STBANCORP SHINES IN Q3 2026: RECORD EARNINGS, EXPANDED MARGINS, AND FAVORABLE CREDIT QUALITY
STBancorp, a leading financial institution, has reported an impressive set of results for the third quarter of 2026. The company's strong performance has been reflected in its record earnings per share of $1.09, up nearly 20% from a year ago and almost 7% from last quarter. This achievement demonstrates the success of STBancorp's disciplined financial strategy.
STBancorp's President, Chris McComish, highlighted the company's commitment to making a broader impact beyond delivering strong results for shareholders. The American Bankers Association recently recognized STBancorp with an award for supporting military families, marking the second year in a row that the company has received this recognition. This honor underscores the company's dedication to its People Forward purpose of making positive impacts in the lives of those it serves.
The third quarter results also reflect STBancorp's strong operating performance. Net interest margin expanded seven basis points from the linked quarter to 4.06%, supported by higher loan yields and an improved funding mix. Importantly, the company is seeing positive year-to-date operating leverage as revenue growth has outpaced expense growth. This improvement in efficiency ratio has resulted in a lower ratio of 54.65% compared to 56.35% for the first nine months of 2025.
Asset quality trends remained favorable for STBancorp, with net charge-offs of $2.1 million, or 10 basis points of total loans, and non-performing assets declined again this quarter by $3.7 million to just over $36 million, or 0.45% of total loans plus OREO. The company's balance sheet also reflected strong growth in average loan balances for the quarter, which were up $61 million.
Tangible book value increased $0.10 per share to $29.28 despite a significant increase in AOCI related to the impact of higher interest rates on STBancorp's bond portfolio, which reduced tangible book value by $0.66 a share. The company's funding profile remains a source of strength and has improved significantly this year. Demand deposits continue to represent a significant component of STBancorp's deposit base at 28% of total deposits.
Overall, STBancorp's performance in the third quarter of 2026 is a testament to the company's disciplined strategy and dedication to delivering strong results for its stakeholders. The company's commitment to making a broader impact beyond financial performance has also been highlighted through its support for military families and recognition by the American Bankers Association.
