S&T Bancorp (STBA) investor relations material

Executive summary

• Achieved strong full-year 2025 results with $3.49 EPS, $134.2M net income, and 3.9% net interest margin, supported by disciplined execution and sustainable growth focus.

• Q4 2025 net income was $34M ($0.89 per share), with a 1.37% ROA and a 3.99% NIM, up six basis points sequentially.

• Loan growth exceeded 4% and deposit growth was just under 3% for the year, with well-controlled expenses.

• Announced a new $100M share repurchase authorization, with $36.2M repurchased in Q4, reflecting robust capital levels.

Financial highlights

• Q4 net interest income rose by $1.8M (1.93%) from Q3, driven by margin expansion; full year net interest income increased $15.3M (4.57%) to $350.1M.

• Non-interest income increased by $500K in Q4, with fee income expected at $13M–$14M per quarter in 2026.

• Expenses increased by $800K in Q4, mainly due to higher salaries, benefits, and marketing costs; efficiency ratio improved to 53.99% in Q4 and 55.74% for the year.

• Total loans grew by $329M (4.25%) year-over-year; deposits increased by $175.7M (2.26%).

Outlook and guidance

• Expecting mid-single digit loan growth in 2026, primarily from C&I and CRE segments, with stable NIM in the mid to high 3.9% range.

• Asset quality in 2026 anticipated to be similar to 2025, with continued focus on reducing NPLs and C&C loans.

• Non-interest expense to be managed at around 3% year-over-year growth, with a quarterly run rate of ~$58M.

• Management remains focused on growth, capital strength, and efficiency, with a new $100M share repurchase program authorized for 2026.