S&T Bancorp, Inc.

Reported second-quarter 2026 net income was $36.6 million, or $1.20 per diluted share, up 8.5% sequentially and 22.9% year over year. Return on assets was 1.49%, return on equity was 10.375%, and ROTCE was over 14. Net interest margin expanded seven basis points to 3.99%, net interest income rose to $90.4 million from $88.4 million in Q1 and $86.6 million a year ago, and efficiency ratio improved to 55.38% for the first six months versus 57% in the first six months of 2025. Loans increased $99 million in Q2, customer deposits were stable, broker deposits were reduced by $100 million in the quarter and $180 million year to date, and DDA deposits remained 28% of total deposits. Non-performing assets declined by $9.7 million to $40.2 million, net charge-offs were $1 million, provision expense was $1.1 million, and the ACL was 1.16% of loans versus 1.17% at Q1-end. For capital, the company repurchased about 1.1 million shares in Q2 for $47.6 million at an average price of $44.24, and over the past three quarters repurchased almost 3.2 million shares, or 8% of shares outstanding, for $133 million; the Board also reauthorized another $100 million. Guidance calls for annualized mid-single-digit loan growth for the balance of 2026, margin stability around the current high 3.90s for the next several quarters, fees around $14 million per quarter in the second half, and non-interest expense growth capped at about 3% year over year, implying a quarterly run rate around $58 million. Management also said deposits should self-fund loan growth and that crossing the $10 billion asset threshold is expected in the second half of 2026.

Christopher McComish framed the quarter as evidence of broader momentum, emphasizing stronger customer relationships, the Forbes in-state bank recognition, and the bank’s 125-year legacy. He said the results showed meaningful EPS growth, solid returns, favorable asset quality, positive operating leverage, and disciplined capital management. On strategy, he stressed continued organic execution, further M&A evaluation, and flexibility to use capital selectively rather than aggressively chase buybacks at higher share prices.

Mark Kovacic highlighted the financial drivers behind the quarter: NII up $2 million on an extra day, better asset yields, lower funding costs, and a better funding mix. He pointed to a seven-basis-point NIM expansion to 3.99%, fees up $1.3 million, and expenses up $2 million largely from salaries and benefits, while reiterating that 2026 expenses should rise no more than about 3% year over year, or roughly a $58 million quarterly run rate. He also noted strong capital, a 28-basis-point decline in TCE driven by buybacks, and said the company is comfortable with additional repurchases but is re-evaluating the pace as the stock price moves higher.

Analysts focused on whether loan growth could remain mid-single-digit, whether deposits would continue to fund growth, and how aggressively the company would keep buying back stock. Management confirmed mid-single-digit loan growth for the rest of 2026 and said deposits should self-fund that growth, while also saying buybacks may be stepped back somewhat at current share prices. Other questions centered on the $10 billion asset threshold and its Durbin-related cost implications; management said crossing it is likely in the second half and that they believe operating leverage, expense discipline, and other levers can offset the roughly $6 million annualized impact over time.