S&T Bancorp Reports $35.1 Million Net Income in First Quarter of 2026

S&T Bancorp, Inc. reported a net income of $35.1 million, or $0.94 per diluted share, for the first quarter of 2026, reflecting a 5% increase in net income and an 8% rise in diluted earnings per share compared to the same period in 2025. The bank's net interest income rose by $5.1 million, or 6.1%, to $88.4 million, driven by a favorable funding mix and lower interest rates on liabilities. The net interest margin increased to 3.92% from 3.81% year-over-year, attributed to strong customer growth that reduced reliance on brokered deposits.

Total assets remained stable at approximately $9.9 billion, with a notable increase in cash and due from banks, which rose by $175.6 million to $339.1 million. However, total portfolio loans decreased by $112.6 million, or 1.4%, to $8.0 billion, primarily due to lower fundings and higher payoffs in the commercial real estate sector. The bank's total deposits increased by $226.4 million, or 2.8%, to $8.2 billion, with customer deposits growing by $306.5 million, reflecting broad-based growth across various product categories.

The provision for credit losses increased to $1.3 million from a negative $3.0 million in the prior year, primarily due to higher net loan charge-offs and an increase in specific reserves for loans under individual evaluation. Noninterest income also saw a rise, increasing by $3.2 million to $13.6 million, largely due to the absence of realized losses from securities repositioning that occurred in 2025. Conversely, noninterest expenses rose by $1.6 million to $56.7 million, driven mainly by higher salaries and employee benefits.

S&T Bancorp's shareholders' equity decreased by $33.2 million to $1.4 billion, influenced by stock repurchases totaling $50.2 million and an other comprehensive loss of $5.8 million. The bank repurchased 1,146,100 shares at an average price of $43.30 during the quarter, with $50.4 million remaining under its share repurchase program. Looking ahead, S&T Bancorp aims to focus on growing its deposit franchise, improving core profitability, and maintaining asset quality as part of its strategic priorities for 2026 and beyond.