S&T Bancorp (STBA) investor relations material

Executive summary

• Net income for Q2 2026 was $36.6 million ($1.02 per diluted share), up 8.5% sequentially and 22.9% year-over-year.

• Return on assets (ROA) was 1.49%, return on equity (ROE) 10.37%, and return on tangible common equity (ROTCE/ROTE) 14.15%.

• Solid loan growth of $99 million (5% annualized), while deposits declined by $99.1 million (4.9% annualized).

• Asset quality remained strong with low net charge-offs and a decrease in nonperforming assets.

• Recognized for customer satisfaction, named to Forbes America's Best in State Banks 2026 list and celebrated 124th anniversary.

Financial highlights

• Net interest income rose to $90.4 million from $88.4 million in Q1 and $86.6 million a year ago.

• Net interest margin (NIM, FTE) expanded to 3.99%, supported by a decline in cost of funds.

• Efficiency ratio improved to 55.52% (FTE, non-GAAP) in Q2 2026.

• Noninterest income increased, driven by higher customer activity, card fees, and a $1.9 million gain on Visa shares offset by a $1.7 million bond loss.

• Noninterest expense rose to $58.7 million, mainly due to higher salaries, benefits, and medical costs.

Outlook and guidance

• Expecting mid-single-digit annualized loan growth for the remainder of 2026.

• Deposit growth expected to self-fund loan growth based on current pipeline activity.

• Net interest margin anticipated to remain stable in the high 3.90s for several quarters.

• Noninterest expense targeted at a 3% year-over-year increase, with a quarterly run rate of ~$58 million.

• Board authorized a new $100 million share repurchase program effective July 2026.