S&T Bancorp Sees Record Deposit Growth, Strong Earnings in Q1 2026
The first quarter of 2026 was a standout period for S&T Bancorp, with the bank reporting a $35 million net income, equivalent to $0.94 per share, up almost 6% from Q4 2025 and 8% from the same period last year. The strong earnings were underpinned by solid return metrics, including a 1.44% Return on Assets (ROA), which was up 7 basis points, and a Return on Tangible Common Equity (ROTCE) of 13.22%, almost 1% higher than Q4 2025.
One of the highlights of the quarter was the bank's deposit growth, with customer deposits increasing by over $300 million to reach an all-time high of $8 billion. This marked the highest level of deposit growth in the company's 125-year history and was broad-based, with all lines of business contributing and all product categories showing growth.
The strong deposit growth allowed S&T Bancorp to reduce wholesale fundings by almost $200 million in the quarter, while the quality of the growth was quite strong, with DDA (Demand Deposit Account) levels relative to total deposits increasing to 28% in the quarter, up 1% from Q4 2025.
Chris McComish, CEO of S&T Bancorp, noted that while the bank would have liked to repeat another 16% annualized growth in Q2, they wanted to be realistic about the potential for temporary fluctuations in deposit balances. However, their analysis indicated that $150 million-$200 million of this growth was solid core growth in their customer deposit base.
Dave Antolik, President of S&T Bancorp, provided further insight into asset quality and loan growth, noting that loan balances declined by $113 million in Q1 due to several factors, including a reduced commercial pipeline at the start of the year and increased competition for new commercial deals. Commercial real estate payoffs were also higher than anticipated, primarily as a result of permanent market offerings from non-bank lenders.
Mark Kochvar, Chief Financial Officer, provided more color on the bank's NIM (Net Interest Margin) and efficiency ratios, which remained solid at 3.92% and 55.3%, respectively. He also highlighted the role that buybacks played in improving the ROTCE, with almost $50 million in buybacks in the quarter contributing to this improvement.
The bank's strong performance was also reflected in its ability to reduce wholesale fundings and improve its asset quality. As S&T Bancorp continues to execute on its strategy, investors will be watching closely for further signs of growth and profitability.
