S&T BANCORP INC
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
STBA$50.78-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0000719220-26-000050
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000719220-26-000098
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 91 previous paragraphs and 96 current paragraphs.
53 unchanged; 29 reworded; 10 added; 9 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 18 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Net interest income increased $3.8 million, or 4.4 percent, and $8.9 million, or 5.3 percent, for the three and six months ended June 30, 2026 compared to the same periods in 2025. Net interest margin, or NIM, on an FTE basis (non-GAAP)
Current report
The provision for credit losses decreased $0.9 million to $1.1 million for the three months ended June 30, 2026 compared to $2.0 million for the same period in 2025. The decrease was primarily related to a lower provision for unfunded loan commitments due to lower loss rates. The provision for credit losses increased $3.5 million to $2.4 million for the six months ended June 30, 2026 compared to negative $1.1 million for the same periods in 2025. The increase was related to higher net loan charge-offs and specific reserves for loans individually evaluated compared to the same period in 2025, which was partially offset by decreases in the reserve for unfunded loan commitments due to lower loss rates.
Current report
Noninterest income increased $1.4 million and $4.6 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The most significant increase for the six months ended June 30, 2026 is due to a $0.2 million net gain on the sale of securities compared to a $2.3 million loss on sale of securities that occurred in 2025.
Current report
Noninterest expense increased $0.6 million and $2.2 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The increase for the three months ended June 30, 2026 was primarily due to normal fluctuations across several expense categories and timing-related items. The increase for the six months ended June 30, 2026 was primarily due to an increase in salaries and employee benefits driven by annual merit increases and the acquisition of new talent.
Current report
June 30, 2026. Average loans increased $189.3 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase in average loans was offset by a decrease in the average yield on loans of 14 basis points for the six months ended June 30, 2026 compared to the same period in 2025 due to lower interest rates. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 12 and 11 basis points for the three and six months ended June 30, 2026 compared to the same periods in 2025.
Current report
The provision for credit losses decreased $0.9 million to $1.1 million for the three months ended June 30, 2026 compared to $2.0 million for the same period in 2025. The decrease was primarily related to a lower provision for unfunded loan commitments due to a decline in loss rates. The provision for credit losses increased $3.5 million to $2.4 million for the six months ended June 30, 2026 compared to a negative $1.1 million for the same period in 2025. The increase was related to higher net loan charge-offs and specific reserves for loans individually evaluated compared to the same periods in 2025, which was partially offset by a decrease in the reserve for unfunded loan commitments due to lower loss rates.
Current report
Noninterest income increased $1.4 million for the three months ended June 30, 2026 and increased $4.6 million for the six months ended June 30, 2026 compared to the same periods in 2025. Investments services and trust increased $0.5 million for the three months ended June 30, 2026 and $0.8 million for the six months ended June 30, 2026 compared to the same period in 2025 due to an increase in financial services fees. The most significant increase for the six months ended June 30, 2026 is due to a $0.2 million net gain on the sale of securities compared to a $2.3 million loss on sale of securities that occurred in 2025. The $0.2 million represents a gain of $1.9 million related to Visa Class B-2 common stock conversion which was offset by a $1.7 million loss related to the repositioning of securities into longer duration, higher yielding securities. Other noninterest income increased $0.4 million for the three months ended June 30, 2026 and $0.7 million for the six months ended June 30, 2026 primarily due to increases in partnership income and unrealized gains on equity securities.
Current report
Noninterest expense increased $0.6 million and $2.2 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The increase of $0.6 million for the three months ended June 30, 2026 was primarily due to normal fluctuations across several expense categories and timing-related items. The increase of $2.2 million for the six months ended June 30, 2026 was primarily due to an increase in salaries and employee benefits of $1.3 million driven by annual merit increases and the acquisition of new talent.
Current report
Total portfolio loans were $8.1 billion at both June 30, 2026 and December 31, 2025. Loan balances declined during the three months ended March 31, 2026 due to increased competition and higher CRE payoffs, but increased during the three months ended June 30, 2026 due to growth in the commercial loan portfolio. This resulted in a relatively unchanged loan balance compared to December 31, 2025.
Current report
At June 30, 2026, 22 percent of our total loans were adjustable rate, 38 percent were floating rate and 40 percent were fixed rate compared to 23 percent adjustable rate loans, 37 percent floating rate loans and 40 percent fixed rate loans at December 31, 2025.
Removed paragraphs (9)
Previous report
The provision for credit losses increased $4.3 million to $1.3 million for the three months ended March 31, 2026 compared to negative $3.0 million for the same period in 2025. The increase was primarily due to higher net loan charge-offs and an increase in specific reserve for loans individually evaluated compared to the same period in 2025.
Previous report
Noninterest income increased $3.2 million to $13.6 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was mainly related to $2.3 million in realized losses from the repositioning of securities into longer duration, higher-yielding securities which occurred in 2025 and is not present in 2026. Noninterest expense increased $1.6 million to $56.7 million for the three months ended March 31, 2026 compared to $55.1 million in the same period in 2025. The increase in noninterest expense primarily related to higher salaries and employee benefits of $1.5 million related to increased salary, medical and incentive costs.
Previous report
(3) Nonaccruing loans are included in the daily average loan amounts outstanding.
Previous report
(3) Nonaccruing loans are included in the daily average loan amounts outstanding.
Previous report
The provision for credit losses increased $4.3 million to $1.3 million for the three months ended March 31, 2026 compared to negative $3.0 million for the same period in 2025. The increase was primarily due to higher net loan charge-offs and an increase in specific reserve for loans individually evaluated.
Previous report
Noninterest income increased $3.2 million to $13.6 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase was mainly related to $2.3 million in realized losses from the repositioning of securities into longer duration, higher-yielding securities which occurred in 2025 and is not present in 2026.
Previous report
Noninterest expense increased $1.6 million to $56.7 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase in noninterest expense mainly related to higher salaries and employee benefits of $1.5 million primarily due to increased salary, medical and incentive costs. Other taxes increased $0.6 million primarily due to the timing of contributions to the Educational Improvement Tax Credit Program and other noninterest expense decreased $0.8 million primarily due to the same contribution timing. These contributions are reported in other expense and generate tax credits that reduce shares tax expense, which is included in other taxes.
Previous report
Total portfolio loans were $8.0 billion at March 31, 2026 compared to $8.1 billion at December 31, 2025. The decline in commercial loans related to reduced utilization rates and higher commercial real estate loan payoffs. Additionally, we experienced increased competition in pricing and loan structure which contributed to lower-than-anticipated new fundings for the three months ended March 31, 2026.
Previous report
The ACL increased $0.1 million to $93.3 million, or 1.17 percent of total portfolio loans, at March 31, 2026 compared to $93.2 million, or 1.15 percent of total portfolio loans, at December 31, 2025. The increase in the ACL and ACL as a percentage of total portfolio loans was primarily due to an increase of $1.0 million in specific reserves for loans individually evaluated and higher special mention loans which was partially offset by lower substandard and total loan balances.
Reworded paragraphs (29)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, represents an overview of our consolidated results of operations and financial condition and highlights material changes in our financial condition and results of operations for the three months ended March 31, 2026 and 2025. Our MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and Notes. The results of operations reported in the accompanying Condensed Consolidated Financial Statements are not necessarily indicative of results to be expected in future periods.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, represents an overview of our consolidated results of operations and financial condition and highlights material changes in our financial condition and results of operations for the three and six months ended June 30, 2026 and 2025. Our MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and Notes. The results of operations reported in the accompanying Condensed Consolidated Financial Statements are not necessarily indicative of results to be expected in future periods.
Previous wording
We recognized net income of $35.1 million, or $0.94 per diluted share, for the three months ended March 31, 2026 compared to net income of $33.4 million, or $0.87 per diluted share, for the same period in 2025. This represents a 5.0 percent increase in net income and an 8.0 percent increase in diluted earnings per share for the three months ended March 31, 2026 compared to the same period in 2025. During the first quarter of 2026, 1,146,100 shares were repurchased at an average price of $43.30 per share for $49.6 million excluding excise tax and commissions. Total share repurchases for both the fourth quarter of 2025 and the first quarter of 2026 were 2,094,370 shares at an average price of $40.99 per share totaling $85.8 million excluding excise tax and commissions. The remaining capacity under the existing share repurchase program was $50.4 million at March 31, 2026.
Current wording
We recognized net income of $36.6 million, or $1.02 per diluted share, for the three months ended June 30, 2026 compared to net income of $31.9 million, or $0.83 per diluted share, for the same period in 2025. This represents a 14.9 percent increase in net income and a 22.9 percent increase in diluted earnings per share for the three months ended June 30, 2026 compared to the same period in 2025. We recognized net income of $71.7 million, or $1.96 per diluted share, for the six months ended June 30, 2026 compared to net income of $65.3 million, or $1.69 per diluted share, for the same period in 2025. This represents a 9.8 percent increase in net income and a 16.0 percent increase in diluted earnings per share for the six months ended June 30, 2026 compared to the same period in 2025.
Previous wording
Net interest income on an FTE basis (non-GAAP) increased $5.1 million, or 6.06 percent, for the three months ended March 31, 2026 compared to the same period in 2025. The net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points to 3.92 percent for the three months ended March 31, 2026 compared to 3.81 percent in the same period in 2025. The increases in net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest-bearing liabilities.
Current wording
increased 11 basis points for both the three and six months ended June 30, 2026 compared to the same periods in 2025. The increases in both net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest bearing liabilities and an improvement in our overall funding mix.
Previous wording
The provision for income taxes increased $0.7 million to $9.0 million for the three months ended March 31, 2026 compared to $8.3 million for the same period in 2025. Our effective tax rate was 20.4 percent for the three months ended March 31, 2026 compared to 19.9 percent for the three months ended March 31, 2025. The increase in our effective tax rate for the three month period ended March 31, 2026 was primarily due to an increase in pretax income and state income tax expense compared to the same period in 2025.
Current wording
Our effective tax rate was 19.4 percent and 19.9 percent for the three and six months ended June 30, 2026 compared to 20.2 percent and 20.1 percent for the three and six months ended June 30, 2025. The decrease in the effective tax rate for the three and six months ended June 30, 2026 was primarily due to an increase in tax credits and losses on low-income housing and historic partnership investments compared to the same periods in 2025.
Previous wording
Three months ended March 31, 2026 compared to Three months ended March 31, 2025
Current wording
Three and six months ended June 30, 2026 compared to Three and six months ended June 30, 2025
Previous wording
Net interest income increased $5.1 million, or 6.1 percent to $88.4 million for the three months ended March 31, 2026 compared to $83.3 million for the same period in 2025. The net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points to 3.92 percent for the three months ended March 31, 2026 compared to 3.81 percent for the same period in 2025. The increases in net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest-bearing liabilities and an improvement in our funding mix due to strong customer growth which allowed for reduced levels of brokered deposits and borrowings.
Current wording
Net interest income on an FTE basis (non-GAAP) increased $3.8 million, or 4.4 percent, and $8.9 million, or 5.2 percent, for the three and six months ended June 30, 2026 compared to the same periods in 2025. The net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points for both the three and six months ended June 30, 2026 compared to the same periods in 2025. These improvements in both net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest-bearing liabilities and an improvement in our overall funding mix. Customer deposit growth in 2025 and 2026 has reduced our levels of wholesale borrowings and brokered deposits.
Previous wording
Interest income on an FTE basis (non-GAAP) increased $1.5 million for the three months ended March 31, 2026 compared to the same period in 2025. The increase in interest income on an FTE basis (non-GAAP) was primarily driven by a $245.7 million increase in total portfolio loans that more than offset the impact of declining loan yields. The average yield on loans decreased 13 basis points compared to the same period in 2025 due to lower interest rates. Interest income on an FTE basis (non-GAAP) also improved due to an increase in securities yield of 19 basis points to 3.78 percent compared to 3.59 percent in the same period in 2025. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 10 basis points for the three months ended March 31, 2026 compared to the same period in 2025.
Current wording
Interest income on an FTE basis (non-GAAP) decreased $0.9 million for the three months ended June 30, 2026 and increased $0.6 million for the six months ended June 30, 2026 compared to the same periods in 2025. The decrease in interest income on an FTE basis (non-GAAP) for the three months ended June 30, 2026 was primarily driven by lower interest rates. The increase in interest income on an FTE basis (non-GAAP) for the six months ended June 30, 2026 was primarily driven by higher yields in the securities portfolio. The average yield on securities increased 12 basis points for the six months ended
Previous wording
Interest expense decreased $3.6 million for the three months ended March 31, 2026 compared to the same period in 2025. The decrease in interest expense was primarily due to a decline in interest rates. Average interest-bearing deposits increased $250.4 million for the three months ended March 31, 2026 compared to the same period in 2025. Average borrowings decreased $43.6 million for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to an increase in deposits. Overall, the cost of interest-bearing liabilities decreased 33 basis points for the three months ended March 31, 2026 compared to the same period in 2025.
Current wording
Interest expense decreased $4.7 million and $8.3 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The decrease in interest expense was primarily due to decreased interest rates and lower levels of wholesale funding. Average interest-bearing deposits increased $131.8 million and $190.8 million for the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to increases in certificates of deposit balances as well as increases in money market. Average borrowings decreased $54.5 million and $49.1 million for the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to an increase in customer deposits. Overall, the cost of interest-bearing liabilities decreased 34 and 33 basis points for the three and six months ended June 30, 2026 compared to the same periods in 2025.
Previous wording
The following table sets forth a summary of the changes in interest earned and interest paid resulting from changes in volume and changes in rates for the periods presented:
Current wording
The following table sets forth for the periods presented a summary of the changes in interest earned and interest paid resulting from changes in volume and changes in rates:
Previous wording
The provision for credit losses includes provisions for losses on loans and on unfunded loan commitments. The provision for credit losses fluctuates based on changes in loan balances, loan risk ratings, net loan charge-offs and recoveries, the macro environment and our Current Expected Credit Losses, or CECL, forecast.
Current wording
The provision for credit losses includes a provision for losses on loans and on unfunded commitments. The provision for credit losses fluctuates based on changes in loan balances, risk ratings, net loan charge-offs/recoveries, the macro environment and our Current Expected Credit Loss, or CECL, forecast.
Previous wording
Net loan charge-offs were $1.7 million for the three months ended March 31, 2026 compared to net loan charge-offs of $0.0 million for the same period in 2025. Refer to the "Allowance for Credit Losses" section of this MD&A for further details.
Current wording
Net loan charge-offs were $1.0 million and $2.7 million for the three and six months ended June 30, 2026 compared to net loan charge-offs of $1.2 million and $1.1 million for the same periods in 2025. Refer to the Allowance for Credit Losses section of this MD&A for further details.
Previous wording
The provision for income taxes increased $0.7 million to $9.0 million for the three months ended March 31, 2026 compared to $8.3 million for the same period in 2025. Our effective tax rate was 20.4 percent for the three months ended March 31, 2026 compared to 19.9 percent for the for the three months ended March 31, 2025. The increase in our effective tax rate for the three months ended March 31, 2026 was primarily due to an increase in pretax income and state income tax expense compared to the same period in 2025.
Current wording
The provision for income taxes increased $0.7 million to $8.8 million for the three months ended June 30, 2026 and increased $1.4 million to $17.8 million for the six months ended June 30, 2026 compared to $8.1 million and $16.4 million for the same periods in 2025. The increase in our provision for income taxes was due to higher pretax income for the three and six months ended June 30, 2026 compared to the same periods in 2025. Our effective tax rate was 19.4 percent for the three months ended June 30, 2026 and 19.9 percent for the six months ended June 30, 2026 compared to 20.2 percent and 20.1 percent for the same period in 2025. The decrease in our effective tax rate for the three and six months ended June 30, 2026 was primarily due to an increase in tax credits and losses on low-income housing and historic partnership investments compared to the same periods in 2025.
Previous wording
Total assets were $9.9 billion at both March 31, 2026 and December 31, 2025. Cash and due from banks increased $175.6 million related to a significant increase in deposits and a decline in loans compared to December 31, 2025. Total portfolio loans decreased $112.6 million, or 1.4 percent, to $8.0 billion at March 31, 2026 compared to December 31, 2025. The commercial loan portfolio decreased $79.0 million and the consumer loan portfolio decreased $33.6 million compared to December 31, 2025. The decline in loans related to lower fundings, reduced utilization and higher commercial real estate loan payoffs.
Current wording
Total assets were $9.9 billion at both June 30, 2026 and December 31, 2025. Cash and due from banks increased $54.4 million related to an increase in deposits and a modest decline in loans compared to December 31, 2025. Total portfolio loans decreased $13.6 million, or 0.2 percent, to $8.1 billion at June 30, 2026 compared to December 31, 2025. The commercial loan portfolio increased $25.2 million compared to December 31, 2025 due to an increase in commercial construction and commercial and industrial loans. The consumer loan portfolio decreased $38.8 million compared to December 31, 2025 due to lower mortgage originations, increased sales of newly originated mortgage loans and higher payoffs within other consumer loans.
Previous wording
Total deposits increased $226.4 million, or 2.8 percent, to $8.2 billion at March 31, 2026 compared to $8.0 billion at December 31, 2025. Customer deposits increased $306.5 million, or 3.9 percent, to $8.1 billion at March 31, 2026 compared to $7.8 billion at December 31, 2025 driven by broad-based growth across all lines of business and nearly all deposit product categories. The increase in customer deposits allowed for a reduction in brokered deposits which decreased $80.1 million to $100.3 million at March 31, 2026 compared to $180.4 million at December 31, 2025.
Current wording
Total deposits increased $127.3 million, or 1.6 percent, to $8.1 billion at June 30, 2026 compared to $8.0 billion at December 31, 2025. Customer deposits increased $307.7 million, or 4.0 percent, to $8.1 billion at June 30, 2026 compared to $7.8 billion at December 31, 2025 driven by increases in core relationships and growth across nearly all deposit product categories. Growth in customer deposits enabled a reduction in money market brokered deposits which decreased $180.4 million compared to December 31, 2025.
Previous wording
Total borrowings decreased $115.0 million to $150.3 million at March 31, 2026 compared to $265.3 million at December 31, 2025 due to strong customer deposit growth.
Current wording
Total borrowings increased $10.0 million to $275.3 million at June 30, 2026 compared to $265.3 million at December 31, 2025.
Previous wording
Total shareholders’ equity decreased by $33.2 million to $1.4 billion at March 31, 2026 compared to December 31, 2025. The decrease was primarily due to repurchases of S&T common stock of $50.2 million which includes excise tax and commissions of $0.6 million, other comprehensive loss of $5.8 million and dividends of $13.4 million offset by net income of $35.1 million. During the first quarter of 2026, 1,146,100 common shares were repurchased at an average price of $43.30 per share.
Current wording
Total shareholders’ equity decreased by $60.1 million to $1.4 billion at June 30, 2026 compared to $1.5 billion at December 31, 2025. The decrease was primarily due to repurchases of S&T common stock of $98.3 million during the six months ended June 30, 2026, which includes excise tax and commissions of $1.1 million, other comprehensive loss of $7.6 million and dividends of $26.7 million offset by net income of $71.7 million. During the six months ended June 30, 2026, 2,221,024 common shares were repurchased at an average price of $43.75 per share.
Previous wording
Securities increased $21.9 million to $1.0 billion at March 31, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily due to purchases offset by an increase in unrealized losses as a result of higher interest rates. The securities portfolio was in a net unrealized loss position of $42.7 million at March 31, 2026 compared to a net unrealized loss position of $34.9 million at December 31, 2025.
Current wording
The securities portfolio increased $25.6 million to $1.0 billion at June 30, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily related to net purchases offset by an increase in unrealized losses of $10.9 million at June 30, 2026 compared to December 31, 2025 as a result of higher interest rates.
Previous wording
The securities portfolio increased $21.9 million to $1.0 billion at March 31, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily related to purchases offset by an increase in unrealized losses of $7.8 million at March 31, 2026 compared to December 31, 2025 as a result of higher interest rates. Our debt securities portfolio was in a net unrealized loss position of $42.7 million at March 31, 2026 compared to a net unrealized loss position of $34.9 million at December 31, 2025. At March 31, 2026, our debt securities portfolio had gross unrealized losses of $46.3 million offset by $3.6 million of gross unrealized gains compared to gross unrealized losses of $42.4 million offset by gross unrealized gains of $7.5 million at December 31, 2025.
Current wording
Our debt securities portfolio was in a net unrealized loss position of $45.8 million at June 30, 2026 compared to a net unrealized loss position of $34.9 million at December 31, 2025. At June 30, 2026, our debt securities portfolio had gross unrealized losses of $47.1 million offset by $1.3 million of gross unrealized gains compared to gross unrealized losses of $42.4 million offset by gross unrealized gains of $7.5 million at December 31, 2025. We recognized $1.7 million of realized losses due to the repositioning of $34.8 million of our securities portfolio into longer duration, higher-yielding securities during the three months ended June 30, 2026.
Previous wording
Commercial loans, including CRE, C&I and commercial construction comprised 68.4 percent of total portfolio loans at March 31, 2026 compared to 68.5 percent at December 31, 2025. The commercial loan portfolio decreased $79.0 million at March 31, 2026 compared to December 31, 2025 due to decreases of $94.7 million in CRE and $8.3 million in C&I offset by an increase of $23.9 million in commercial construction.
Current wording
Commercial loans, including CRE, C&I and commercial construction comprised 68.9 percent of total portfolio loans at June 30, 2026 compared to 68.5 percent at December 31, 2025. The commercial loan portfolio increased $25.2 million at June 30, 2026 compared to December 31, 2025 due to increases of $95.4 million in commercial construction and $70.7 million in C&I offset by a decrease of $140.9 million in CRE.
Previous wording
Consumer loans represent 31.6 percent of our total portfolio loans at March 31, 2026 compared to 31.5 percent at December 31, 2025. The consumer loan portfolio decreased $33.6 million at March 31, 2026 compared to December 31, 2025 due to decreases of $26.2 million in consumer real estate and $7.3 million in other consumer loans. At both March 31, 2026 and December 31, 2025, 23 percent of our total loans were adjustable rate, 37 percent were floating rate and 40 percent were fixed rate.
Current wording
Consumer loans represent 31.1 percent of our total portfolio loans at June 30, 2026 compared to 31.5 percent at December 31, 2025. The consumer loan portfolio decreased $38.8 million at June 30, 2026 compared to December 31, 2025 due to a decrease of $27.6 million in consumer real estate related to lower mortgage originations and increased sales of newly originated mortgage loans and a decrease of $11.2 million in other consumer loans related to higher payoffs.
Previous wording
Substandard loans decreased $10.5 million to $114.6 million at March 31, 2026 compared to $125.1 million at December 31, 2025. The decrease in the amount of substandard loans was primarily due to loan paydowns. Special mention loans increased $57.8 million to $126.8 million at March 31, 2026 compared to $69.0 million at December 31, 2025. The increase in special mention loans was related to downgrades of three C&I relationships and one CRE relationship.
Current wording
The ACL was relatively unchanged at $93.3 million, or 1.16 percent of total portfolio loans, at June 30, 2026 compared to $93.2 million, or 1.15 percent of total portfolio loans, at December 31, 2025. Special mention loans increased $73.9 million to $142.9 million at June 30, 2026 compared to $69.0 million at December 31, 2025. The increase in special mention loans was primarily related to downgrades of four C&I relationships and three CRE relationships. The impact to the ACL resulting from higher special mention loans was mostly offset by a decrease in substandard loans. Substandard loans decreased $28.1 million to $97.0 million at June 30, 2026 compared to $125.1 million at December 31, 2025. The decrease in the amount of substandard loans was primarily due to loan paydowns.
Previous wording
Our policy is to place loans in all categories in nonaccrual status when collection of interest or principal is doubtful, or generally when interest or principal payments are 90 days or more past the contractual due date. Nonaccrual loans decreased $5.7 million to $49.9 million at March 31, 2026 compared to $55.6 million at December 31, 2025. The decrease in nonaccrual loans was primarily due to paydowns in the C&I portfolio.
Current wording
Our policy is to place loans in all categories in nonaccrual status when collection of interest or principal is doubtful, or generally when interest or principal payments are 90 days or more past the contractual due date. Nonaccrual loans decreased $15.4 million to $40.2 million at June 30, 2026 compared to $55.6 million at December 31, 2025. The decrease in nonaccrual loans was primarily due to paydowns in our commercial portfolio.
Previous wording
Total deposits increased $226.4 million, or 2.8 percent, at March 31, 2026 compared to December 31, 2025 as a result of our continued focus on growing our deposit franchise. Customer deposits increased $306.5 million, or 3.9 percent, compared to December 31, 2025, driven by broad-based growth across all lines of business and nearly all product categories. While most of this increase reflects growth in our customer deposit base, a portion relates to seasonality and temporary inflows that are not expected to remain. Growth in customer deposits also enabled a reduction in brokered deposits, which decreased $80.1 million from December 31, 2025. Brokered deposits are an additional source of funds utilized by ALCO as a way to diversify funding sources, as well as manage our funding costs and structure.
Current wording
Total deposits increased $127.3 million, or 1.6 percent, at June 30, 2026 compared to December 31, 2025. Customer deposits increased $307.7 million, or 4.0 percent, compared to December 31, 2025, driven by increases in core relationships and growth across nearly all deposit product categories. Demand deposits increased $95.9 million, or 4.4 percent, compared to December 31, 2025, representing 28 percent of total deposits at June 30, 2026. Growth in customer deposits enabled a reduction in money market brokered deposits, which decreased $180.4 million from December 31, 2025. Brokered deposits are an additional source of funds utilized by ALCO as a way to diversify funding sources, as well as manage our funding costs and structure.
Previous wording
As a member of the IntraFi network, we are able to offer our customers insurance coverage on interest-bearing demand, money market and certificates of deposit balances in excess of the FDIC insurance limits. IntraFi balances were $330.4 million at March 31, 2026 compared to $317.3 million at December 31, 2025.
Current wording
As a member of the IntraFi network, we are able to offer our customers insurance coverage on interest-bearing demand, money market and certificates of deposit balances in excess of the FDIC insurance limits. IntraFi balances were $334.1 million at June 30, 2026 compared to $317.3 million at December 31, 2025.
Previous wording
We had total uninsured deposits of $2.9 billion, or 35.8 percent of our total deposit base, at March 31, 2026 compared to $2.7 billion, or 33.7 percent of our total deposit base, at December 31, 2025.
Current wording
We had total uninsured deposits of $2.9 billion, or 36.0 percent of our total deposit base, at June 30, 2026 compared to $2.7 billion, or 33.7 percent of our total deposit base, at December 31, 2025.
Previous wording
Borrowings are an additional source of funding for us. Short-term borrowings are for terms under or equal to one year and are comprised of FHLB Advances. Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances and finance leases. Total borrowings decreased $115.0 to $150.3 million at March 31, 2026 compared to $265.3 million at December 31, 2025 due to strong customer deposit growth and lower loan balances.
Current wording
Borrowings are an additional source of funding for us. Short-term borrowings are for terms under or equal to one year and are comprised of Federal Home Loan Bank, or FHLB, Advances. Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances and finance leases. Total borrowings increased $10.0 million to $275.3 million at June 30, 2026 compared to $265.3 million at December 31, 2025.
Previous wording
Information pertaining to short-term borrowings is summarized in the table below for the three months ended March 31, 2026 and for the twelve months ended December 31, 2025:
Current wording
Information pertaining to short-term borrowings is summarized in the table below for the six months ended June 30, 2026 and for the twelve months ended December 31, 2025:
Previous wording
Information for long-term borrowings and junior subordinated debt securities is summarized in the tables below for the three months ended March 31, 2026 and for the twelve months ended December 31, 2025:
Current wording
Information for long-term borrowings and junior subordinated debt securities is summarized in the tables below for the six months ended June 30, 2026 and for the twelve months ended December 31, 2025:
Previous wording
An important component of our ability to effectively respond to potential liquidity stress events is maintaining a cushion of highly liquid assets. Highly liquid assets are those that can be converted to cash quickly to meet financial obligations. ALCO policy guidelines define a ratio of highly liquid assets to total assets by graduated risk tolerance levels of minimal, moderate and high. At March 31, 2026, S&T Bank had $1.0 billion in highly liquid assets which consisted primarily of $276.0 million in interest-bearing deposits with banks and $763.0 million in unpledged securities. This resulted in a highly liquid assets to total assets ratio of 10.5 percent at March 31, 2026.
Current wording
An important component of our ability to effectively respond to potential liquidity stress events is maintaining a cushion of highly liquid assets. Highly liquid assets are those that can be converted to cash quickly to meet financial obligations. ALCO policy guidelines define a ratio of highly liquid assets to total assets by graduated risk tolerance levels of minimal, moderate and high. At June 30, 2026, S&T Bank had $916.2 million in highly liquid assets which consisted primarily of $146.0 million in interest-bearing deposits with banks and $765.5 million in unpledged securities. This resulted in a highly liquid assets to total assets ratio of 9.2 percent at June 30, 2026.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
During the three months ended June 30, 2026, 1,074,924 shares were repurchased at an average price of $44.24 per share for $47.6 million excluding excise tax and commissions. During the six months ended June 30, 2026, 2,221,024 common shares were repurchased at an average price of $43.75 per share for $97.2 million excluding excise tax and commissions.
Current report — wording carried from elsewhere
(1) Tax-exempt interest income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.
Current report — wording carried from elsewhere
(2)Taxable investment income is adjusted for the dividend-received deduction for equity securities.
Current report — wording carried from elsewhere
Securities increased $25.6 million to $1.0 billion at June 30, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily due to purchases offset by an increase in unrealized losses as a result of higher interest rates.