S&T Bancorp, Inc. (NASDAQ: STBA) reported first‑quarter 2026 results on April 23, 2026. Net income rose to $35.1 million, up 3.1 million from the $34.0 million reported in the fourth quarter of 2025 and 1.7 million from the $33.4 million in the first quarter of 2025. Diluted earnings per share climbed to $0.94, a 5.6 % increase from the $0.89 in Q4 2025 and an 8.0 % rise from the $0.87 in Q1 2025. Total revenue for the quarter was $102.1 million, down 8.7 % year‑over‑year from $111.8 million in the same period a year earlier, missing the consensus estimate of $103.39 million. Net interest income was $88.4 million, a decline of $2.6 million from the $91.0 million in Q4 2025, and the non‑GAAP net interest margin fell 7 basis points to 3.92 %.
Deposits increased by $226.4 million, an 11.5 % annualized gain, driven by $306.5 million in customer deposit growth that pushed total deposits above $8 billion for the first time in the bank’s 125‑year history. Share repurchases totaled $49.6 million during the quarter, bringing cumulative buybacks to $85.8 million. The bank’s total assets were $9.9 billion at December 31 2025, placing it just shy of the $10 billion threshold that could trigger additional regulatory scrutiny.
Total portfolio loans fell by $112.6 million, reflecting lower fundings, reduced line usage, and commercial real‑estate payoffs. The allowance for credit losses remained steady at 1.17 % of total loans, and the provision for credit losses was $1.3 million compared with $5.7 million in the prior quarter. Net interest income compression was partly offset by a decline in deposit costs, as the bank reduced its reliance on brokered deposits.
Management guided that credit results for the full year 2026 will be similar to 2025 and that loan growth in the second quarter will be low single‑digit. The bank also indicated that the non‑GAAP net interest margin is expected to remain stable in the mid‑to‑high 3.9 % range for the year. No changes were made to the company’s dividend policy.
CEO Chris McComish said the quarter “delivered strong earnings performance, solid return metrics and robust deposit growth, underscoring the team’s commitment to our strategic priorities.” He added that the record customer deposit inflow “allows S&T to cut wholesale funding by nearly $200 million and lift deposit‑to‑deposit‑asset ratios to 28 % of total deposits.” McComish also noted that the $49.6 million in buybacks “played a key role in improving return on tangible common equity.”
The earnings beat was driven by disciplined cost management and a higher mix of fee‑generating activities, while the revenue miss reflected a broader decline in loan‑originated income amid competitive lending conditions. The modest margin compression signals that the bank’s interest‑rate environment is tightening, but the strong deposit base and reduced wholesale funding costs help cushion the impact. With guidance pointing to stable credit performance and a modest loan‑growth outlook, investors can view the results as a confirmation of the bank’s strategic focus on deposit expansion and cost discipline.
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