S&T Bancorp (NASDAQ:STBA) Releases Earnings Results, Beats Expectations By $0.10 EPS

S&T Bancorp (NASDAQ:STBA) issued its earnings results on Thursday. The financial services provider reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $0.99 by $0.10, Zacks reports. S&T Bancorp had a return on equity of 9.74% and a net margin of 24.51%. The firm had revenue of $107.79 million for the quarter, compared to analyst estimates of $106.72 million.

Here are the key takeaways from S&T Bancorp’s conference call:

• Record third-quarter performance: EPS rose nearly 20% year over year to $1.09, revenue reached nearly $108 million, and ROA was 1.55%.
• Net interest margin expanded 7 basis points to 4.06%, while management expects it to remain above 4% into 2027; expenses also declined, supporting improved operating leverage.
• Loan balances were essentially flat as S&T prioritized pricing and credit discipline over volume, and management now expects only flat to low-single-digit loan growth in the fourth quarter.
• Asset quality remained favorable, with net charge-offs at 10 basis points and non-performing assets declining to 0.45% of loans plus OREO, although criticized assets increased 7%.
• The bank has no brokered deposits, strong regulatory capital, and may resume share repurchases in the fourth quarter; crossing the $10 billion asset threshold is now unlikely before year-end, delaying the expected Durbin impact until at least mid-2028.

S&T Bancorp Trading Up 3.8%

Shares of S&T Bancorp stock opened at $50.73 on Friday. The firm has a 50-day simple moving average of $49.56 and a two-hundred day simple moving average of $47.96. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.99 and a current ratio of 0.99. S&T Bancorp has a fifty-two week low of $35.02 and a fifty-two week high of $53.50. The company has a market cap of $1.79 billion, a P/E ratio of 12.99 and a beta of 0.85.

S&T Bancorp Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Tuesday, August 18th were issued a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend was Tuesday, August 18th. S&T Bancorp’s payout ratio is 39.36%.

Insider Activity at S&T Bancorp

In related news, Director William Hieb sold 11,979 shares of S&T Bancorp stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $51.34, for a total value of $615,001.86. Following the completion of the transaction, the director owned 17,344 shares in the company, valued at $890,440.96. The trade was a 40.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.23% of the stock is owned by company insiders.

S&T Bancorp announced that its board has approved a stock buyback plan on Thursday, July 23rd that permits the company to buy back $100.00 million in outstanding shares. This buyback authorization permits the financial services provider to buy up to 5.6% of its shares through open market purchases. Stock buyback plans are generally a sign that the company’s leadership believes its shares are undervalued.

S&T Bancorp News Summary

Here are the key news stories impacting S&T Bancorp this week:

• Positive Sentiment: Q3 earnings beat expectations: S&T Bancorp reported earnings of $1.09 per share, exceeding the $0.99 analyst consensus and rising from $0.91 a year earlier. Net income reached a record $38.6 million, compared with $36.6 million in the prior quarter and $35.0 million a year ago. S&T Bancorp Announces Third Quarter 2026 Results
• Positive Sentiment: Revenue also topped estimates: Third-quarter revenue was $107.8 million versus the FactSet estimate of $106.7 million, reinforcing the positive earnings surprise. S&T Bancorp Q3 Revenue Earnings Flash
• Positive Sentiment: 2027 outlook supports continued margins: Management expects net interest margin to remain above 4% into 2027 while targeting noninterest expense growth of approximately 3%. That combination could support earnings durability and operating leverage if revenue growth continues. S&T Bancorp Net Interest Margin Outlook
• Positive Sentiment: Profitability remained solid: S&T Bancorp reported a 24.51% net margin and 9.74% return on equity, adding to the favorable reaction to the quarterly report. S&T Bancorp Q3 Income Rises

Wall Street Analyst Weigh In

STBA has been the subject of several research reports. Piper Sandler lifted their price objective on shares of S&T Bancorp from $51.00 to $53.00 and gave the company a “neutral” rating in a research note on Monday, July 27th. Weiss Ratings reiterated a “buy (b)” rating on shares of S&T Bancorp in a research note on Thursday. Raymond James Financial began coverage on shares of S&T Bancorp in a report on Thursday, October 1st. They set a “market perform” rating for the company. Keefe, Bruyette & Woods boosted their target price on shares of S&T Bancorp from $49.00 to $52.00 and gave the company a “market perform” rating in a research report on Monday, July 27th. Finally, Zacks Research downgraded S&T Bancorp from a “strong-buy” rating to a “hold” rating in a research report on Friday, September 25th. Two analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, S&T Bancorp presently has an average rating of “Hold” and a consensus price target of $51.60.

About S&T Bancorp

S&T Bancorp, Inc is the financial holding company for S&T Bank, a community bank headquartered in Indiana, Pennsylvania. Founded in 1902, S&T Bank serves consumers, businesses, and institutions through a network of banking offices and digital channels.

The bank provides a range of financial products and services, including checking and savings accounts, certificates of deposit, residential mortgages, consumer loans, commercial real estate financing, and business loans. It also offers treasury and cash-management services designed to support business customers.

S&T Bank serves communities primarily across western Pennsylvania and eastern Ohio.