Earnings and buybacks lift S&T Bancorp (STBA) Q1 2026 results
Filing Impact
Filing Sentiment
Form Type
10-Q
S&T Bancorp, Inc. reported first-quarter 2026 net income of $35.1 million, up 5.0% from a year earlier, with diluted EPS rising to $0.94 from $0.87. Return on average assets was 1.44%, and return on average shareholders’ equity was 9.77%.
Net interest income rose to $88.4 million as the fully taxable-equivalent net interest margin improved to 3.92%, helped by lower funding costs and modest loan growth. Noninterest income benefited from the absence of prior-year securities losses, while expenses edged higher mainly from salaries and benefits.
The allowance for credit losses was $93.3 million with higher net charge-offs and provision expense. Loans totaled $7.96 billion and deposits $8.19 billion. The company was active in capital return, repurchasing about 1.15 million shares for $49.6 million in the quarter and another 354,200 shares after quarter-end under a $100 million authorization.
Positive
- None.
Negative
- None.
Key Figures
Net income: $35.1M
Diluted EPS: $0.94 per share
Net interest income: $88.4M
+5 more
8 metrics
Net income
$35.1M
Three months ended March 31, 2026
Diluted EPS
$0.94 per share
Three months ended March 31, 2026
Net interest income
$88.4M
Three months ended March 31, 2026
Net interest margin (FTE)
3.92%
Three months ended March 31, 2026
Total portfolio loans
$7.96B
Balance at March 31, 2026
Total deposits
$8.19B
Balance at March 31, 2026
Allowance for credit losses
$93.3M
Balance at March 31, 2026
Q1 2026 share repurchases
1,146,100 shares; $49.6M
Average price $43.30 per share, excluding taxes and commissions
Key Terms
net interest margin, allowance for credit losses, fully taxable equivalent (FTE) basis, nonaccrual loans, +1 more
5 terms
net interest margin financial
"The net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points to 3.92 percent"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
allowance for credit losses financial
"We maintain an ACL, at a level determined to be adequate to absorb estimated expected credit losses"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
fully taxable equivalent (FTE) basis financial
"The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities"
nonaccrual loans financial
"The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented"
Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.
cash flow hedge financial
"Interest rate swap contracts - cash flow hedges"
A cash flow hedge is an accounting label for a contract or arrangement used to offset expected future swings in a company’s cash payments or receipts — for example from variable-rate interest, foreign currency sales, or forecasted purchases. It matters to investors because it aims to smooth future cash and earnings volatility: gains or losses on the hedge are held out of current profit and reported separately until the underlying transaction affects results, much like buying insurance to steady future bills.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________
FORM 10-Q
______________________________________
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended March 31, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number 0-12508
______________________________________
(Exact name of registrant as specified in its charter)
______________________________________
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||||||||||
| (Address of principal executive offices) | (zip code) | |||||||||||||
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address, and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer | ☐ | |||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | |||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.
Common Stock, $2.50 Par Value - 35,976,886 shares as of May 5, 2026
Table of Contents
S&T BANCORP, INC. AND SUBSIDIARIES
| Page No. | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Item 1. | Condensed Consolidated Financial Statements | |||||||
Consolidated Balance Sheets | 2 | |||||||
Condensed Consolidated Statements of Comprehensive Income | 3 | |||||||
Consolidated Statements of Changes in Shareholders' Equity | 4 | |||||||
Condensed Consolidated Statements of Cash Flows | 5 | |||||||
Notes to Condensed Consolidated Financial Statements | 6 | |||||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 25 | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 38 | ||||||
Item 4. | Controls and Procedures | 40 | ||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. | Legal Proceedings | 41 | ||||||
Item 1A. | Risk Factors | 41 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 41 | ||||||
Item 3. | Defaults Upon Senior Securities | 41 | ||||||
Item 4. | Mine Safety Disclosures | 41 | ||||||
Item 5. | Other Information | 41 | ||||||
Item 6. | Exhibits | 42 | ||||||
Signatures | 43 | |||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||||||||
| (in thousands, except share and per share data) | (Unaudited) | (Audited) | |||||||||||||||
| ASSETS | |||||||||||||||||
Cash and due from banks, including interest-bearing deposits of $ | $ | $ | |||||||||||||||
| Securities available for sale, at fair value | |||||||||||||||||
| Loans held for sale | |||||||||||||||||
| Portfolio loans, net of unearned income | |||||||||||||||||
| Allowance for credit losses | ( | ( | |||||||||||||||
| Portfolio loans, net | |||||||||||||||||
| Bank owned life insurance | |||||||||||||||||
| Premises and equipment, net | |||||||||||||||||
| Federal Home Loan Bank and other restricted stock, at cost | |||||||||||||||||
| Goodwill | |||||||||||||||||
| Other intangible assets, net | |||||||||||||||||
| Other assets | |||||||||||||||||
| Total Assets | $ | $ | |||||||||||||||
| LIABILITIES | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Noninterest-bearing demand | $ | $ | |||||||||||||||
| Interest-bearing demand | |||||||||||||||||
| Money market | |||||||||||||||||
| Savings | |||||||||||||||||
| Certificates of deposit | |||||||||||||||||
| Total Deposits | |||||||||||||||||
| Short-term borrowings | |||||||||||||||||
| Long-term borrowings | |||||||||||||||||
| Junior subordinated debt securities | |||||||||||||||||
| Other liabilities | |||||||||||||||||
| Total Liabilities | |||||||||||||||||
| SHAREHOLDERS’ EQUITY | |||||||||||||||||
Common stock ($ Authorized— Issued— Outstanding— | |||||||||||||||||
| Additional paid-in capital | |||||||||||||||||
| Retained earnings | |||||||||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||||||||
Treasury stock — | ( | ( | |||||||||||||||
| Total Shareholders’ Equity | |||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | $ | |||||||||||||||
See Notes to Consolidated Financial Statements
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S&T BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except per share data) | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||||||||||||||||||||||||||
| Loans, including fees | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Investment Securities: | ||||||||||||||||||||||||||||||||||||||||||||
| Taxable | ||||||||||||||||||||||||||||||||||||||||||||
| Tax-exempt | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends | ||||||||||||||||||||||||||||||||||||||||||||
Total Interest and Dividend Income | ||||||||||||||||||||||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||||||||||||||||
| Borrowings, junior subordinated debt securities and other | ||||||||||||||||||||||||||||||||||||||||||||
Total Interest Expense | ||||||||||||||||||||||||||||||||||||||||||||
NET INTEREST INCOME | ||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | ( | |||||||||||||||||||||||||||||||||||||||||||
Net Interest Income After Provision for Credit Losses | ||||||||||||||||||||||||||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||||||||||||||||||
Net loss on sale of securities | ( | |||||||||||||||||||||||||||||||||||||||||||
| Debit and credit card | ||||||||||||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | ||||||||||||||||||||||||||||||||||||||||||||
| Investment services and trust | ||||||||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||||||||
Total Noninterest Income | ||||||||||||||||||||||||||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | ||||||||||||||||||||||||||||||||||||||||||||
| Data processing and information technology | ||||||||||||||||||||||||||||||||||||||||||||
| Occupancy | ||||||||||||||||||||||||||||||||||||||||||||
| Furniture, equipment and software | ||||||||||||||||||||||||||||||||||||||||||||
| Other taxes | ||||||||||||||||||||||||||||||||||||||||||||
| Marketing | ||||||||||||||||||||||||||||||||||||||||||||
| Professional services and legal | ||||||||||||||||||||||||||||||||||||||||||||
| FDIC insurance | ||||||||||||||||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||||||||||||||
Total Noninterest Expense | ||||||||||||||||||||||||||||||||||||||||||||
Income Before Taxes | ||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | ||||||||||||||||||||||||||||||||||||||||||||
Net Income | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Earnings per share—basic | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Earnings per share—diluted | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Dividends declared per share | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
See Notes to Consolidated Financial Statements
3
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S&T BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except share and per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
| Net income for the three months ended March 31, 2025 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued for restricted stock awards, net of forfeitures ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
| Recognition of restricted stock compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands, except share and per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
| Net income for the three months ended March 31, 2026 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss, net of tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock issued for restricted stock awards, net of forfeitures ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of S&T stock ( | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
| Recognition of restricted stock compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | |||||||||||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | $ | |||||||||||||||||||||
| INVESTING ACTIVITIES | |||||||||||||||||||||||
| Purchases of securities | ( | ( | |||||||||||||||||||||
| Proceeds from maturities, prepayments and calls of securities | |||||||||||||||||||||||
| Proceeds from sales of securities | |||||||||||||||||||||||
Redemptions of Federal Home Loan Bank stock | |||||||||||||||||||||||
Net decrease (increase) in loans | ( | ||||||||||||||||||||||
Purchases of premises and equipment, net of proceeds from sales | ( | ( | |||||||||||||||||||||
| Net payments from cash flow hedge | ( | ( | |||||||||||||||||||||
Net Cash Provided by (Used in) Investing Activities | ( | ||||||||||||||||||||||
| FINANCING ACTIVITIES | |||||||||||||||||||||||
Net increase (decrease) in demand, money market and savings deposits | |||||||||||||||||||||||
Net increase (decrease) in certificates of deposit | ( | ||||||||||||||||||||||
| Net increase (decrease) in short-term borrowings | ( | ( | |||||||||||||||||||||
| Repayments on long-term borrowings | ( | ( | |||||||||||||||||||||
| Repurchase of shares for taxes on restricted stock | ( | ( | |||||||||||||||||||||
| Cash dividends paid to common shareholders | ( | ( | |||||||||||||||||||||
| Repurchase of common stock | ( | ||||||||||||||||||||||
Net Cash Provided by Financing Activities | |||||||||||||||||||||||
Net increase (decrease) in cash and due from banks | ( | ||||||||||||||||||||||
| Cash and due from banks at beginning of period | |||||||||||||||||||||||
| Cash and Due From Banks at End of Period | $ | $ | |||||||||||||||||||||
| Supplemental Disclosures | |||||||||||||||||||||||
| Right of use assets obtained in exchange for lease obligations | $ | $ | |||||||||||||||||||||
| Cash paid for interest | $ | $ | |||||||||||||||||||||
Cash paid for state income taxes, net of refunds | $ | $ | |||||||||||||||||||||
See Notes to Consolidated Financial Statements | |||||||||||||||||||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
Principles of Consolidation
The interim Condensed Consolidated Financial Statements include the accounts of S&T Bancorp, Inc., or S&T, and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Investments of 20 percent to 50 percent of the outstanding common stock of investees are accounted for using the equity method of accounting.
Basis of Presentation
The accompanying unaudited interim Condensed Consolidated Financial Statements of S&T have been prepared in accordance with generally accepted accounting principles, or GAAP, in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025, or 2025 Form 10-K, filed with the Securities and Exchange Commission, or SEC. In the opinion of management, the accompanying interim financial information reflects all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position and the results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period.
Reclassification
Amounts in prior period financial statements and footnotes are reclassified whenever necessary to conform to the current period presentation. Reclassifications had no effect on our condensed consolidated financial statements.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Segments
We have one operating segment, Community Banking, based upon our current reporting structure at the consolidated level. The chief operating decision maker, or CODM, uses consolidated net income when allocating resources and making operating decisions. The accounting policies used to measure the profit and loss of the Community Banking segment are the same as those described in the summary of significant accounting policies in our 2025 Form 10-K. The CODM does not review segment revenue or expense information at a lower level than what is included in our Consolidated Statements of Net Income. Expenses included within other expenses in the Condensed Consolidated Statements of Comprehensive Income include loan related expenses, travel and entertainment, insurance expenses and contributions.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Recently Adopted Accounting Standards Updates, or ASU, or Updated
There were no recently adopted accounting standards updates in the first quarter of 2026.
Recently Issued Accounting Standards Not Yet Adopted
Income Statement (Subtopic 220-40)—Reporting Comprehensive Income—Expense Disaggregation Disclosures
In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40)—Reporting Comprehensive Income—Expense Disaggregation Disclosures to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. This ASU will not impact our consolidated financial statements and we are currently evaluating the impact of the new disclosure requirements.
Interim Reporting (Topic 270)—Narrow-Scope Improvements
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270)—Narrow-Scope Improvements to improve the navigability of the required interim disclosures and clarify when the guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. The amendments add to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this update are effective for annual reporting period beginning after December 15, 2027, and interim reporting periods beginning after December 15, 2028. Early adoption is permitted. This ASU is not expected to have a material impact on disclosures.
NOTE 2. EARNINGS PER SHARE
The treasury stock method was used to determine earnings per share for the three months ended March 31, 2026 and 2025.
The following table reconciles the numerators and denominators of basic and diluted EPS calculations for the periods presented:
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| (in thousands, except share and per share data) | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
Numerator for Earnings per Share—Basic and Diluted: | ||||||||||||||||||||||||||||||||||||||||||||
| Net income—Basic and Diluted | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Denominator for Earnings per Share: | ||||||||||||||||||||||||||||||||||||||||||||
| Weighted Average Shares Outstanding—Basic | ||||||||||||||||||||||||||||||||||||||||||||
| Add: Potentially dilutive shares | ||||||||||||||||||||||||||||||||||||||||||||
| Denominator—Diluted | ||||||||||||||||||||||||||||||||||||||||||||
| Earnings per share—basic | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Earnings per share—diluted | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Restricted stock considered anti-dilutive excluded from potentially dilutive shares | ||||||||||||||||||||||||||||||||||||||||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3. FAIR VALUE MEASUREMENTS
We use fair value measurements when recording and disclosing certain financial assets and liabilities. Debt securities, equity securities, securities held in a deferred compensation plan and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other financial instruments at fair value on a nonrecurring basis, such as loans held for sale, loans individually evaluated, other real estate owned, or OREO, and other repossessed assets, mortgage servicing rights, or MSRs, and certain other assets.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability which are developed based on market data that we have obtained from independent sources. Unobservable inputs reflect our estimates of assumptions that market participants would use in pricing an asset or liability which are developed based on the best information available in the circumstances.
The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows.
Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets.
Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data.
Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
There have been no changes in our valuation methodologies during the three months ended March 31, 2026. Refer to Note 1. Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in our 2025 Form 10-K for more information on the valuation methodologies that we use for financial instruments recorded at fair value on a recurring or nonrecurring basis.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at the dates presented:
| March 31, 2026 | |||||||||||||||||||||||
| (dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
Collateralized mortgage obligations of U.S. government corporations and agencies(1) | |||||||||||||||||||||||
Residential mortgage-backed securities of U.S. government corporations and agencies(1) | |||||||||||||||||||||||
| Commercial mortgage-backed securities of U.S. government corporations | |||||||||||||||||||||||
| Obligations of states and political subdivisions | |||||||||||||||||||||||
| Total Available-for-Sale Debt Securities | |||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||
| Total Securities Available for Sale | |||||||||||||||||||||||
| Securities held in a deferred compensation plan | |||||||||||||||||||||||
| Derivative financial assets: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | |||||||||||||||||||||||
| Interest rate lock commitments - mortgage loans | |||||||||||||||||||||||
| Total Assets | $ | $ | $ | $ | |||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Derivative financial liabilities: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | $ | $ | $ | $ | |||||||||||||||||||
| Interest rate swap contracts - cash flow hedge | |||||||||||||||||||||||
| Total Liabilities | $ | $ | $ | $ | |||||||||||||||||||
(1)Collateralized mortgage obligations and residential mortgage backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. | |||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| U.S. Treasury securities | $ | $ | $ | $ | |||||||||||||||||||
Collateralized mortgage obligations of U.S. government corporations and agencies(1) | |||||||||||||||||||||||
Residential mortgage-backed securities of U.S. government corporations and agencies(1) | |||||||||||||||||||||||
| Commercial mortgage-backed securities of U.S. government corporations | |||||||||||||||||||||||
| Obligations of states and political subdivisions | |||||||||||||||||||||||
| Total Available-for-Sale Debt Securities | |||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||
| Total Securities Available for Sale | |||||||||||||||||||||||
| Securities held in a deferred compensation plan | |||||||||||||||||||||||
| Derivative financial assets: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | |||||||||||||||||||||||
| Interest rate lock commitments - mortgage loans | |||||||||||||||||||||||
| Total Assets | $ | $ | $ | $ | |||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Derivative financial liabilities: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | $ | $ | $ | $ | |||||||||||||||||||
| Interest rate swap contracts - cash flow hedge | |||||||||||||||||||||||
| Total Liabilities | $ | $ | $ | $ | |||||||||||||||||||
(1)Collateralized mortgage obligations and residential mortgage backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. | |||||||||||||||||||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Assets Recorded at Fair Value on a Nonrecurring Basis
We may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities are recorded at the lower of cost or fair value in our consolidated financial statements and are remeasured only when events or circumstances indicate impairment. At March 31, 2026, individually evaluated loans of $1.7 million were measured at fair value on a nonrecurring basis and classified as Level 3 and individually evaluated loans of $1.2 million were measured at fair value and classified as Level 2. At December 31, 2025 individually evaluated loans of $10.6 million were classified as Level 3 and $5.3 million were classified as Level 2. There were no liabilities measured at fair value on a nonrecurring basis as of both March 31, 2026 and December 31, 2025.
Significant unobservable inputs used in the fair value measurements of Level 3 assets on a nonrecurring basis at March 31, 2026 and December 31, 2025 were as follows:
| (dollars in thousands) | March 31, 2026 | Valuation Technique | Significant Unobservable Inputs(1) | Collateral Adjustment(2) | ||||||||||||||||||||||||||||||||||
| Loans individually evaluated | $ | Collateral based valuation | Collateral adjustments | |||||||||||||||||||||||||||||||||||
(1)Represents discount adjustments to collateral values related to anticipated collection rates of accounts receivable based on management judgment. | ||||||||||||||||||||||||||||||||||||||
(2)Represents the collateral adjustment of one loan. | ||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2025 | Valuation Technique | Significant Unobservable Inputs(1) | Collateral Adjustment(2) | ||||||||||||||||||||||||||||||||||
| Loans individually evaluated | $ | Collateral based valuation | Collateral adjustments | |||||||||||||||||||||||||||||||||||
(1)Represents discount adjustments to collateral values related to anticipated collection rates of accounts receivable based on management judgment. | ||||||||||||||||||||||||||||||||||||||
(2)Represents the collateral adjustment of one loan. | ||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments
The following tables present the carrying values and fair values of our financial instruments at the dates presented:
Carrying Value(1) | Fair Value Measurements at March 31, 2026 | ||||||||||||||||||||||||||||
| (dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and due from banks, including interest-bearing deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Securities available for sale | |||||||||||||||||||||||||||||
| Loans held for sale | |||||||||||||||||||||||||||||
| Portfolio loans, net | |||||||||||||||||||||||||||||
| Securities held in a deferred compensation plan | |||||||||||||||||||||||||||||
| Mortgage servicing rights | |||||||||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | |||||||||||||||||||||||||||||
| Interest rate lock commitments - mortgage loans | |||||||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Collateral payable | |||||||||||||||||||||||||||||
| Short-term borrowings | |||||||||||||||||||||||||||||
| Long-term borrowings | |||||||||||||||||||||||||||||
| Junior subordinated debt securities | |||||||||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | |||||||||||||||||||||||||||||
| Interest rate swap contracts - cash flow hedge | |||||||||||||||||||||||||||||
(1) As reported in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Carrying Value(1) | Fair Value Measurements at December 31, 2025 | ||||||||||||||||||||||||||||
| (dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and due from banks, including interest-bearing deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Securities available for sale | |||||||||||||||||||||||||||||
| Loans held for sale | |||||||||||||||||||||||||||||
| Portfolio loans, net | |||||||||||||||||||||||||||||
| Collateral receivable | |||||||||||||||||||||||||||||
| Securities held in a deferred compensation plan | |||||||||||||||||||||||||||||
| Mortgage servicing rights | |||||||||||||||||||||||||||||
| Interest rate swaps - commercial loans | |||||||||||||||||||||||||||||
| Interest rate lock commitments | |||||||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Collateral payable | |||||||||||||||||||||||||||||
| Short-term borrowings | |||||||||||||||||||||||||||||
| Long-term borrowings | |||||||||||||||||||||||||||||
| Junior subordinated debt securities | |||||||||||||||||||||||||||||
| Interest rate swaps - commercial loans | |||||||||||||||||||||||||||||
| Interest rate swaps - cash flow hedge | |||||||||||||||||||||||||||||
(1) As reported in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||
NOTE 4. SECURITIES
The following table presents the fair values of our securities portfolio at the dates presented:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||
| Debt securities | $ | $ | |||||||||||||||||||||||||||
| Equity securities | |||||||||||||||||||||||||||||
| Total Securities Available for Sale | $ | $ | |||||||||||||||||||||||||||
The following table presents the amortized cost and fair value of available-for-sale debt securities at the dates presented:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury securities | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations of U.S. government corporations and agencies(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities of U.S. government corporations and agencies(2) | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities of U.S. government corporations | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Obligations of states and political subdivisions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Available-for-Sale Debt Securities(1) | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Excludes interest receivable of $3.2 million at March 31, 2026 and $3.3 million at December 31, 2025. Interest receivable is included in other assets in the Consolidated Balance Sheets.
(2)Collateralized mortgage obligations and residential mortgage backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables present the fair value and the age of gross unrealized losses on available-for-sale debt securities by investment category at the dates presented:
| March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Collateralized mortgage obligations of U.S. government corporations and agencies | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed securities of U.S. government corporations and agencies | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities of U.S. government corporations | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||
| Collateralized mortgage obligations of U.S. government corporations and agencies | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed securities of U.S. government corporations and agencies | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities of U.S. government corporations | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||
We evaluate securities with unrealized losses quarterly to determine if the decline in fair value has resulted from credit impairment or other factors. We do not believe any individual unrealized loss as of March 31, 2026 represents a credit impairment. The unrealized losses on debt securities were attributable to changes in interest rates and not related to the credit quality of the issuers. All debt securities were determined to be investment grade and paying principal and interest according to the contractual terms of the security. As of March 31, 2026, we do not intend to sell, and it is more likely than not that we will not be required to sell, the securities in an unrealized loss position before recovery of their amortized cost.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents net unrealized gains and losses, net of tax, on available-for-sale debt securities included in accumulated other comprehensive loss, for the periods presented:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Gross Unrealized Gains | Gross Unrealized Losses | Net Unrealized Losses | Gross Unrealized Gains | Gross Unrealized Losses | Net Unrealized Losses | |||||||||||||||||||||||||||||
| Total unrealized gains (losses) on available-for-sale debt securities | $ | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
| Income tax (expense) benefit | ( | ( | |||||||||||||||||||||||||||||||||
| Net Unrealized Losses, Net of Tax Included in Accumulated Other Comprehensive Loss | $ | $ | ( | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||||||||
The amortized cost and fair value of available-for-sale debt securities at March 31, 2026 by contractual maturity are included in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| March 31, 2026 | |||||||||||
| (dollars in thousands) | Amortized Cost | Fair Value | |||||||||
| Obligations of the U.S. Treasury, U.S. government corporations and agencies and obligations of states and political subdivisions | |||||||||||
| Due in one year or less | $ | $ | |||||||||
| Due after one year through five years | |||||||||||
| Due after five years through ten years | |||||||||||
| Due after ten years | |||||||||||
| Available-for-Sale Debt Securities With Fixed Maturities | |||||||||||
| Debt Securities without a single maturity date | |||||||||||
| Collateralized mortgage obligations of U.S. government corporations and agencies | |||||||||||
| Residential mortgage-backed securities of U.S. government corporations and agencies | |||||||||||
| Commercial mortgage-backed securities of U.S. government corporations | |||||||||||
| Total Available-for-Sale Debt Securities | $ | $ | |||||||||
Debt securities are pledged in order to meet various regulatory and legal requirements. Restricted pledged securities had a carrying value of $37.2 million at March 31, 2026 and $38.3 million at December 31, 2025. Unrestricted pledged securities had a carrying value of $208.0 million at March 31, 2026 and $202.0 million at December 31, 2025. Any sales or changes to the pledged status of restricted pledged securities requires approval of the beneficiary. Approval is not required in order to sell or make changes to the pledged status for unrestricted pledged securities.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES
Loans and Loans Held for Sale
Loans are presented net of unearned income. Unearned income consisted of net deferred loan fees and costs of $4.1 million at March 31, 2026 and $4.8 million at December 31, 2025 and a discount related to purchase accounting fair value adjustments of $1.9 million at March 31, 2026 and $2.0 million at December 31, 2025.
The following table summarizes the composition of our loan portfolio at the dates presented:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | |||||||||
| Commercial real estate | $ | $ | |||||||||
| Commercial and industrial | |||||||||||
| Commercial construction | |||||||||||
| Business banking | |||||||||||
| Consumer real estate | |||||||||||
| Other consumer | |||||||||||
| Total Portfolio Loans | $ | $ | |||||||||
| Loans held for sale | |||||||||||
Total Loans(1) | $ | $ | |||||||||
Modifications to Borrowers Experiencing Financial Difficulty
The following tables present the amortized cost of loans to borrowers experiencing financial difficulty by portfolio segment and type of modification during the periods presented:
| Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||
| (dollars in thousands) | Term Extension | Term Extension and Payment Delays | Total | % of Portfolio Segment | ||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | % | ||||||||||||||||||||||
| Business banking | — | % | ||||||||||||||||||||||||
| Consumer real estate | — | % | ||||||||||||||||||||||||
Total | $ | $ | $ | % | ||||||||||||||||||||||
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||
| (dollars in thousands) | Term Extension | Term Extension and Payment Delays | Total | % of Portfolio Segment | ||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | % | ||||||||||||||||||||||
| Commercial construction | % | |||||||||||||||||||||||||
| Consumer real estate | % | |||||||||||||||||||||||||
Total | $ | $ | $ | % | ||||||||||||||||||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables describe the effect of loan modifications made to borrowers experiencing financial difficulty during the periods presented:
| Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted-Average Term Extension (in months) | Weighted-Average Term Extension and Payment Delays (in months) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business banking | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer real estate | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted-Average Term Extension (in months) | Weighted-Average Term Extension and Payment Delays (in months) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial construction | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts.
| March 31, 2026 | |||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | ||||||||||||||||||||||||||||||
| Commercial and industrial | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| Business banking | |||||||||||||||||||||||||||||||||||
| Consumer real estate | |||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| March 31, 2025 | |||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total | ||||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||
| Commercial construction | |||||||||||||||||||||||||||||||||||
| Consumer real estate | |||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
A payment default is defined as a loan having a payment past due 90 days or more. There was one payment default on previously modified loans to borrowers experiencing financial difficulty in the amount of $3.4 million during the three months ended March 31, 2026 compared to one payment default in the amount of $3.8 million during the same period in 2025. Additionally, we had thirteen commitments to lend an additional $1.3 million to borrowers experiencing financial difficulty that had a modification during the twelve months ended March 31, 2026 and ten commitments to lend an additional $0.5 million to borrowers experiencing financial difficulty that had a modification during the same period in 2025.
The effect of modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, or ACL, because of the measurement methodologies used to estimate the ACL, therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Allowance for Credit Losses
We maintain an ACL, at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer.
The following are key risks within each portfolio segment:
CRE—Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied.
C&I—Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.
Commercial Construction—Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While these loans are generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.
Business Banking—Commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. The business banking portfolio is monitored by utilizing a standard and closely managed process focusing on behavioral and performance criteria. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and business.
Consumer Real Estate—Loans secured by first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt.
Other Consumer—Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.
Management monitors various credit quality indicators for the commercial, business banking and consumer loan portfolios, including changes in risk ratings, nonperforming status and delinquency on a monthly basis.
We monitor the commercial and business banking loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention or substandard.
Our risk ratings are consistent with regulatory guidance and are as follows:
Pass—The loan is currently performing and is of high quality.
Special Mention—A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Substandard—A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.
Doubtful—Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables present loan balances by year of origination and internally assigned risk rating for our portfolio segments at the dates presented:
| March 31, 2026 | |||||||||||||||||||||||||||||
| Risk Rating by Year of Origination | |||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 and Prior | Revolving | Revolving-Term | Total | ||||||||||||||||||||
| Commercial Real Estate | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Commercial Real Estate | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Commercial and Industrial | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Commercial and Industrial | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Commercial Construction | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Commercial Construction | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Business Banking | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Business Banking | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Consumer Real Estate | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Consumer Real Estate | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Other Consumer | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Other Consumer | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Loan Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Year-to-date Gross Charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
| December 31, 2025 | |||||||||||||||||||||||||||||
| Risk Rating by Year of Origination | |||||||||||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 and Prior | Revolving | Revolving-Term | Total | ||||||||||||||||||||
| Commercial Real Estate | |||||||||||||||||||||||||||||
| Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Commercial Real Estate | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Commercial and Industrial | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Commercial and Industrial | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Commercial Construction | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Commercial Construction | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Business Banking | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Business Banking | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Consumer Real Estate | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Consumer Real Estate | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Other Consumer | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Other Consumer | |||||||||||||||||||||||||||||
| Year-to-date Gross Charge-offs | |||||||||||||||||||||||||||||
| Pass | |||||||||||||||||||||||||||||
| Special mention | |||||||||||||||||||||||||||||
| Substandard | |||||||||||||||||||||||||||||
| Doubtful | |||||||||||||||||||||||||||||
| Total Loan Balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
| Year-to-date Gross Charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables present the aging analysis of past due loans segregated by class of loans at the dates presented:
| March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | Nonaccrual | Total Past Due Loans | Total Loans | |||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial construction | |||||||||||||||||||||||||||||||||||||||||||||||
| Business banking | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer real estate | |||||||||||||||||||||||||||||||||||||||||||||||
| Other consumer | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | Nonaccrual | Total Past Due Loans | Total Loans | |||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial construction | |||||||||||||||||||||||||||||||||||||||||||||||
| Business banking | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer real estate | |||||||||||||||||||||||||||||||||||||||||||||||
| Other consumer | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented:
| March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Beginning of Period Nonaccrual | End of Period Nonaccrual | Nonaccrual With No Related Allowance | Interest Income Recognized on Nonaccrual(1) | |||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||
| Commercial construction | |||||||||||||||||||||||||||||||||||||||||
| Business banking | |||||||||||||||||||||||||||||||||||||||||
| Consumer real estate | |||||||||||||||||||||||||||||||||||||||||
| Other consumer | |||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
(1) Represents only cash payments received and applied to interest on nonaccrual loans.
| December 31, 2025 | |||||||||||||||||||||||||||||
| (dollars in thousands) | Beginning of Period Nonaccrual | End of Period Nonaccrual | Nonaccrual With No Related Allowance | Interest Income Recognized on Nonaccrual(1) | |||||||||||||||||||||||||
| Commercial real estate | $ | $ | $ | $ | |||||||||||||||||||||||||
| Commercial and industrial | |||||||||||||||||||||||||||||
| Commercial construction | |||||||||||||||||||||||||||||
| Business banking | |||||||||||||||||||||||||||||
| Consumer real estate | |||||||||||||||||||||||||||||
| Other consumer | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||||||||
(1) Represents only cash payments received and applied to interest on nonaccrual loans.
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S&T BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables present loans that are individually evaluated and collateral-dependent at the dates presented:
| March 31, 2026 | ||||||||||||||||||||
| Type of Collateral | ||||||||||||||||||||
| (dollars in thousands) | Real Estate | Business Assets | ||||||||||||||||||
| Commercial real estate | $ | $ | ||||||||||||||||||
| Commercial and industrial | ||||||||||||||||||||
| Business banking | ||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
| Type of Collateral | ||||||||||||||||||||
| (dollars in thousands) | Real Estate | Business Assets | ||||||||||||||||||
| Commercial real estate | $ | $ | ||||||||||||||||||
| Commercial and industrial | ||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||
The following tables present activity in the ACL for the periods presented:
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Commercial Real Estate | Commercial and Industrial | Commercial Construction | Business Banking | Consumer Real Estate | Other Consumer | Total Loans | ||||||||||||||||||||||||||||||||||
| Allowance for credit losses on loans: | |||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Provision for credit losses on loans(1) | ( | ||||||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||
| Net (Charge-offs) Recoveries | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Balance at End of Period | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
(1) Excludes the provision for credits losses for unfunded commitments. | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Commercial Real Estate | Commercial and Industrial | Commercial Construction | Business Banking | Consumer Real Estate | Other Consumer | Total Loans | ||||||||||||||||||||||||||||||||||
| Allowance for credit losses on loans: | |||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Provision for credit losses on loans(1) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Charge-offs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||
| Recoveries | |||||||||||||||||||||||||||||||||||||||||
| Net Recoveries (Charge-offs) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||
| Balance at End of Period | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
(1) Excludes the provision for credits losses for unfunded commitments. | |||||||||||||||||||||||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivatives Designated as Hedging Instruments
The following table indicates the amounts representing the value of derivative assets and derivative liabilities at the dates presented:
| Derivative Assets (Included in Other Assets) | Derivative Liabilities (Included in Other Liabilities) | ||||||||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||
| (dollars in thousands) | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||
| Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Interest rate swap contracts - cash flow hedges | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Total Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
| Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | |||||||||||||||||||||||||||||||||||
| Interest rate lock commitments - mortgage loans | |||||||||||||||||||||||||||||||||||
| Total Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
| Total Derivatives | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
The following table indicates the gross amounts of interest rate swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at the dates presented:
| Derivative Assets (Included in Other Assets) | Derivative Liabilities (Included in Other Liabilities) | ||||||||||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | March 31, 2026 | December 31, 2025 | |||||||||||||||||||
| Gross amounts recognized | $ | $ | $ | $ | |||||||||||||||||||
| Gross amounts offset | |||||||||||||||||||||||
| Net amounts presented in the Consolidated Balance Sheets | |||||||||||||||||||||||
Netting adjustments(1) | ( | ( | ( | ( | |||||||||||||||||||
Cash collateral(2) | ( | ( | |||||||||||||||||||||
| Net Amount | $ | $ | $ | $ | |||||||||||||||||||
(1) Netting adjustments represent the amounts recorded to convert derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. | |||||||||||||||||||||||
(2) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The application of the cash collateral cannot reduce the net derivative position below zero. Therefore, excess cash collateral, if any, is not reflected above. | |||||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the effect, net of tax, of the cash flow hedges on OCI and on the Consolidated Statements of Comprehensive Income for the periods presented: | |||||||||||||||||||||||||||||||||||
| Amount of Gain Recognized in Other Comprehensive Income | Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Interest Income | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Three months ended March 31, 2026 | Three months ended March 31, 2025 | Three months ended March 31, 2026 | Three months ended March 31, 2025 | |||||||||||||||||||||||||||||||
| Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||||||||||||
Interest rate swap contracts - cash flow hedges | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||
Amounts reported in OCI related to derivatives that are designated as hedging instruments are reclassified to interest income as interest payments are received on variable rate assets. We estimate that an additional $1.8 million will be reclassified as a decrease to interest income in the next 12 months. Our current interest rate swap agreements have three to five year terms with maturity dates extending into 2027.
The following table indicates the gain (loss) recognized in income on derivatives not designated as hedging instruments for the periods presented:
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
| Derivatives not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||||||||||||||
| Interest rate swap contracts—commercial loans | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Interest rate lock commitments—mortgage loans | ( | |||||||||||||||||||||||||||||||||||||||||||
| Total Derivatives Gain (Loss) | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||
NOTE 7. TAX CREDIT EQUITY INVESTMENTS
We invest in LIHTC and historic tax credit, or HTC, partnerships as part of our responsibilities under the Community Reinvestment Act and due to their favorable federal income tax benefits. As a limited partner in these operating partnerships, we receive tax credits and tax deductions for losses incurred by the underlying properties. No impairment losses were recognized for the three months ended March 31, 2026 and 2025.
The following table presents the balances included in the Consolidated Balance Sheets at the dates presented:
(dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||
Unfunded commitments(2) | ||||||||||||||||||||||||||
(1) Included in other assets in the Consolidated Balance Sheets | ||||||||||||||||||||||||||
(2) Included in other liabilities in the Consolidated Balance Sheets | ||||||||||||||||||||||||||
The following table summarizes the amortization expense and tax credits included in income tax expense in the Condensed Consolidated Statements of Comprehensive Income for the periods presented:
| Three Months Ended March 31, | ||||||||||||||||||||||||||
(dollars in thousands) | 2026 | 2025 | ||||||||||||||||||||||||
| Tax credits and other tax benefits recognized | $ | $ | ||||||||||||||||||||||||
| Amortization | ||||||||||||||||||||||||||
| Net benefit included in income tax expense | $ | $ | ||||||||||||||||||||||||
NOTE 8. COMMITMENTS AND CONTINGENCIES
Commitments
In the normal course of business, we offer off-balance sheet credit arrangements to enable our customers to meet their financing objectives. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. Our exposure to credit loss, in the event the customer does not satisfy the terms of the agreement, equals the contractual amount of the obligation less the value of any collateral. We apply the same credit policies in making commitments and standby letters of credit that are used for the underwriting of loans to customers. Commitments generally have fixed expiration dates, annual renewals or other termination clauses and may require
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
The following table sets forth our commitments and letters of credit at the dates presented:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | |||||||||||||||
| Commitments to extend credit | $ | $ | |||||||||||||||
| Standby letters of credit | |||||||||||||||||
| Total | $ | $ | |||||||||||||||
Litigation
In the normal course of business, we are subject to various legal and administrative proceedings and claims. While any type of litigation contains a level of uncertainty, we believe that the outcome of such proceedings or claims pending will not have a material adverse effect on our consolidated financial position or results of operations.
NOTE 9. OTHER COMPREHENSIVE INCOME (LOSS)
The following table presents the change in components of other comprehensive income (loss) for the periods presented, net of tax effects:
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Pre-Tax Amount | Tax Expense | Net of Tax Amount | Pre-Tax Amount | Tax Expense | Net of Tax Amount | |||||||||||||||||||||||||||||||||||||||||||||||
| Change in net unrealized (losses) gains on available-for-sale debt securities | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net available-for-sale securities losses reclassified into earnings | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in interest rate swap | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment to funded status of employee benefit plans | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Comprehensive (Loss) Income | $ | ( | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
NOTE 10. SHARE REPURCHASE PLAN
On January 21, 2026, the Board of Directors of S&T Bancorp, Inc. authorized a new $100.0 million share repurchase program. The repurchase authorization permits S&T to repurchase shares of S&T's common stock from time to time through a combination of open market and privately negotiated repurchases up to the authorized $100.0 million aggregate value of S&T's common stock. At March 31, 2026, there was $50.4 million in capacity remaining under the plan.
The following table presents common stock repurchase activity for the periods presented:
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
| (in thousands, except share and per share data) | 2026 | 2025 | |||||||||||||||||||||||||||||||||
| Value of shares authorized to repurchase | $ | $ | |||||||||||||||||||||||||||||||||
| Remaining plan capacity at the beginning of the period | $ | $ | |||||||||||||||||||||||||||||||||
| Total shares repurchased | |||||||||||||||||||||||||||||||||||
| Average share price for the period | $ | $ | |||||||||||||||||||||||||||||||||
Total share cost of repurchases(1) | $ | $ | |||||||||||||||||||||||||||||||||
| Remaining plan capacity at the end of the period | $ | $ | |||||||||||||||||||||||||||||||||
(1)Excludes excise tax and commissions. | |||||||||||||||||||||||||||||||||||
NOTE 11. SUBSEQUENT EVENTS
Subsequent to March 31, 2026, 354,200 shares were repurchased at an average price of $44.29 per share for $15.7 million excluding excise tax and commissions. At May 5, 2026, there was $34.7 million in capacity remaining under the repurchase plan authorized on January 21, 2026.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, represents an overview of our consolidated results of operations and financial condition and highlights material changes in our financial condition and results of operations for the three months ended March 31, 2026 and 2025. Our MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and Notes. The results of operations reported in the accompanying Condensed Consolidated Financial Statements are not necessarily indicative of results to be expected in future periods.
Important Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q 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 elsewhere in this report, and under Part I, Item 1A - “Risk Factors” of our 2025 Form 10-K, 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.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Critical Accounting Policies and Estimates
We view critical accounting policies to be those which are highly dependent on subjective or complex estimates, assumptions and judgments and where changes in those estimates and assumptions could have a significant impact on the Condensed Consolidated Financial Statements. Further, we view critical accounting estimates as those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Our critical accounting policies and estimates as of March 31, 2026 remained unchanged from the disclosures presented in our 2025 Form 10-K under Part II, Item 7 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Explanation of Use of Non-GAAP Financial Measures
In addition to traditional financial measures presented in accordance with GAAP, our management uses, and this report contains or references, certain non-GAAP financial measures, such as interest income on interest-earning assets, net interest income and net interest margin presented on a fully taxable equivalent, or FTE, basis (non-GAAP), the efficiency ratio (non-GAAP) and return on tangible shareholders' equity (non-GAAP).
We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying business, operational performance 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.
The following table reconciles interest and dividend income and net interest income per the Condensed Consolidated Statements of Comprehensive Income to interest income, net interest income and net interest margin on an FTE basis (non-GAAP) for the periods presented. The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison combining both taxable and non-taxable sources of interest income.
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
Total Interest and Dividend Income | $ | 126,333 | $ | 124,848 | ||||||||||||||||||||||||||||||||||||||||
| Plus: taxable equivalent adjustment | 590 | 617 | ||||||||||||||||||||||||||||||||||||||||||
Interest and Dividend Income on an FTE Basis (Non-GAAP) | $ | 126,923 | $ | 125,465 | ||||||||||||||||||||||||||||||||||||||||
Total Interest and Dividend Income | $ | 126,333 | $ | 124,848 | ||||||||||||||||||||||||||||||||||||||||
| Less: Interest expense | (37,897) | (41,525) | ||||||||||||||||||||||||||||||||||||||||||
Net Interest Income | 88,436 | 83,323 | ||||||||||||||||||||||||||||||||||||||||||
| Plus: taxable equivalent adjustment | 590 | 617 | ||||||||||||||||||||||||||||||||||||||||||
| Net Interest Income on an FTE Basis (Non-GAAP) | $ | 89,026 | $ | 83,940 | ||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 3.89 | % | 3.78 | % | ||||||||||||||||||||||||||||||||||||||||
| Plus: taxable equivalent adjustment | 0.03 | % | 0.03 | % | ||||||||||||||||||||||||||||||||||||||||
| Net Interest Margin on an FTE Basis (Non-GAAP) | 3.92 | % | 3.81 | % | ||||||||||||||||||||||||||||||||||||||||
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Return on average tangible shareholders' equity (non-GAAP) is a key profitability metric used by management to measure financial performance. The following table provides a reconciliation of return on average tangible shareholders' equity (non-GAAP) by reconciling net income (GAAP) per the Condensed Consolidated Statements of Comprehensive Income to net income before amortization of intangibles and average shareholder's equity to average tangible shareholders' equity for the periods presented:
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
| Net income (annualized) | $ | 142,236 | $ | 135,460 | ||||||||||||||||||||||||||||||||||||||||
| Plus: amortization of intangibles (annualized) net of tax | 583 | 772 | ||||||||||||||||||||||||||||||||||||||||||
| Net income before amortization of intangibles (non-GAAP) (annualized) | $ | 142,819 | $ | 136,232 | ||||||||||||||||||||||||||||||||||||||||
| Average shareholders' equity | $ | 1,455,682 | $ | 1,400,999 | ||||||||||||||||||||||||||||||||||||||||
| Less: average goodwill and other intangible assets, net of deferred tax liability | (375,136) | (375,741) | ||||||||||||||||||||||||||||||||||||||||||
Average tangible shareholders' equity (non-GAAP) | $ | 1,080,546 | $ | 1,025,258 | ||||||||||||||||||||||||||||||||||||||||
| Return on Average Tangible Shareholders' Equity (non-GAAP) | 13.22 | % | 13.29 | % | ||||||||||||||||||||||||||||||||||||||||
Executive Overview
We are a bank holding company that is headquartered in Indiana, Pennsylvania with assets of $9.9 billion at March 31, 2026. We operate in Pennsylvania and Ohio providing a full range of financial services with retail, business banking and commercial banking products and trust and brokerage services. Our common stock trades on the NASDAQ Global Select Market under the symbol “STBA.”
We earn revenue primarily from interest on loans and securities and fees charged for financial services provided to our customers. We incur expenses for the cost of deposits and other funding sources, provision for credit losses and other operating costs such as salaries and employee benefits, data processing, occupancy and tax expense.
Our purpose is building our future together through people-forward banking. We believe that all banking should be personal. We cultivate relationships rooted in trust, strengthened by going above and beyond and renewed with every interaction. Our strategic priorities for 2026 and beyond will be focused on growing our deposit franchise, improving core profitability, maintaining asset quality and ensuring a high level of talent and engagement.
Earnings Summary
The following table presents a summary of key profitability metrics for the periods presented:
| Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||
| Net income | $ | 35,072 | $ | 33,401 | ||||||||||||||||||||||||||||||||||||||||
| Earnings per share - diluted | $ | 0.94 | $ | 0.87 | ||||||||||||||||||||||||||||||||||||||||
| Return on average assets | 1.44 | % | 1.41 | % | ||||||||||||||||||||||||||||||||||||||||
| Return on average shareholders' equity | 9.77 | % | 9.67 | % | ||||||||||||||||||||||||||||||||||||||||
Return on average tangible shareholders' equity (non-GAAP)(1) | 13.22 | % | 13.29 | % | ||||||||||||||||||||||||||||||||||||||||
(1) Reconciled to GAAP in the "Explanation of Use of Non-GAAP Financial Measures" section of this MD&A. | ||||||||||||||||||||||||||||||||||||||||||||
We recognized net income of $35.1 million, or $0.94 per diluted share, for the three months ended March 31, 2026 compared to net income of $33.4 million, or $0.87 per diluted share, for the same period in 2025. This represents a 5.0 percent increase in net income and an 8.0 percent increase in diluted earnings per share for the three months ended March 31, 2026 compared to the same period in 2025. During the first quarter of 2026, 1,146,100 shares were repurchased at an average price of $43.30 per share for $49.6 million excluding excise tax and commissions. Total share repurchases for both the fourth quarter of 2025 and the first quarter of 2026 were 2,094,370 shares at an average price of $40.99 per share totaling $85.8 million excluding excise tax and commissions. The remaining capacity under the existing share repurchase program was $50.4 million at March 31, 2026.
Net interest income increased $5.1 million, or 6.1 percent to $88.4 million for the three months ended March 31, 2026 compared to $83.3 million for the same period in 2025. The net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points to 3.92 percent for the three months ended March 31, 2026 compared to 3.81 percent for the same period in 2025. The increases in net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest-bearing liabilities and an improvement in our funding mix due to strong customer growth which allowed for reduced levels of brokered deposits and borrowings.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The provision for credit losses increased $4.3 million to $1.3 million for the three months ended March 31, 2026 compared to negative $3.0 million for the same period in 2025. The increase was primarily due to higher net loan charge-offs and an increase in specific reserve for loans individually evaluated compared to the same period in 2025.
Noninterest income increased $3.2 million to $13.6 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was mainly related to $2.3 million in realized losses from the repositioning of securities into longer duration, higher-yielding securities which occurred in 2025 and is not present in 2026. Noninterest expense increased $1.6 million to $56.7 million for the three months ended March 31, 2026 compared to $55.1 million in the same period in 2025. The increase in noninterest expense primarily related to higher salaries and employee benefits of $1.5 million related to increased salary, medical and incentive costs.
The provision for income taxes increased $0.7 million to $9.0 million for the three months ended March 31, 2026 compared to $8.3 million for the same period in 2025. Our effective tax rate was 20.4 percent for the three months ended March 31, 2026 compared to 19.9 percent for the three months ended March 31, 2025. The increase in our effective tax rate for the three month period ended March 31, 2026 was primarily due to an increase in pretax income and state income tax expense compared to the same period in 2025.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Three months ended March 31, 2026 compared to Three months ended March 31, 2025 | |||||
Net Interest Income
Our principal source of revenue is net interest income. Net interest income represents the difference between the interest and fees earned on interest-earning assets and the interest paid on interest-bearing liabilities. Net interest income is affected by changes in the average balance of interest-earning assets and interest-bearing liabilities and changes in interest rates and spreads. The level and mix of interest-earning assets and interest-bearing liabilities is managed by our Asset and Liability Committee, or ALCO, in order to mitigate interest rate and liquidity risks of the balance sheet. A variety of ALCO strategies were implemented, within prescribed ALCO risk parameters, to produce what we believe is an acceptable level of net interest income.
Average Balance Sheet and Net Interest Income Analysis (FTE) (non-GAAP)
The following tables provide information regarding the average balances, interest and rates earned on interest-earning assets and interest and rates paid on interest-bearing liabilities for the periods presented:
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 153,396 | $ | 1,398 | 3.70 | % | $ | 128,739 | $ | 1,416 | 4.46 | % | ||||||||||||||||||||||||||||||||
Securities, at fair value(1)(2) | 997,037 | 9,426 | 3.78 | % | 990,414 | 8,875 | 3.59 | % | ||||||||||||||||||||||||||||||||||||
| Loans held for sale | 1,002 | 16 | 6.57 | % | — | — | — | % | ||||||||||||||||||||||||||||||||||||
| Commercial real estate | 3,579,903 | 51,234 | 5.80 | % | 3,395,599 | 48,740 | 5.82 | % | ||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 1,513,557 | 23,319 | 6.25 | % | 1,535,235 | 25,319 | 6.69 | % | ||||||||||||||||||||||||||||||||||||
| Commercial construction | 387,412 | 6,134 | 6.42 | % | 374,881 | 6,422 | 6.95 | % | ||||||||||||||||||||||||||||||||||||
| Total Commercial Loans | 5,480,872 | 80,687 | 5.97 | % | 5,305,715 | 80,481 | 6.15 | % | ||||||||||||||||||||||||||||||||||||
| Residential mortgage | 1,701,695 | 22,781 | 5.37 | % | 1,660,177 | 21,545 | 5.21 | % | ||||||||||||||||||||||||||||||||||||
| Home equity | 707,856 | 10,293 | 5.90 | % | 653,113 | 10,148 | 6.30 | % | ||||||||||||||||||||||||||||||||||||
| Installment and other consumer | 87,693 | 1,598 | 7.39 | % | 99,402 | 1,954 | 7.97 | % | ||||||||||||||||||||||||||||||||||||
| Consumer construction | 30,124 | 497 | 6.69 | % | 45,157 | 763 | 6.86 | % | ||||||||||||||||||||||||||||||||||||
| Total Consumer Loans | 2,527,368 | 35,169 | 5.61 | % | 2,457,849 | 34,410 | 5.64 | % | ||||||||||||||||||||||||||||||||||||
| Total Portfolio Loans | 8,008,240 | 115,856 | 5.86 | % | 7,763,564 | 114,891 | 5.99 | % | ||||||||||||||||||||||||||||||||||||
Total Loans(1)(3) | 8,009,242 | 115,872 | 5.86 | % | 7,763,564 | 114,891 | 5.99 | % | ||||||||||||||||||||||||||||||||||||
| Total other earning assets | 12,806 | 227 | 7.07 | % | 16,768 | 283 | 6.74 | % | ||||||||||||||||||||||||||||||||||||
| Total Interest-earning Assets | 9,172,481 | $ | 126,923 | 5.60 | % | 8,899,485 | $ | 125,465 | 5.70 | % | ||||||||||||||||||||||||||||||||||
| Noninterest-earning assets | 692,974 | 727,176 | ||||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | 9,865,455 | $ | 9,626,661 | ||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 778,502 | $ | 1,782 | 0.93 | % | $ | 779,309 | $ | 1,930 | 1.00 | % | ||||||||||||||||||||||||||||||||
| Money market | 2,245,922 | 14,407 | 2.60 | % | 2,088,346 | 15,276 | 2.97 | % | ||||||||||||||||||||||||||||||||||||
| Savings | 873,304 | 1,408 | 0.65 | % | 884,636 | 1,450 | 0.66 | % | ||||||||||||||||||||||||||||||||||||
| Certificates of deposit | 1,965,807 | 18,089 | 3.73 | % | 1,860,840 | 19,698 | 4.29 | % | ||||||||||||||||||||||||||||||||||||
| Total Interest-bearing Deposits | 5,863,535 | 35,686 | 2.47 | % | 5,613,131 | 38,354 | 2.77 | % | ||||||||||||||||||||||||||||||||||||
| Short-term borrowings | 74,162 | 730 | 3.99 | % | 117,722 | 1,344 | 4.63 | % | ||||||||||||||||||||||||||||||||||||
| Long-term borrowings | 50,805 | 476 | 3.80 | % | 50,886 | 477 | 3.80 | % | ||||||||||||||||||||||||||||||||||||
| Junior subordinated debt securities | 49,485 | 796 | 6.53 | % | 49,423 | 874 | 7.17 | % | ||||||||||||||||||||||||||||||||||||
| Total Borrowings | 174,452 | 2,002 | 4.66 | % | 218,031 | 2,695 | 5.01 | % | ||||||||||||||||||||||||||||||||||||
| Other interest-bearing liabilities | 22,862 | 209 | 3.69 | % | 43,926 | 476 | 4.40 | % | ||||||||||||||||||||||||||||||||||||
| Total Interest-bearing Liabilities | 6,060,849 | 37,897 | 2.54 | % | 5,875,088 | 41,525 | 2.87 | % | ||||||||||||||||||||||||||||||||||||
| Noninterest-bearing liabilities | 2,348,924 | 2,350,574 | ||||||||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 1,455,682 | 1,400,999 | ||||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 9,865,455 | $ | 9,626,661 | ||||||||||||||||||||||||||||||||||||||||
Net Interest Income (FTE) (non-GAAP)(1)(2) | $ | 89,026 | $ | 83,940 | ||||||||||||||||||||||||||||||||||||||||
Net Interest Margin (FTE) (non-GAAP)(1)(2) | 3.92 | % | 3.81 | % | ||||||||||||||||||||||||||||||||||||||||
(1) Tax-exempt interest income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.
(2) Taxable investment income is adjusted for the dividend-received deduction for equity securities.
(3) Nonaccruing loans are included in the daily average loan amounts outstanding.
Net interest income on an FTE basis (non-GAAP) increased $5.1 million, or 6.06 percent, for the three months ended March 31, 2026 compared to the same period in 2025. The net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points to 3.92 percent for the three months ended March 31, 2026 compared to 3.81 percent in the same period in 2025. The increases in net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest-bearing liabilities.
Interest income on an FTE basis (non-GAAP) increased $1.5 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase in interest income on an FTE basis (non-GAAP) was primarily driven by a $245.7 million increase in total portfolio loans that more than offset the impact of declining loan yields. The average yield on loans decreased 13 basis points compared to the same period in 2025 due to lower interest rates. Interest income on an FTE basis (non-GAAP) also improved due to an increase in securities yield of 19 basis points to 3.78 percent compared to 3.59 percent in the same period in 2025. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 10 basis points for the three months ended March 31, 2026 compared to the same period in 2025.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Interest expense decreased $3.6 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease in interest expense was primarily due to a decline in interest rates. Average interest-bearing deposits increased $250.4 million for the three months ended March 31, 2026 compared to the same period in 2025. Average borrowings decreased $43.6 million for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to an increase in deposits. Overall, the cost of interest-bearing liabilities decreased 33 basis points for the three months ended March 31, 2026 compared to the same period in 2025.
The following table sets forth a summary of the changes in interest earned and interest paid resulting from changes in volume and changes in rates for the periods presented:
(1) Tax-exempt income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.
| Three Months Ended March 31, 2026 Compared to March 31, 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Volume (4) | Rate (4) | Total | ||||||||||||||||||||
| Interest earned on: | |||||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 271 | $ | (289) | $ | (18) | |||||||||||||||||
Securities, at fair value(1)(2) | 59 | 491 | 550 | ||||||||||||||||||||
| Loans held for sale | 16 | — | 16 | ||||||||||||||||||||
| Commercial real estate | 2,645 | (152) | 2,493 | ||||||||||||||||||||
| Commercial and industrial | (357) | (1,643) | (2,000) | ||||||||||||||||||||
| Commercial construction | 215 | (503) | (288) | ||||||||||||||||||||
| Total Commercial Loans | 2,503 | (2,298) | 205 | ||||||||||||||||||||
| Residential mortgage | 539 | 699 | 1,238 | ||||||||||||||||||||
| Home equity | 851 | (706) | 145 | ||||||||||||||||||||
| Installment and other consumer | (230) | (126) | (356) | ||||||||||||||||||||
| Consumer construction | (254) | (12) | (266) | ||||||||||||||||||||
| Total Consumer Loans | 906 | (145) | 761 | ||||||||||||||||||||
| Total Portfolio Loans | 3,409 | (2,443) | 966 | ||||||||||||||||||||
Total Loans(1)(3) | 3,425 | (2,443) | 982 | ||||||||||||||||||||
| Total other earning assets | (67) | 11 | (56) | ||||||||||||||||||||
| Change in Interest Earned on Interest-earning Assets | $ | 3,688 | $ | (2,230) | $ | 1,458 | |||||||||||||||||
| Interest paid on: | |||||||||||||||||||||||
| Interest-bearing demand | $ | (2) | $ | (146) | $ | (148) | |||||||||||||||||
| Money market | 1,153 | (2,021) | (868) | ||||||||||||||||||||
| Savings | (19) | (24) | (43) | ||||||||||||||||||||
| Certificates of deposit | 1,111 | (2,720) | (1,609) | ||||||||||||||||||||
| Total Interest-bearing Deposits | 2,243 | (4,911) | (2,668) | ||||||||||||||||||||
| Short-term borrowings | (497) | (116) | (613) | ||||||||||||||||||||
| Long-term borrowings | (1) | — | (1) | ||||||||||||||||||||
| Junior subordinated debt securities | 1 | (79) | (78) | ||||||||||||||||||||
| Total Borrowings | (497) | (195) | (692) | ||||||||||||||||||||
| Other interest-bearing liabilities | (228) | (40) | (268) | ||||||||||||||||||||
| Change in Interest Paid on Interest-bearing Liabilities | 1,518 | (5,146) | (3,628) | ||||||||||||||||||||
| Change in Net Interest Income | $ | 2,170 | $ | 2,916 | $ | 5,086 | |||||||||||||||||
(2) Taxable investment income is adjusted for the dividend-received deduction for equity securities.
(3) Nonaccruing loans are included in the daily average loan amounts outstanding.
(4) Changes to rate/volume are allocated to both rate and volume on a proportionate dollar basis.
Provision for Credit Losses
The provision for credit losses includes provisions for losses on loans and on unfunded loan commitments. The provision for credit losses fluctuates based on changes in loan balances, loan risk ratings, net loan charge-offs and recoveries, the macro environment and our Current Expected Credit Losses, or CECL, forecast.
The provision for credit losses increased $4.3 million to $1.3 million for the three months ended March 31, 2026 compared to negative $3.0 million for the same period in 2025. The increase was primarily due to higher net loan charge-offs and an increase in specific reserve for loans individually evaluated.
Net loan charge-offs were $1.7 million for the three months ended March 31, 2026 compared to net loan charge-offs of $0.0 million for the same period in 2025. Refer to the "Allowance for Credit Losses" section of this MD&A for further details.
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Noninterest Income
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net loss on sale of securities | $ | — | $ | (2,295) | $ | 2,295 | (100.0) | % | |||||||||||||||||||||||||||||||||||||||||||||
Debit and credit card | 4,283 | 4,188 | 95 | 2.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 4,196 | 3,962 | 234 | 5.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment services and trust | 3,369 | 3,084 | 285 | 9.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest income | 1,794 | 1,490 | 304 | 20.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total Noninterest Income | $ | 13,642 | $ | 10,429 | $ | 3,213 | 30.8 | % | |||||||||||||||||||||||||||||||||||||||||||||
Noninterest income increased $3.2 million to $13.6 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was mainly related to $2.3 million in realized losses from the repositioning of securities into longer duration, higher-yielding securities which occurred in 2025 and is not present in 2026.
Noninterest Expense
| Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | $ Change | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 31,356 | $ | 29,853 | $ | 1,503 | 5.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Data processing and information technology | 5,158 | 4,930 | 228 | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy | 4,592 | 4,302 | 290 | 6.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Furniture, equipment and software | 3,492 | 3,483 | 9 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Other taxes | 2,063 | 1,494 | 569 | 38.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Marketing | 1,467 | 1,615 | (148) | (9.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Professional services and legal | 1,245 | 1,286 | (41) | (3.2) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| FDIC insurance | 1,073 | 1,040 | 33 | 3.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 6,261 | 7,088 | (827) | (11.7) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total Noninterest Expense | $ | 56,707 | $ | 55,091 | $ | 1,616 | 2.9 | % | |||||||||||||||||||||||||||||||||||||||||||||
Noninterest expense increased $1.6 million to $56.7 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase in noninterest expense mainly related to higher salaries and employee benefits of $1.5 million primarily due to increased salary, medical and incentive costs. Other taxes increased $0.6 million primarily due to the timing of contributions to the Educational Improvement Tax Credit Program and other noninterest expense decreased $0.8 million primarily due to the same contribution timing. These contributions are reported in other expense and generate tax credits that reduce shares tax expense, which is included in other taxes.
Provision for Income Taxes
The provision for income taxes increased $0.7 million to $9.0 million for the three months ended March 31, 2026 compared to $8.3 million for the same period in 2025. Our effective tax rate was 20.4 percent for the three months ended March 31, 2026 compared to 19.9 percent for the for the three months ended March 31, 2025. The increase in our effective tax rate for the three months ended March 31, 2026 was primarily due to an increase in pretax income and state income tax expense compared to the same period in 2025.
Financial Condition at March 31, 2026
Total assets were $9.9 billion at both March 31, 2026 and December 31, 2025. Cash and due from banks increased $175.6 million related to a significant increase in deposits and a decline in loans compared to December 31, 2025. Total portfolio loans decreased $112.6 million, or 1.4 percent, to $8.0 billion at March 31, 2026 compared to December 31, 2025. The commercial loan portfolio decreased $79.0 million and the consumer loan portfolio decreased $33.6 million compared to December 31, 2025. The decline in loans related to lower fundings, reduced utilization and higher commercial real estate loan payoffs.
Securities increased $21.9 million to $1.0 billion at March 31, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily due to purchases offset by an increase in unrealized losses as a result of higher interest rates. The securities portfolio was in a net unrealized loss position of $42.7 million at March 31, 2026 compared to a net unrealized loss position of $34.9 million at December 31, 2025.
Total deposits increased $226.4 million, or 2.8 percent, to $8.2 billion at March 31, 2026 compared to $8.0 billion at December 31, 2025. Customer deposits increased $306.5 million, or 3.9 percent, to $8.1 billion at March 31, 2026 compared to $7.8 billion at December 31, 2025 driven by broad-based growth across all lines of business and nearly all deposit product
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categories. The increase in customer deposits allowed for a reduction in brokered deposits which decreased $80.1 million to $100.3 million at March 31, 2026 compared to $180.4 million at December 31, 2025.
Total borrowings decreased $115.0 million to $150.3 million at March 31, 2026 compared to $265.3 million at December 31, 2025 due to strong customer deposit growth.
Total shareholders’ equity decreased by $33.2 million to $1.4 billion at March 31, 2026 compared to December 31, 2025. The decrease was primarily due to repurchases of S&T common stock of $50.2 million which includes excise tax and commissions of $0.6 million, other comprehensive loss of $5.8 million and dividends of $13.4 million offset by net income of $35.1 million. During the first quarter of 2026, 1,146,100 common shares were repurchased at an average price of $43.30 per share.
Securities Activity
The following table summarizes our securities portfolio at the dates presented:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | $ Change | |||||||||||||||||||||||||||||||||||||||||
| U.S. Treasury securities | $ | 84,161 | $ | 84,507 | $ | (346) | ||||||||||||||||||||||||||||||||||||||
| Obligations of U.S. government corporations and agencies | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Collateralized mortgage obligations of U.S. government corporations and agencies | 626,502 | 624,263 | 2,239 | |||||||||||||||||||||||||||||||||||||||||
| Residential mortgage-backed securities of U.S. government corporations and agencies | 33,094 | 31,336 | 1,758 | |||||||||||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities of U.S. government corporations | 259,505 | 241,262 | 18,243 | |||||||||||||||||||||||||||||||||||||||||
| Obligations of states and political subdivisions | 4,878 | 4,909 | (31) | |||||||||||||||||||||||||||||||||||||||||
| Available-for-Sale Debt Securities | 1,008,140 | 986,277 | 21,863 | |||||||||||||||||||||||||||||||||||||||||
| Equity securities | 1,378 | 1,382 | (4) | |||||||||||||||||||||||||||||||||||||||||
| Total Securities Available for Sale | $ | 1,009,518 | $ | 987,659 | $ | 21,859 | ||||||||||||||||||||||||||||||||||||||
We invest in various securities in order to maintain a source of liquidity, to satisfy various pledging requirements, to increase net interest income and as a tool of ALCO to reposition the balance sheet for interest rate risk purposes. Securities are subject to market risks that could negatively affect the level of liquidity available to us.
The securities portfolio increased $21.9 million to $1.0 billion at March 31, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily related to purchases offset by an increase in unrealized losses of $7.8 million at March 31, 2026 compared to December 31, 2025 as a result of higher interest rates. Our debt securities portfolio was in a net unrealized loss position of $42.7 million at March 31, 2026 compared to a net unrealized loss position of $34.9 million at December 31, 2025. At March 31, 2026, our debt securities portfolio had gross unrealized losses of $46.3 million offset by $3.6 million of gross unrealized gains compared to gross unrealized losses of $42.4 million offset by gross unrealized gains of $7.5 million at December 31, 2025.
Loan Composition
The following table summarizes our loan portfolio at the dates presented:
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | % of Total | Amount | % of Total | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | $ | 3,532,106 | 44.4 | % | $ | 3,626,784 | 44.9 | % | $ | (94,678) | (2.6) | % | ||||||||||||||||||||||||||||||||||||||||||||
| Commercial and industrial | 1,511,082 | 19.0 | % | 1,519,336 | 18.9 | % | (8,254) | (0.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial construction | 404,012 | 5.0 | % | 380,091 | 4.7 | % | 23,921 | 6.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Commercial Loans | 5,447,200 | 68.4 | % | 5,526,211 | 68.5 | % | (79,011) | (1.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer real estate | 2,428,231 | 30.5 | % | 2,454,466 | 30.4 | % | (26,235) | (1.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Other consumer | 83,951 | 1.1 | % | 91,280 | 1.1 | % | (7,329) | (8.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Consumer Loans | 2,512,182 | 31.6 | % | 2,545,746 | 31.5 | % | (33,564) | (1.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Total Portfolio Loans | $ | 7,959,382 | 100.0 | % | $ | 8,071,957 | 100.0 | % | $ | (112,575) | (1.4) | % | ||||||||||||||||||||||||||||||||||||||||||||
The loan portfolio represents the most significant source of interest income for us. The risk that borrowers will be unable to pay such obligations is inherent in the loan portfolio. Other conditions, such as downturns in the borrower’s industry or the overall economic climate, can significantly impact the borrower’s ability to pay.
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Total portfolio loans were $8.0 billion at March 31, 2026 compared to $8.1 billion at December 31, 2025. The decline in commercial loans related to reduced utilization rates and higher commercial real estate loan payoffs. Additionally, we experienced increased competition in pricing and loan structure which contributed to lower-than-anticipated new fundings for the three months ended March 31, 2026.
Commercial loans, including CRE, C&I and commercial construction comprised 68.4 percent of total portfolio loans at March 31, 2026 compared to 68.5 percent at December 31, 2025. The commercial loan portfolio decreased $79.0 million at March 31, 2026 compared to December 31, 2025 due to decreases of $94.7 million in CRE and $8.3 million in C&I offset by an increase of $23.9 million in commercial construction.
Consumer loans represent 31.6 percent of our total portfolio loans at March 31, 2026 compared to 31.5 percent at December 31, 2025. The consumer loan portfolio decreased $33.6 million at March 31, 2026 compared to December 31, 2025 due to decreases of $26.2 million in consumer real estate and $7.3 million in other consumer loans. At both March 31, 2026 and December 31, 2025, 23 percent of our total loans were adjustable rate, 37 percent were floating rate and 40 percent were fixed rate.
Allowance for Credit Losses
We maintain an ACL at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer. Refer to Part 1. Financial Information, Note 5. Loans and Allowance for Credit Losses for details on our portfolio segments.
The following table presents activity in the ACL for the period presented:
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Commercial Real Estate | Commercial and Industrial | Commercial Construction | Business Banking | Consumer Real Estate | Other Consumer | Total Loans | ||||||||||||||||||||||||||||||||||
| Allowance for credit losses on loans: | |||||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | 29,357 | $ | 29,142 | $ | 4,400 | $ | 11,335 | $ | 16,297 | $ | 2,647 | $ | 93,178 | |||||||||||||||||||||||||||
Provision for credit losses on loans(1) | (974) | 1,684 | 253 | 120 | 147 | 550 | 1,780 | ||||||||||||||||||||||||||||||||||
| Charge-offs | — | (198) | — | (554) | (301) | (882) | (1,935) | ||||||||||||||||||||||||||||||||||
| Recoveries | 2 | 65 | — | 18 | 38 | 125 | 248 | ||||||||||||||||||||||||||||||||||
| Net Recoveries (Charge-offs) | 2 | (133) | — | (536) | (263) | (757) | (1,687) | ||||||||||||||||||||||||||||||||||
| Balance at End of Period | $ | 28,385 | $ | 30,693 | $ | 4,653 | $ | 10,919 | $ | 16,181 | $ | 2,440 | $ | 93,271 | |||||||||||||||||||||||||||
(1) Excludes the provision for credit losses for unfunded commitments. | |||||||||||||||||||||||||||||||||||||||||
The following table presents key ACL ratios for the periods presented:
| March 31, 2026 | December 31, 2025 | ||||||||||
Ratio of net charge-offs to average loans outstanding(1) | 0.09 | % | 0.18 | % | |||||||
| Allowance for credit losses as a percentage of total portfolio loans | 1.17 | % | 1.15 | % | |||||||
| Allowance for credit losses to nonaccrual loans | 187 | % | 168 | % | |||||||
(1) Year-to-date net charge-offs annualized
The ACL increased $0.1 million to $93.3 million, or 1.17 percent of total portfolio loans, at March 31, 2026 compared to $93.2 million, or 1.15 percent of total portfolio loans, at December 31, 2025. The increase in the ACL and ACL as a percentage of total portfolio loans was primarily due to an increase of $1.0 million in specific reserves for loans individually evaluated and higher special mention loans which was partially offset by lower substandard and total loan balances.
Substandard loans decreased $10.5 million to $114.6 million at March 31, 2026 compared to $125.1 million at December 31, 2025. The decrease in the amount of substandard loans was primarily due to loan paydowns. Special mention loans increased $57.8 million to $126.8 million at March 31, 2026 compared to $69.0 million at December 31, 2025. The increase in special mention loans was related to downgrades of three C&I relationships and one CRE relationship.
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Nonperforming assets, or NPAs, consist of nonaccrual loans and OREO. The following represents NPAs at the dates presented:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | $ Change | |||||||||||||||||||||||
| Nonaccrual Loans | ||||||||||||||||||||||||||
| Commercial real estate | $ | 17,764 | $ | 17,373 | $ | 391 | ||||||||||||||||||||
| Commercial and industrial | 18,607 | 25,575 | (6,968) | |||||||||||||||||||||||
| Commercial construction | 869 | 869 | — | |||||||||||||||||||||||
| Consumer real estate | 12,568 | 11,583 | 985 | |||||||||||||||||||||||
| Other Consumer | 141 | 158 | (17) | |||||||||||||||||||||||
| Total Nonaccrual Loans | 49,949 | 55,558 | (5,609) | |||||||||||||||||||||||
| OREO | — | 57 | (57) | |||||||||||||||||||||||
| Total Nonperforming Assets | $ | 49,949 | $ | 55,615 | $ | (5,666) | ||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||
| Nonaccrual loans as a percent of total portfolio loans | 0.63 | % | 0.69 | % | (0.06) | % | ||||||||||||||||||||
| Nonperforming assets as a percent of total portfolio loans plus OREO | 0.63 | % | 0.69 | % | (0.06) | % | ||||||||||||||||||||
Our policy is to place loans in all categories in nonaccrual status when collection of interest or principal is doubtful, or generally when interest or principal payments are 90 days or more past the contractual due date. Nonaccrual loans decreased $5.7 million to $49.9 million at March 31, 2026 compared to $55.6 million at December 31, 2025. The decrease in nonaccrual loans was primarily due to paydowns in the C&I portfolio.
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Deposits
Deposits are our primary source of funds. The following table presents the composition of deposits at the dates presented:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | $ Change | |||||||||||||||||||||||
| Customer Deposits | ||||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 2,273,411 | $ | 2,160,645 | $ | 112,766 | ||||||||||||||||||||
| Interest-bearing demand | 784,326 | 790,278 | (5,952) | |||||||||||||||||||||||
| Money market | 2,164,415 | 2,016,560 | 147,855 | |||||||||||||||||||||||
| Savings | 883,213 | 862,118 | 21,095 | |||||||||||||||||||||||
| Certificates of deposit | 1,979,492 | 1,948,792 | 30,700 | |||||||||||||||||||||||
| Total Customer Deposits | 8,084,857 | 7,778,393 | 306,464 | |||||||||||||||||||||||
| Brokered Deposits | ||||||||||||||||||||||||||
| Money market | 100,362 | 180,438 | (80,076) | |||||||||||||||||||||||
| Total Brokered Deposits | 100,362 | 180,438 | (80,076) | |||||||||||||||||||||||
| Total Deposits | $ | 8,185,219 | $ | 7,958,831 | $ | 226,388 | ||||||||||||||||||||
Total deposits increased $226.4 million, or 2.8 percent, at March 31, 2026 compared to December 31, 2025 as a result of our continued focus on growing our deposit franchise. Customer deposits increased $306.5 million, or 3.9 percent, compared to December 31, 2025, driven by broad-based growth across all lines of business and nearly all product categories. While most of this increase reflects growth in our customer deposit base, a portion relates to seasonality and temporary inflows that are not expected to remain. Growth in customer deposits also enabled a reduction in brokered deposits, which decreased $80.1 million from December 31, 2025. Brokered deposits are an additional source of funds utilized by ALCO as a way to diversify funding sources, as well as manage our funding costs and structure.
As a member of the IntraFi network, we are able to offer our customers insurance coverage on interest-bearing demand, money market and certificates of deposit balances in excess of the FDIC insurance limits. IntraFi balances were $330.4 million at March 31, 2026 compared to $317.3 million at December 31, 2025.
We had total uninsured deposits of $2.9 billion, or 35.8 percent of our total deposit base, at March 31, 2026 compared to $2.7 billion, or 33.7 percent of our total deposit base, at December 31, 2025.
Borrowings
Borrowings are an additional source of funding for us. Short-term borrowings are for terms under or equal to one year and are comprised of FHLB Advances. Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances and finance leases. Total borrowings decreased $115.0 to $150.3 million at March 31, 2026 compared to $265.3 million at December 31, 2025 due to strong customer deposit growth and lower loan balances.
The following table presents the composition of total borrowings at the dates presented:
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | $ Change | |||||||||||||||||||||||
| Short-term borrowings | $ | 50,000 | $ | 165,000 | $ | (115,000) | ||||||||||||||||||||
| Long-term borrowings | 50,794 | 50,815 | (21) | |||||||||||||||||||||||
| Junior subordinated debt securities | 49,493 | 49,478 | 15 | |||||||||||||||||||||||
| Total Borrowings | $ | 150,287 | $ | 265,293 | $ | (115,006) | ||||||||||||||||||||
Information pertaining to short-term borrowings is summarized in the table below for the three months ended March 31, 2026 and for the twelve months ended December 31, 2025:
| Short-Term Borrowings | ||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Balance at the period end | $ | 50,000 | $ | 165,000 | ||||||||||
| Average balance during the period | $ | 74,162 | $ | 111,453 | ||||||||||
| Average interest rate during the period | 3.99 | % | 4.53 | % | ||||||||||
| Maximum month-end balance during the period | $ | 115,000 | $ | 165,000 | ||||||||||
| Average interest rate at the period end | 3.73 | % | 3.93 | % | ||||||||||
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Information for long-term borrowings and junior subordinated debt securities is summarized in the tables below for the three months ended March 31, 2026 and for the twelve months ended December 31, 2025:
| Long-Term Borrowings | ||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Balance at the period end | $ | 50,794 | $ | 50,815 | ||||||||||
| Average balance during the period | $ | 50,805 | $ | 50,856 | ||||||||||
| Average interest rate during the period | 3.80 | % | 3.80 | % | ||||||||||
| Maximum month-end balance during the period | $ | 50,809 | $ | 50,890 | ||||||||||
| Average interest rate at the period end | 3.74 | % | 3.75 | % | ||||||||||
| Junior Subordinated Debt Securities | ||||||||||||||
| (dollars in thousands) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Balance at the period end | $ | 49,493 | $ | 49,478 | ||||||||||
| Average balance during the period | $ | 49,485 | $ | 49,446 | ||||||||||
| Average interest rate during the period | 6.53 | % | 7.04 | % | ||||||||||
| Maximum month-end balance during the period | $ | 49,493 | $ | 49,478 | ||||||||||
| Average interest rate at the period end | 6.26 | % | 6.33 | % | ||||||||||
Liquidity and Capital Resources
Liquidity is defined as a financial institution’s ability to meet its cash and collateral obligations at a reasonable cost. Our primary future cash needs are centered on the ability to (i) satisfy the financial needs of depositors who may want to withdraw funds or of borrowers needing to access funds to meet their credit needs and (ii) to meet our future cash commitments under contractual obligations with third parties. In order to manage liquidity risk, our Board of Directors has delegated authority to ALCO for the formulation, implementation and oversight of liquidity risk management for S&T. ALCO’s goal is to maintain adequate levels of liquidity at a reasonable cost to meet funding needs in both a normal operating environment and for potential liquidity stress events. ALCO monitors and manages liquidity through various ratios, reviewing cash flow projections, performing stress tests and having a detailed contingency funding plan. ALCO policy guidelines define graduated risk tolerance levels. If our liquidity position moves to a level that has been defined as high risk, specific actions are required, such as increased monitoring or the development of an action plan to reduce the risk position.
Our primary funding and liquidity source is a stable customer deposit base. We believe S&T has the ability to retain existing deposits and attract new deposits, mitigating any funding dependency on other more volatile funding sources. Refer to the "Financial Condition at March 31, 2026 - Deposits" section of this MD&A, for additional discussion on deposits. Although deposits are the primary source of funds, we have identified various other funding sources that can be used as part of our normal funding program. Additional funding sources accessible to us include borrowing availability at the FHLB, Federal Reserve Discount Window through the Borrower-in-Custody Program, federal funds lines with other financial institutions and the brokered deposit market.
Available borrowing capacity exceeds uninsured deposits of $2.9 billion at March 31, 2026. The following table summarizes funding sources available at the dates presented:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| (dollars in thousands) | Borrowing Capacity | Balance (1) | Available | Borrowing Capacity | Balance (1) | Available | |||||||||||||||||
FHLB(1) | $ | 2,117,159 | $ | 266,539 | $ | 1,850,620 | $ | 2,132,446 | $ | 339,614 | $ | 1,792,832 | |||||||||||
| Borrower-in-Custody Program | 2,115,033 | — | 2,115,033 | 2,124,366 | — | 2,124,366 | |||||||||||||||||
| Total | $ | 4,232,192 | $ | 266,539 | $ | 3,965,653 | $ | 4,256,812 | $ | 339,614 | $ | 3,917,198 | |||||||||||
(1) FHLB balances include advances, letters of credit, interest due on advances and the credit enhancement obligation on mortgages sold to the FHLB. | |||||||||||||||||||||||
We have contractual obligations representing required future payments on certificates of deposit, junior subordinated debt securities, short-term borrowings, long-term borrowings, operating and capital leases, funding commitments on tax credit equity investments and purchase obligations. See the "Liquidity and Capital Resources" section presented in our 2025 Form 10-K under Part II, Item 7- "Management’s Discussion and Analysis of Financial Condition and Results of Operations" for more information on these future cash outflows. There have been no material changes to the contractual obligations previously disclosed in our 2025 Form 10-K.
An important component of our ability to effectively respond to potential liquidity stress events is maintaining a cushion of highly liquid assets. Highly liquid assets are those that can be converted to cash quickly to meet financial obligations. ALCO
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
policy guidelines define a ratio of highly liquid assets to total assets by graduated risk tolerance levels of minimal, moderate and high. At March 31, 2026, S&T Bank had $1.0 billion in highly liquid assets which consisted primarily of $276.0 million in interest-bearing deposits with banks and $763.0 million in unpledged securities. This resulted in a highly liquid assets to total assets ratio of 10.5 percent at March 31, 2026.
We continue to maintain a strong capital position with our capital ratios in excess of the well-capitalized regulatory guidelines. The following table summarizes capital amounts and ratios for S&T and S&T Bank at the dates presented:
| (dollars in thousands) | Adequately Capitalized | Well- Capitalized | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||
| S&T Bancorp, Inc. | ||||||||||||||||||||||||||
| Tier 1 leverage | 4.00 | % | 5.00 | % | $ | 1,127,098 | 11.82 | % | $ | 1,154,736 | 12.18 | % | ||||||||||||||
| Common equity tier 1 to risk-weighted assets | 4.50 | % | 6.50 | % | 1,103,098 | 14.18 | % | 1,130,736 | 14.32 | % | ||||||||||||||||
| Tier 1 capital to risk-weighted assets | 6.00 | % | 8.00 | % | 1,127,098 | 14.49 | % | 1,154,736 | 14.62 | % | ||||||||||||||||
| Total capital to risk-weighted assets | 8.00 | % | 10.00 | % | 1,249,357 | 16.06 | % | 1,278,474 | 16.19 | % | ||||||||||||||||
| S&T Bank | ||||||||||||||||||||||||||
| Tier 1 leverage | 4.00 | % | 5.00 | % | $ | 1,078,156 | 11.31 | % | $ | 1,128,495 | 11.91 | % | ||||||||||||||
| Common equity tier 1 to risk-weighted assets | 4.50 | % | 6.50 | % | 1,078,156 | 13.87 | % | 1,128,495 | 14.30 | % | ||||||||||||||||
| Tier 1 capital to risk-weighted assets | 6.00 | % | 8.00 | % | 1,078,156 | 13.87 | % | 1,128,495 | 14.30 | % | ||||||||||||||||
| Total capital to risk-weighted assets | 8.00 | % | 10.00 | % | 1,200,374 | 15.44 | % | 1,252,175 | 15.86 | % | ||||||||||||||||
We have filed a shelf registration statement on Form S-3 under the Securities Act of 1933, as amended, with the SEC which allows for the issuance of a variety of securities including debt and capital securities, preferred and common stock and warrants. We may use the proceeds from the sale of securities for general corporate purposes which could include investments at the holding company level, investing in, or extending credit to subsidiaries, possible acquisitions and stock repurchases. We have not issued any securities pursuant to this shelf registration statement at March 31, 2026.
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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk is defined as the degree to which changes in interest rates, foreign exchange rates, commodity prices or equity prices can adversely affect a financial institution’s earnings or capital. For most financial institutions, including S&T, market risk primarily reflects exposures to changes in interest rates. Interest rate fluctuations affect earnings by changing net interest income and other interest-sensitive income and expense levels. Interest rate changes also affect capital by changing the net present value of a bank’s future cash flows, and the cash flows themselves, as rates change. Accepting this risk is a normal part of banking and can be an important source of profitability and enhancing shareholder value. However, excessive interest rate risk can threaten a bank’s earnings, capital, liquidity and solvency. Our sensitivity to changes in interest rate movements is continually monitored by ALCO. ALCO monitors and manages market risk through rate shock analyses, economic value of equity, or EVE, analyses and by performing stress tests and simulations to mitigate earnings and market value fluctuations due to changes in interest rates.
Rate shock analyses results are compared to a base case to provide an estimate of the impact that market rate changes may have on 12 and 24 months of pretax net interest income. The base case and rate shock analyses are performed on a static balance sheet. A static balance sheet is a no growth balance sheet in which all maturing and/or repricing cash flows are reinvested in the same product at the existing product spread. Rate shock analyses assume an immediate parallel shift in market interest rates and also include management assumptions regarding the impact of interest rate changes on non-maturity deposit products (noninterest-bearing demand, interest-bearing demand, money market and savings) and changes in the prepayment behavior of loans and securities with optionality. S&T policy guidelines limit the change in pretax net interest income over 12 and 24 month horizons using rate shocks in increments of +/- 100 basis points. Policy guidelines define the percentage change in pretax net interest income by graduated risk tolerance levels of minimal, moderate and high.
In order to monitor interest rate risk beyond the 24 month time horizon of rate shocks on pretax net interest income, we also perform EVE analyses. EVE represents the present value of all asset cash flows minus the present value of all liability cash flows. EVE change results are compared to a base case to determine the impact that market rate changes may have on our EVE. As with rate shock analyses on pretax net interest income, EVE analyses incorporate management assumptions regarding prepayment behavior of fixed rate loans and securities with optionality and the behavior and value of non-maturity deposit products. S&T policy guidelines limit the change in EVE using rate shocks in increments of +/- 100 basis points. Policy guidelines define the percentage change in EVE by graduated risk tolerance levels of minimal, moderate and high.
The table below reflects the rate shock analyses results for the 1-12 and 13-24 month periods of pretax net interest income and EVE:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| 1 - 12 Months | 13 - 24 Months | % Change in EVE | 1 - 12 Months | 13 - 24 Months | % Change in EVE | ||||||||||||||||||||||||||||||
| Change in Interest Rate (basis points) | % Change in Pretax Net Interest Income | % Change in Pretax Net Interest Income | % Change in Pretax Net Interest Income | % Change in Pretax Net Interest Income | |||||||||||||||||||||||||||||||
| 400 | 7.1 | 11.4 | (10.6) | 1.7 | 9.4 | (12.4) | |||||||||||||||||||||||||||||
| 300 | 5.1 | 8.3 | (6.6) | 1.1 | 6.9 | (7.9) | |||||||||||||||||||||||||||||
| 200 | 3.6 | 5.9 | (2.7) | 0.9 | 5.0 | (3.6) | |||||||||||||||||||||||||||||
| 100 | 1.9 | 3.3 | (0.2) | 0.6 | 2.9 | (0.6) | |||||||||||||||||||||||||||||
| -100 | (3.0) | (4.9) | (3.4) | (1.8) | (4.5) | (3.1) | |||||||||||||||||||||||||||||
| -200 | (6.3) | (10.7) | (10.4) | (4.0) | (10.2) | (9.7) | |||||||||||||||||||||||||||||
| -300 | (10.0) | (17.6) | (22.0) | (6.8) | (17.0) | (21.2) | |||||||||||||||||||||||||||||
The results from the rate shock analyses on net interest income are generally consistent with having an asset sensitive balance sheet. Having an asset sensitive balance sheet means more assets than liabilities will reprice during the measured time frames. The implications of an asset sensitive balance sheet will differ depending upon the change in market interest rates. For example, with an asset sensitive balance sheet in a declining interest rate environment, more assets than liabilities will decrease in rate. This situation could result in a decrease in net interest income and operating income. Conversely, with an asset sensitive balance sheet in a rising interest rate environment, more assets than liabilities will increase in rate. This situation could result in an increase in net interest income and operating income.
Our rate shock analyses show more improvement in the percentage change in pretax net interest income in the 1-12 month rates up scenarios when comparing March 31, 2026 to December 31, 2025 primarily because of temporary increased cash levels which were used to reduce wholesale funding. The remaining impact is due to increased floating rate loans and upcoming maturities within our receive-fixed balance sheet swap portfolio. The percentage change in pretax net interest income in the 1-12 month rates down scenarios remain relatively unchanged when comparing March 31, 2026 to December 31, 2025. Our rate shock analyses remain relatively unchanged in the percentage change in pretax net interest income in the 13-24 month scenarios when comparing March 31, 2026 to December 31, 2025. Our EVE analyses remain relatively unchanged in the
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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
percentage change in pretax net interest income in the 13-24 month scenarios when comparing March 31, 2026 to December 31, 2025.
In addition to rate shocks and EVE analyses, we perform a market risk stress test at least annually. The market risk stress test includes sensitivity analyses and simulations. Sensitivity analyses are performed to help us identify which model assumptions cause the greatest impact on pretax net interest income. Sensitivity analyses may include changing prepayment behavior of loans and securities with optionality and the impact of interest rate changes on non-maturity deposit products. Simulation analyses may include the potential impact of more dynamic rate changes beyond rate shocks, yield curve shape changes, significant balance mix changes and various growth scenarios.
Item 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of S&T’s Chief Executive Officer, or CEO, and Chief Financial Officer, or CFO (its principal executive officer and principal financial officer, respectively), management has evaluated the effectiveness of the design and operation of S&T’s disclosure controls and procedures as of March 31, 2026. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods required by the Securities and Exchange Commission, or the SEC, and that such information is accumulated and communicated to S&T’s management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Based on and as of the date of such evaluation, our CEO and CFO concluded that the design and operation of our disclosure controls and procedures were effective in all material respects, as of the end of the period covered by this report.
Changes in Internal Control over Financial Reporting
During the quarter ended March 31, 2026, there were no changes made to S&T’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that materially affected, or are reasonably likely to materially affect, S&T’s internal control over financial reporting.
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S&T BANCORP, INC. AND SUBSIDIARIES
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 1A. Risk Factors
There have been no material changes to the risk factors that we have previously disclosed in Part I, Item 1A – “Risk Factors” in our 2025 Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Purchases of Equity Securities
The following table is a summary of our purchases of common stock during the first quarter of 2026:
| Period | Total number of shares purchased | Average price paid per share(1) | Total number of shares purchased as part of publicly announced plan | Approximate dollar value of shares that may yet be purchased under the plan(1) | ||||||||||||||||||||||||||||
| 01/01/2026-01/31/2026 | 184,000 | $ | 42.05 | 184,000 | $ | 92,263,396 | ||||||||||||||||||||||||||
| 02/01/2026-02/28/2026 | 799,100 | 43.72 | 799,100 | 57,326,149 | ||||||||||||||||||||||||||||
| 03/01/2026-03/31/2026 | 163,000 | 42.62 | 163,000 | 50,379,376 | ||||||||||||||||||||||||||||
| Total | 1,146,100 | $ | 43.30 | 1,146,100 | $ | 50,379,376 | ||||||||||||||||||||||||||
(1)Excludes excise tax and commissions.
On January 21, 2026, our Board of Directors authorized a new $100 million share repurchase program effective January 26, 2026 which is set to expire February 1, 2027. The new program authorizes the share repurchase of S&T's common stock from time to time through a combination of open market and privately negotiated transactions up to the authorized $100 million aggregate value of S&T's common stock. The specific timing, price and quantity of repurchases will be at the discretion of S&T and will depend on a variety of factors, including general market conditions, the trading price of the common stock, applicable securities laws and other legal and contractual requirements, as well as S&T's financial performance. The repurchase program does not obligate S&T to repurchase any particular number of shares and may be extended, modified or discontinued at any time. At March 31, 2026, 1,146,100 shares were repurchased under the new plan, at an average price of $43.30 per share, for $49.6 million excluding excise tax and commissions.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information
(c) During the three months ended March 31, 2026, no director or Section 16 officer of the Company adopted terminated
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Item 6. Exhibits
31.1 | Rule 13a-14(a) Certification of the Chief Executive Officer | |||||||
31.2 | Rule 13a-14(a) Certification of the Chief Financial Officer | |||||||
32 | Rule 13a-14(b) Certification of the Chief Executive Officer and Chief Financial Officer | |||||||
10.1 | Employment Agreement, dated April 2, 2026, by and between S&T Bancorp, Inc. and Christopher J. McComish. Filed as Exhibit 10.1 to S&T Bancorp, Inc. Current Report on Form 8-K filed on April 6, 2026, and incorporated herein by reference.* | |||||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
| 101.SCH | XBRL Taxonomy Extension Schema | |||||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101) | |||||||
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S&T BANCORP, INC. AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| S&T Bancorp, Inc. (Registrant) | |||||
| May 7, 2026 | /s/ Mark Kochvar | ||||
| Mark Kochvar Senior Executive Vice President and Chief Financial Officer (Principal Financial Officer and Duly Authorized Signatory) | |||||
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FAQ
How did S&T Bancorp (STBA) perform financially in Q1 2026?
S&T Bancorp generated net income of $35.1 million in Q1 2026, up from $33.4 million a year earlier. Diluted EPS rose to $0.94, with returns of 1.44% on average assets and 9.77% on average shareholders’ equity.
What happened to S&T Bancorp (STBA) net interest margin in Q1 2026?
Net interest margin on a fully taxable-equivalent basis improved to 3.92% in Q1 2026 from 3.81% a year earlier. This reflected lower funding costs, reduced reliance on borrowings and brokered deposits, and slightly higher yields on the securities portfolio.
How strong is S&T Bancorp’s (STBA) loan and deposit base as of March 31, 2026?
At March 31, 2026, S&T Bancorp reported total portfolio loans of $7.96 billion and total deposits of $8.19 billion. Loan balances were concentrated in commercial real estate, business banking, and consumer real estate, supported by a primarily core deposit funding base.
What share repurchases did S&T Bancorp (STBA) complete under its 2026 plan?
Under a $100 million repurchase authorization approved January 21, 2026, S&T Bancorp bought back 1,146,100 shares in Q1 at an average price of $43.30, then another 354,200 shares after quarter-end. Remaining capacity was $34.7 million at May 5, 2026.
How did credit quality and provisions trend for S&T Bancorp (STBA) in Q1 2026?
The provision for credit losses was $1.3 million in Q1 2026 versus a negative $3.0 million a year earlier, reflecting higher net charge-offs and specific reserves. The allowance for credit losses totaled $93.3 million, covering a diversified $7.96 billion loan portfolio.
What were S&T Bancorp’s (STBA) key noninterest income and expense drivers in Q1 2026?
Noninterest income rose to $13.6 million, mainly because 2025’s $2.3 million securities loss did not recur. Noninterest expense increased to $56.7 million, driven primarily by higher salaries, employee benefits, and certain tax-related items, partly offset by lower other expense.