Possible Chief Financial Officer Mark Kochvar said second-quarter net interest income benefited from an additional day in the quarter, a four-basis-point increase in earning asset yields and a four-basis-point decline in funding costs. He attributed the lower funding cost to reduced interest-bearing deposit rates and an improved funding mix. Kochvar said management expects “relative net interest margin stability” around the current high-3.90% level over the next several quarters. He cited tailwinds from maturing receive-fixed swaps, as well as repricing in securities, fixed-rate loans and certificates of deposit, though he also acknowledged heightened loan and deposit pricing competition. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off During the question-and-answer session, Kochvar said the company is “fairly neutrally positioned” for interest rate moves within a range of 25 to 50 basis points, and possibly more, in either direction. President Dave Antolik said total loans increased by $99 million during the quarter, representing approximately 5% annualized growth and bringing balances to more than $8 billion. He said the company was encouraged by both the composition and quality of the growth. Commercial and industrial balances increased by $79 million during the quarter. Antolik said revolving line utilization among C&I customers increased to 44% from 41% in the prior quarter, while total C&I revolving commitments grew at a 6% annualized pace. Management said S&T has been investing in its commercial banking team, increasing the number of C&I bankers during the quarter and expanding the total commercial banking team by approximately 20% year to date. Antolik said the company’s goal is to reach 30% growth in the team by year-end. Permanent commercial real estate balances declined by $46 million, which Antolik attributed primarily to loans paid off by non-bank lenders. At the same time, commercial construction balances increased by $71 million. Total construction commitments rose by $65 million, and the number of commitments increased by nearly 19% in the quarter. Antolik said C&I and CRE pipeline activity remains solid and supports management’s expectation for annualized mid-single-digit loan growth for the balance of 2026. In response to an analyst question, management said the bank expects deposit growth to self-fund loan growth. McComish said customer deposits were stable in the second quarter after strong growth in the first quarter. Year-to-date deposits are up approximately 8% annualized. The company reduced brokered deposits by $100 million during the quarter and by $180 million year to date, which McComish said improved the quality of the funding mix. Demand deposit accounts remained at 28% of total deposits, a level McComish described as industry-leading and reflective of S&T’s relationship-based model and core deposit base. Kochvar said the company may see a bit more benefit from CD repricing in the third quarter, but said that tailwind is expected to level off afterward. He added that S&T is seeing more aggressive competition in CD and money market pricing, particularly from smaller banks. Asset quality improved during the quarter. Antolik said non-performing assets declined by $9.7 million to $40.2 million, or 0.5% of total loans plus other real estate owned. Criticized and classified assets remained stable. Net charge-offs totaled $1 million in the quarter, and provision expense was $1.1 million. The allowance for credit losses was essentially unchanged at 1.16% of total loans, compared with 1.17% at the end of the first quarter. Antolik said the portfolio is performing in line with management’s expectations, reflecting what he described as disciplined underwriting and ongoing portfolio management. McComish said S&T has repurchased nearly 3.2 million shares over the past three quarters, representing 8% of outstanding shares, for a total of $133 million. The board approved a new $100 million repurchase authorization. Kochvar said S&T repurchased about 1.1 million shares in the second quarter at an average price of $44.24, totaling $47.6 million. The tangible common equity ratio declined by 28 basis points during the quarter, primarily because of the repurchases, but management said regulatory capital ratios remain strong. Asked about the new buyback authorization, Kochvar said the company could use it over the next year, but noted that the stock price has moved higher and “the calculus does change.” He said buybacks may be stepped back somewhat at current levels compared with the activity of the past three quarters. Management also discussed the bank’s approach to potential M&A. McComish said S&T continues to have strategic conversations and remains proactive with potential partners. He said the company is focused on cultural fit, business mix, deposit franchise strength and geographic opportunities in contiguous markets south and east of its footprint and in Ohio. Kochvar said second-quarter non-interest income increased by $1.3 million, with improvements across categories. He said the gain on sale included a $1.9 million gain from the conversion of Visa Class V2 shares, offset in large part by a $1.7 million loss tied to a $34 million bond portfolio repositioning. He said the repositioning has an earnback period of about 1.4 years and is expected to add $300,000 per quarter to net interest income for the next several quarters. Non-interest expenses increased by $2 million in the quarter. Kochvar said the largest variance came from salaries and benefits, including April merit increases and higher medical costs. He said S&T expects to manage 2026 non-interest expense to an approximately 3% year-over-year increase, implying a quarterly run rate of about $58 million. Management also addressed the potential crossing of the $10 billion asset threshold. Kochvar said the current trajectory could take the company above $10 billion in the second half of 2026. McComish said the estimated annualized impact would be a little over $6 million, with half of that beginning in 2027 if the company crossed the threshold at year-end, and the full amount in 2028. S&T Bancorp, Inc is a bank holding company headquartered in Indiana, Pennsylvania, serving as the parent of S&T Bank. Established as a banking organization in 1902 with the holding company formation following in the early 1980s, S&T Bancorp has built its reputation on delivering community-oriented financial services. The company operates under the NASDAQ ticker STBA, maintaining a focus on personalized banking solutions and local decision-making. The company's main business activities encompass a full suite of retail and commercial banking products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "S&T Bancorp Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

S&T Bancorp (STBA) came out with quarterly earnings of $1.02 per share, beating the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.83 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.87%. A quarter ago, it was expected that this holding company for S&T Bank would post earnings of $0.87 per share when it actually produced earnings of $0.94, delivering a surprise of +8.05%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. S&T Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $105.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.67%. This compares to year-ago revenues of $100.07 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. S&T Bancorp shares have added about 26.1% since the beginning of the year versus the S&P 500's gain of 9.6%. While S&T Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for S&T Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.94 on $106.88 million in revenues for the coming quarter and $3.75 on $421.63 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Capital Bancorp (CBNK), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -2.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Capital Bancorp's revenues are expected to be $66.9 million, up 10.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report S&T Bancorp, Inc. (STBA) : Free Stock Analysis Report Capital Bancorp, Inc. (CBNK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

INDIANA, Pa., July 23, 2026 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $36.6 million for the second quarter of 2026 compared to $35.1 million for the first quarter of 2026 and $31.9 million for the second quarter of 2025. Diluted earnings per share was $1.02 for the second quarter of 2026, an increase of $0.08, or 8.5%, compared to $0.94 for the first quarter of 2026 and an increase of $0.19, or 22.9%, compared to $0.83 for the second quarter of 2025. Second Quarter of 2026 Highlights: Solid return metrics with return on average assets (ROA) of 1.49%, return on average equity (ROE) of 10.37% and return on average tangible shareholders' equity (ROTE) (non-GAAP) of 14.15% compared to ROA of 1.44%, ROE of 9.77% and ROTE (non-GAAP) of 13.22% for the first quarter of 2026. Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.89% compared to 1.87% for the first quarter of 2026. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) expanded 7 basis points to 3.99% compared to 3.92% in the first quarter of 2026. Total portfolio loans increased $99.0 million, or 5.0% annualized, compared to March 31, 2026. Total deposits decreased $99.1 million due to lower brokered deposits of $100.4 million compared to March 31, 2026. Customer deposits were stable in the second quarter, following solid growth in the first quarter of 2026 with year-to-date growth of $307.7 million, or 8.0% annualized. Net charge-offs were only $1.0 million, or 0.05% of average loans, compared to net charge-offs of $1.7 million, or 0.09% of average loans, in the first quarter of 2026. Nonperforming assets (NPAs) decreased $9.7 million to $40.2 million, or 0.50% of total loans plus other real estate owned (OREO), compared to $49.9 million, or 0.63%, at March 31, 2026. Actively managing capital with 1,074,924 shares repurchased at an average price of $44.24 for $47.6 million. "We delivered another strong quarter driven by disciplined execution of our strategy," said Chris McComish, chief executive officer. "Our results reflected solid earnings and returns, good loan growth, stable deposits following strong first-quarter growth and continued favorable asset quality. These results highlight the strength of our customer relationships, the dedication of our people and our ability to create long-term value for our shareholders." Net Interest Income Net interest income was $90.4 million in the second quarter of 2026 compared to $88.4 million in the first quarter of 2026. NIM (FTE) (non-GAAP) increased 7 basis points to 3.99% compared to 3.92% in the prior quarter. The yield on average interest-earning assets increased 4 basis points to 5.64% compared to 5.60% in the first quarter of 2026 primarily due to a higher yield on loans. Total interest-bearing liability costs decreased 4 basis points to 2.50% compared to 2.54% in the first quarter of 2026 mainly due to a better funding mix. Average brokered deposits decreased $146.2 million while average interest-bearing customer deposits increased $119.8 million compared to the first quarter of 2026. Asset Quality The allowance for credit losses, or ACL, was unchanged at $93.3 million, or 1.16% of total portfolio loans, at June 30, 2026 compared to $93.3 million, or 1.17%, at March 31, 2026. The provision for credit losses was $1.1 million for the second quarter of 2026 compared to $1.3 million in the first quarter of 2026. Net loan charge-offs were $1.0 million, or 0.05% of average loans, compared to $1.7 million, or 0.09% of average loans, in the first quarter of 2026. NPAs decreased $9.7 million to $40.2 million, or 0.50% of total loans plus OREO, compared to $49.9 million, or 0.63%, at March 31, 2026. Noninterest Income and Expense Noninterest income increased $1.3 million to $14.9 million in the second quarter of 2026 compared to $13.6 million in the first quarter of 2026. Higher noninterest income related to a $0.4 million increase in debit and credit card fees due to the first quarter of 2026 being seasonally lower and a $0.3 million increase in other income primarily related to partnership income and unrealized gains on equity securities. Additionally, during the second quarter of 2026 there was a $0.2 million net gain on the sale of securities resulting from a $1.9 million gain related to Visa Class B-2 common stock conversion, which was mostly offset by a $1.7 million loss related to the repositioning of securities into longer duration, higher yielding securities. Noninterest expense increased $2.0 million to $58.7 million in the second quarter of 2026 compared to $56.7 million in the first quarter of 2026. Salaries and employee benefits increased $1.3 million primarily related to annual merit increases and higher medical costs. Other noninterest expense increased $1.0 million primarily due to normal fluctuations across several expense categories and timing-related items. Financial Condition Total assets were $9.9 billion at both June 30, 2026 and March 31, 2026. Cash and due from banks decreased $121.2 million related to an increase in loans compared to March 31, 2026. Total portfolio loans increased $99.0 million compared to March 31, 2026 with an increase in the commercial loan portfolio of $104.2 million and a decrease in the consumer loan portfolio of $5.2 million. The increase in the commercial loan portfolio was due to an increase in commercial and industrial of $79.0 million and an increase in commercial construction of $71.4 million, offset by a decline in commercial real estate of $46.2 million compared to March 31, 2026. Total deposits decreased $99.1 million due to lower brokered deposits of $100.4 million compared to March 31, 2026. Customer deposits were stable in the second quarter, following solid growth in the first quarter of 2026 with year-to-date growth of $307.7 million, or 8.0% annualized. Money market decreased $80.8 million, noninterest bearing deposits decreased $16.9 million, interest-bearing demand decreased $14.8 million and savings decreased $1.2 million, offset by an increase in certificates of deposit of $14.7 million, compared to March 31, 2026. The decrease in money market of $80.8 million is net of a decline in brokered money market deposits of $100.4 million offset by an increase in customer money market deposits of $19.6 million compared to March 31, 2026. Total borrowings increased $125.0 million to $275.3 million compared to $150.3 million at March 31, 2026 due to a decrease in brokered deposits and share repurchases. Capital During the second quarter of 2026, 1,074,924 shares were repurchased at an average price of $44.24 per share for $47.6 million. Total share repurchases over the past three quarters were 3,169,294 shares, representing 8.3% of outstanding shares, at an average price of $42.09 per share totaling $133.4 million. S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies. New Share Repurchase Plan Authorization The board of directors authorized a new $100 million share repurchase program at its meeting held July 22, 2026. The new program will replace the existing share repurchase program effective July 27, 2026, and is set to expire August 31, 2027. The remaining capacity under the existing share repurchase program was terminated. Conference Call S&T will host its second quarter 2026 earnings conference call live via webcast at 1:00 pm ET, Thursday, July 23, 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 and LinkedIn. 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. Net Interest Margin (FTE) (non-GAAP)(10) 3.99 %3.92 %3.88 % View original content to download multimedia:https://www.prnewswire.com/news-releases/st-bancorp-inc-announces-second-quarter-2026-results-302832678.html