S&T Bancorp Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 23 July 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Return on assets, equity and tangible equity all improved: ROA rose 5 basis points to 1.49 percent, ROE increased 60 basis points to 10.37 percent, and ROTE improved 93 basis points to 14.15 percent. All three metrics exceeded prior quarter results and demonstrate improving profitability. Source
• Net charge-offs decreased to 0.05 percent of loans: Net charge-offs declined to $1.0 million or 0.05 percent of average loans in Q2 from $1.7 million or 0.09 percent in Q1. Favorable loss experience continues across the portfolio. Source
• Nonperforming assets declined $9.7 million: NPAs decreased to $40.2 million or 0.50 percent of loans plus OREO from $49.9 million or 0.63 percent in Q1. The 13 basis point improvement in the NPA ratio reflects positive credit migration. Source
• New $100 million buyback program authorized: The board authorized a new $100 million share repurchase program effective July 27, 2026, replacing the prior program and expiring August 31, 2027. During Q2, the company repurchased 1,074,924 shares at an average price of $44.24 for $47.6 million. Source

Guidance

What changed from last quarter

• New: Board authorized new $100 million share repurchase program to replace expiring program, indicating continued commitment to capital return. Source

Earnings and Return Metrics

• Return on assets, equity and tangible equity all improved: ROA rose 5 basis points to 1.49 percent, ROE increased 60 basis points to 10.37 percent, and ROTE improved 93 basis points to 14.15 percent. All three metrics exceeded prior quarter results and demonstrate improving profitability. Source

Net Interest Income and Margin Expansion

• Funding mix shifted to lower-cost customer deposits: Average brokered deposits decreased $146.2 million while average interest-bearing customer deposits increased $119.8 million. This shift toward customer funding helped reduce blended deposit costs, contributing to margin expansion. Source
• Net interest income increased to $90.4 million: Net interest income rose to $90.4 million from $88.4 million in Q1, an increase of $1.9 million. The increase reflects both margin expansion and stable asset volumes. Source

Loan Portfolio Growth Resumes

• Commercial and industrial lending drove expansion: Commercial and industrial loans increased $79.0 million and commercial construction increased $71.4 million. These gains outweighed a $46.2 million decline in commercial real estate loans. Source

Deposits Decline from Brokered Reduction

• Total deposits declined from planned brokered rundown: Total deposits decreased $99.1 million in Q2, primarily from a $100.4 million reduction in brokered deposits. Customer deposits remained stable in Q2 after strong first-quarter growth of $307.7 million or 8.0 percent annualized year-to-date. Source
• Core customer deposits demonstrated stability: Customer deposits were stable in Q2 after robust first-quarter expansion. Year-to-date customer deposit growth of $307.7 million at 8.0 percent annualized reflects the underlying strength of core customer relationships. Source

Asset Quality Continues Improving

• Net charge-offs decreased to 0.05 percent of loans: Net charge-offs declined to $1.0 million or 0.05 percent of average loans in Q2 from $1.7 million or 0.09 percent in Q1. Favorable loss experience continues across the portfolio. Source
• Nonperforming assets declined $9.7 million: NPAs decreased to $40.2 million or 0.50 percent of loans plus OREO from $49.9 million or 0.63 percent in Q1. The 13 basis point improvement in the NPA ratio reflects positive credit migration. Source
• Allowance for credit losses stable at 1.16 percent: The allowance for credit losses remained unchanged at $93.3 million or 1.16 percent of total portfolio loans. The provision for credit losses was $1.1 million in Q2, modestly below Q1's $1.3 million. Source

Capital Management and Shareholder Returns

• New $100 million buyback program authorized: The board authorized a new $100 million share repurchase program effective July 27, 2026, replacing the prior program and expiring August 31, 2027. During Q2, the company repurchased 1,074,924 shares at an average price of $44.24 for $47.6 million. Source
• Capital ratios remain above regulatory thresholds: All regulatory capital ratios, including CET1 of 13.64 percent, remain above federal bank regulatory well-capitalized thresholds. The company maintains adequate capital to support operations and shareholder returns. Source
• Three-quarter repurchases total 3.2 million shares: Over the past three quarters, the company repurchased 3,169,294 shares representing 8.3 percent of outstanding shares at an average price of $42.09 per share for a total of $133.4 million. Source

Noninterest Income and Expense

• Noninterest income increased $1.3 million to $14.9 million: Noninterest income rose to $14.9 million from $13.6 million, driven by a $0.4 million increase in debit and credit card fees and $0.3 million in other income gains, partially offset by $1.7 million loss from securities repositioning. Source
• Operating expenses increased $2.0 million to $58.7 million: Noninterest expense increased to $58.7 million from $56.7 million, primarily from $1.3 million higher salaries due to annual merit increases and medical costs plus $1.0 million in other expense variations. Source

Coming up, as management said on 23 July 2026

• New share buyback program effective July 27, 2026: The newly authorized $100 million share repurchase program becomes effective on July 27, 2026, replacing the prior program and expiring August 31, 2027. Source

Figures management reported

Earlier plans management reported on

• On track: The company maintains strong capital ratios including CET1 of 13.64 percent, demonstrating ongoing commitment to meet and exceed regulatory capital standards. Source
• On track: The company repurchased 1,074,924 shares in Q2 and authorized a new $100 million program, showing continued disciplined return of capital to shareholders. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.