STBA · S&T Bancorp, Inc.

S&T Bancorp delivered a strong first quarter 2026, with net income rising to $35.1 million from $34.0 million in the prior quarter. Diluted EPS of $0.94 represented a 5.6% sequential increase and an 8.0% increase year-over-year. The earnings growth was supported by improved credit costs and controlled expenses, partially offset by a modest decline in net interest income. Net interest income decreased to $88.4 million from $91.0 million in the fourth quarter of 2025, attributed to two fewer days in the quarter and the absence of a prior-year interest recovery. However, the net interest margin (FTE) remained robust at 3.92%, declining only 7 basis points, as deposit costs fell 12 basis points, mitigating the impact of lower asset yields. Asset quality metrics showed notable improvement. Nonperforming assets decreased by $5.7 million to $49.9 million, or 0.63% of total loans plus OREO. Net charge-offs were significantly lower at $1.7 million (0.09% of average loans) compared to $11.0 million in the prior quarter. The allowance for credit losses remained stable at 1.17% of total portfolio loans. Balance sheet trends highlighted strong deposit gathering, with total deposits increasing $226.4 million, driven by core customer deposit growth of $306.5 million. This growth facilitated a reduction in higher-cost wholesale funding, with total borrowings declining $115.0 million. The company actively returned capital to shareholders, repurchasing 1.1 million shares for $49.6 million during the quarter, with $50.4 million remaining under the existing repurchase authorization.