S&T Bancorp reports record third quarter 2026 earnings per share of $1.09

S&T Bancorp, Inc. (NASDAQ: STBA) reported record third quarter 2026 diluted earnings per share of $1.09, up 19.8% from $0.91 in the same period last year. The Indiana, Pennsylvania-based bank holding company posted net income of $38.6 million for the quarter, surpassing the $36.6 million recorded in the second quarter of 2026 and the $35.0 million from the third quarter of 2025.

Chief Executive Officer Chris McComish attributed the results to broad-based strength across the income statement, stating that the company delivered higher core profitability and record revenue. The increase in diluted earnings per share was driven by higher net income and share repurchases that reduced outstanding shares by 8.3% since September 30, 2025.

Key profitability metrics improved sequentially, with return on average assets rising to 1.55% from 1.49% in the second quarter of 2026. Return on average equity increased to 10.84% from 10.37%, and return on average tangible shareholders' equity climbed to 14.81% from 14.15%. Pre-provision net revenue to average assets expanded by 12 basis points to 2.01%, while the net interest margin on a fully taxable equivalent basis widened by 7 basis points to 4.06%.

Net interest income reached $93.1 million in the third quarter of 2026, an increase from $90.4 million in the prior quarter. This growth was primarily due to higher yields on interest-earning assets and one additional day in the quarter. The yield on average interest-earning assets rose by 9 basis points to 5.73%, driven by higher yields on both securities and loans. Average total loan balances increased by $61.2 million to $8.1 billion, while total interest-bearing liability costs rose by 3 basis points to 2.53%.

Asset quality indicators showed mixed trends, with net charge-offs rising to $2.1 million, or 0.10% of average loans, compared to $1.0 million, or 0.05%, in the second quarter of 2026. However, nonperforming assets decreased by $3.7 million to $36.5 million, representing 0.45% of total loans plus other real estate owned, down from $40.2 million, or 0.50%, at the end of June 2026. The allowance for credit losses remained unchanged at $93.3 million, or 1.16% of total portfolio loans.

Operating expenses were well controlled, resulting in an efficiency ratio of 53.23%, an improvement from 55.52% in the second quarter of 2026. Noninterest expense decreased by $1.1 million to $57.6 million, while noninterest income remained relatively stable at $14.7 million compared to $14.9 million in the prior quarter.

Total assets stood at $9.9 billion at September 30, 2026, unchanged from June 30, 2026. Total portfolio loans decreased by $4.4 million due to lower line utilization and originations, with commercial loans falling by $11.9 million and consumer loans rising by $7.5 million. Total deposits decreased modestly by $22.2 million, primarily due to seasonality, while total borrowings dropped by $60.0 million to $215.3 million.

The company maintained a strong regulatory capital position with all ratios above well-capitalized thresholds. No share repurchases occurred during the third quarter of 2026; however, S&T Bancorp has repurchased a total of 3,169,294 shares at an average price of $42.09 per share since initiating buybacks in the fourth quarter of 2025.