S&T Bancorp (STBA) Q3 2026 Earnings Call: Record EPS and 4.06% NIM
Source Tradingkey
Key Takeaways
- S&T Bancorp reported record Q3 2026 earnings per share of $1.09, up nearly 20% year over year and almost 7% sequentially. Quarterly revenue reached a record of nearly $108 million.
- Net interest margin expanded 7 basis points from the prior quarter to 4.06%, supported by higher loan yields and an improved funding mix. Management expects NIM to remain above 4% into 2027 if interest rates continue to rise.
- Period-end loan balances were slightly lower, although average loans increased $61 million. Management expects flat to low-single-digit loan growth in Q4, reflecting pricing discipline, lower C&I originations and tighter CRE underwriting.
- Asset quality remained favorable. Nonperforming assets declined $3.7 million to just over $36 million, or 0.45% of loans plus OREO, while net charge-offs were $2.1 million, or 0.10% of total loans.
- The funding profile improved, with brokered deposits reduced by more than $180 million year to date and none remaining on the balance sheet. Demand deposits represented 28% of total deposits.
- Management is considering resuming share repurchases in Q4 under its existing $100 million authorization, subject to share price and market conditions.
Key Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| Earnings per share | $1.09 | Record; nearly 20% higher year over year and almost 7% higher sequentially |
| Revenue | Nearly $108 million | Record quarterly revenue |
| Return on assets | 1.55% | Strong quarterly return |
| Return on equity | Just under 11% | — |
| Return on average tangible shareholders’ equity | 14.81% | — |
| Pre-provision net revenue ratio | 2.01% | Up 12 basis points |
| Net interest margin | 4.06% | Up 7 basis points sequentially |
| Net interest income | Up $2.7 million | Approximately 3% sequential growth |
| Efficiency ratio, first nine months | 54.65% | Improved from 56.35% in the first nine months of 2025 |
| Allowance for credit losses | 1.16% of gross loans | Stable during the quarter |
| Net charge-offs | $2.1 million | 0.10% of total loans |
| Nonperforming assets | Just over $36 million | Down $3.7 million; 0.45% of loans plus OREO |
| Tangible book value per share | $29.28 | Up $0.10 despite a $0.66-per-share AOCI impact |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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