Thank you. Good afternoon, everyone.

Thank you for participating in today's earnings call. Before beginning the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors.

This statement provides the cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation. A copy of the first quarter 2026 earnings release, as well as this earnings supplement slide deck, can be obtained by clicking on the Materials button in the lower right section of your screen.

This will open up a panel on the right where you can download these items. You can also obtain a copy of these materials by visiting our Investor Relations website at stbancorp.com.

With me today are Chris McComish, S&T's CEO, and Dave Antolik, S&T's President. I'd now like to turn the program over to Chris.

Mark, thank you. I want to welcome everybody to the call.

Good afternoon. We appreciate the analysts being here with us, and we look forward to your questions.

I'm going to begin my comments on page three. Before I do that, though, I want to just reflect on the busy week that it's been here in Western Pennsylvania and in Pittsburgh, as Pittsburgh is the center of the sporting universe with the NFL Draft taking place starting today.

Mark, Dave, and I are actually coming to you from the S&T Bank draft headquarters in downtown Pittsburgh, where there's been quite a buzz. We have significant customer engagement events going on, which actually started yesterday evening, and it's very gratifying to see the impact our bank has on the markets we serve and the customer relationships that we've built.

A big thank you to our employees and teammates who are leading the charge building our people-forward bank. We're seeing it firsthand this week with all of these interactions.

Turning to the quarter, our $35 million in net income equates to 94 cents per share, up almost 6% from Q4 2025 and 8% from the first quarter a year ago. Return metrics were strong again this quarter, highlighted by a 1.44 ROA, up seven basis points, and an ROTCE of 13.22, which was up almost 1% over Q4 2025.

Almost $50 million in buybacks in the quarter played a key role in this ROTCE improvement. Our NIM and efficiency ratios remain solid at 3.92 and 55.3%, and Mark will provide more color here.

Asset quality showed good improvement over the last quarter, and Dave will provide more color on both asset quality and loan growth. Turning to page four, I'd like to focus on our strong deposit growth.

For the quarter, our customer deposit growth was up over $300 million. We achieved the highest level of customer deposit growth in the 125-year history of our company, surpassing $8 billion.

This growth was broad-based, with all lines of business contributing and all product categories showing growth. In fact, we showed growth in more than 80% of our branches in the market, which is a real testament to the great work our employees are doing with customers every day and the disciplined customer engagement processes that we've built.

It really is a strong reflection of the customer relationships that we have. This deposit growth allowed us to reduce wholesale fundings by almost $200 million in the quarter.

The quality of the growth was quite strong as our DDA levels relative to total deposits increased to 28% in the quarter, up 1% from Q4 2025. While I'd love to be able to tell you that we'll be able to repeat another 16% annualized growth in Q2, we do want to make sure that we're realistic, as there are always temporary fluctuations in deposit balances.

We've done an analysis, and we do see some seasonal or temporary growth in these balances. However, our analysis would tell you that $150 to $200 million of this growth is what we would define as solid core growth in our customer deposit base.

Again, even at this level, would be one of the best quarters we've had in our history. I'll stop right there and turn it over to Dave, and he can touch on asset quality and loan growth.

Great. Thank you, Chris, and good afternoon, everyone.

Continuing on page four of the presentation, loan balances declined in Q1 by $113 million. Several factors impacted this outcome.

First, we entered the new year with a reduced commercial pipeline as a result of solid activity in Q4 of last year. This, along with increased competition for new commercial deals, especially related to pricing, contributed to lower-than-anticipated new fundings in the first quarter.

Second, commercial real estate payoffs were higher than anticipated, primarily as a result of permanent market offerings from insurance companies and other non-bank lenders who offer more aggressive pricing and structure. Third, we did see a slight reduction in utilization rates on our revolving credit commitments.

Q1 construction fundings were negatively impacted by poor weather, particularly in February. We anticipate increased draw activity in Q2 as projects move forward.

Our construction commitments remained at similar levels to year-end. In our consumer loan categories, we saw reductions in our residential mortgage balances, including construction.

We anticipate this level of reduced activity in Q2. Based on current pipeline and activity, we expect increased growth in our home equity balances for Q2, and we continue to focus on mortgage and home equity products as key components to enhancing customer engagement.

Looking forward, we're adjusting our loan growth guidance to low-single digits for the second quarter. In response to growth pressures, we're focused on adding talent and building for the long term with a goal of increasing our commercial banking team in 2026, primarily focused on C&I additions and some geographic expansion in the CRE space.

During the first quarter, we hired four new commercial bankers and saw a modest increase in our pipelines. Turning to page five, credit results for the quarter were in line with expectations.

Nonperforming assets were down $5.7 million and remain at a manageable level of $50 million or 63 basis points. This reduction was a result of our ability to execute on well-defined asset resolution strategies, primarily related to one C&I credit that was mentioned last quarter.

Loan charge-offs were low at $1.7 million or nine basis points. We saw criticized and classified assets increase during the quarter as compared to year-end 2025, when we were at historically low levels.

C&C loans remain at a very manageable level, and when factored into our reserve methodology, our allowance for credit losses remained stable at 1.17%. Now I'll turn the call over to Mark.

Mark?

Great. Thanks, Dave.

First quarter net interest income declined by $2.6 million, due primarily to two fewer days, which accounts for $1.4 million. We also had an interest recovery in the fourth quarter of '25, that was for $900,000.

In addition, strong deposit growth and loan declines led to a higher cash balance as we adjusted our wholesale borrowing levels. The interest recovery in the fourth quarter of '25 and higher cash levels in the first quarter were the main reasons behind the net interest margin rate decline in the first quarter of seven basis points, to still a very strong 3.92%.

With muted expectations for Fed moves in 2026, we expect relative NIM stability to continue, and believe we are well positioned for the remainder of this year should interest rate conditions change. Tailwinds from our maturing receive-fixed swaps, along with security, fixed-rate loan, and CD repricing, all contribute to stability in the face of somewhat heightened loan and deposit pricing competition.

As we look into 2026, again, we expect relative stability in the net interest margin around the current level, with net interest income growth coming from a return of loan growth. Next, noninterest income, it decreased by $0.7 million in the first quarter.

Debit and credit card activity was seasonally slower, and other includes timing related to some letter of credit fees and distributions from some SBIC investments that happened in the fourth quarter. Our expectations for fees in 2026 remains at approximately $13 to $14 million per quarter.

On the expense side, they were in line in the first quarter, down about $500,000 compared to the fourth quarter. Largest variance was in salaries and benefits, and within that, medical costs were lower with the reset of deductibles, and salaries were lower due to the number of days.

Occupancy was impacted by higher seasonal snow removal costs and utilities. Other taxes also a little bit higher due to the Pennsylvania shares tax, which is based on equity levels.

We expect to manage our 2026 noninterest expense year-over-year increase to around 3%, which implies a quarterly run rate of right around $58 million. With capital, the TCE ratio decreased by 43 basis points this quarter, primarily due to the share repurchases that we completed in the first quarter, over 1,146,000 shares.

The average price was $43.30, total just under $50 million. That brings our total repurchases over the last two quarters to $85.8 million, over two million shares, at approximately 5.5% of outstanding shares.

Our regulatory ratios continue to be very strong, with significant excess capital. We have just over $50 million remaining in our authorized repurchase program.

I'm more comfortable with these levels, even considering additional repurchases. We have more than sufficient current capital and generation capability, to position us well for the environment and enable us to take advantage of organic or inorganic growth opportunities.

Thanks very much. At this time, I'd like to turn the call back over to the operator to provide instructions for asking questions.

Hey, good afternoon, everyone.

Hi, Justin. Hey.

Just wanted to start out on the loan growth. I think you touched on it, Dave, but can you give a little more detail just on how origination versus payoff activity fared in the quarter and then just a sense of where the pipeline ended the period at?

Sure. Relative to origination activity in Q1, as I mentioned, we entered the quarter with a little lower pipeline.

We built pipeline, but the fallout from the early stage pipeline was a little higher than what we anticipated, and that was primarily result of increased competition relative to pricing in the space. We had some lower utilization that impacted balance growth, and as I mentioned, some construction draws were delayed due to weather.

We know those will happen. We anticipate utilization to improve as we move throughout Q2 because it was lower than what we had expected, and there's no specific reason for that other than some specific paydowns that were the result of large draws that happened in Q4 and then repaid in Q1.

Overall, the pipeline is up modestly, and when I say modestly, 10% to 15% over year-end. As we onboard new bankers, continue to be disciplined around pricing, that all kind of boils down to a little lighter loan growth than what we had expected in Q4.

Okay. Then you mentioned some of the hires and adding bankers.

Is that coming across the board, or is it more weighted towards C&I? I know that's been an area you've talked a lot about in terms of just the investments that you've made there.

Yeah. The hiring in Q1 was more C&I focused, but we're hiring both C&I and CRE bankers.

We still feel really good about our ability to grow CRE. We're good at it.

We have historically been able to build a brand in that space, we're adding to that staff as well. Just based on our geographies, there are significant opportunities in the C&I space for us.

The CRE space, as I mentioned in the prepared comments, might include some geographic expansion, particularly in Ohio. It's a combination of the two.

We're also adding business bankers, treasury management officers, really growth-focused positions to the organization.

Great. Then just one last one, pivoting a little, just on the margin guide, calling for stability here.

Would think this higher-for-longer environment, that I suppose we're in, is beneficial. Just trying to square some of the puts and takes as far as loan repricing.

I'm not sure if there's anything that offsets that as far as funding costs, perhaps maybe moving in the other direction and starting to see upward pressure. What are some of the underlying assumptions there?

Yeah. I think we're kind of back to thinking that there's not going to be a lot of rate decrease, and given that, we would have some natural improvement in margin.

As Dave mentioned, we have seen some higher competitive pressures, particularly on the loan side. Factoring that in, that's kind of gets us to more a flatter NIM as we move throughout the year.

We still have those tailwinds, but the thinking is that a lot of that might get absorbed by the more competitive loan environment.

Okay. What does that, I guess with spreads tightening, where is new production coming on the book set, and how does that compare to what's repricing or rolling off, if you have that detail?

On the spread side, I think we're kind of in the mid, a 2.25 range, and we've seen that slip probably five or 10 basis points over the last quarter or two.

Yeah. The bank competition, we've saw two deals that I'm thinking of right now that were sub-two that we decided not to move forward with or we lost due to the competition.

For us, it's about getting more looks, which leads to adding more bankers, and that'll allow us to accelerate growth. We also want to be cognizant of the impact that that growth has on the NIM and net interest income.

Understood. Great.

I will leave it there. Thank you guys so much.

Thank you, Justin.

Thank you, Justin.

Thank you. Good afternoon, everyone.

Maybe starting first on the capital and the buyback side, you did about $50 million in the first quarter, you've got a similar amount remaining in the authorization, I think you just said. Capital still really strong, CET1 over 14%, really by any measure you look at.

Do you think that it's in the cards to re-up that authorization and continue the repurchase further out than just the second quarter? Or how are you guys thinking about the trajectory of buybacks given the level of capital you have and the growth expected?

Yeah. I think as we definitely take in a very hard look at the remaining authorization.

I think we'll see how that goes before we look at a next leg of that. Our internal target ratios, the next 50 will put us quite a bit closer to that, we may enter more of a maintenance phase in terms of target capital ratios at that point.

Then going forward, it might be more dependent on that growth trajectory from there and how much capital that uses up.

Okay. Remind me what the target capital ratio is, if you don't mind.

We're looking to be across the different ratios, above kind of median peer level, between median and 75th percentile. They vary for the different ratios, but we want to make sure that we have enough to grow and enough to take advantage of a merge that might arise or that might present itself.

Danny, this is Chris. I that's what I want to re-emphasize.

You have given us the the financial flexibility that we have is is a, is a real benefit for us. As as Mark described, that being able to to think about this in an and organic growth while at the same time having the financial flexibility, should an inorganic opportunity present itself, is is important to us.

By the same token, we knew as we were getting, north of 14% and so we were, we're it makes makes sense to dial that back. As Mark said, that those ratios closer from 50 to 75th percentile make a lot more sense to us long term.

Understood. Then maybe just diving in a little bit on the hirings, the last question talked about it a little bit, but you said that the new geographic expansion, I think you mentioned Ohio.

Just curious if you could provide a little more detail on the markets where you're be hiring.

Sure. We've got a group of bankers in Columbus, and we're looking westward, Cincinnati market perhaps, and then in Northeast Ohio, expanding more towards Cleveland.

There are opportunities in those two markets that we think we can take advantage of as we grow. We've also in our Eastern Pennsylvania franchise done a lot of work into Maryland and Delaware, particularly in the CRE space.

We think there's more opportunity there for us to grow as well.

Great. All right, I'll step back.

Thanks for the answers.

Thank you.

Thanks, Dan.

Hey, good afternoon. Thanks for the question.

I would love to follow up on that capital question since you mentioned M&A. I'll bite on if you could maybe Chris, give us an update on the pace of conversations.

Clearly, there's a M&A window open at this time and how things are going.

What I would describe them, we're consistently having discussions and we look at opportunities. We're disciplined, as you can tell, and we're going to remain so.

I think you're right, Kelly, there's a window here that seems to make sense, and we would like to capitalize on the right opportunity should it present itself. We haven't slowed down at all in the number of conversations that we've had, and quite honestly, the financial performance, the returns that we're able to deliver, that opens up windows for conversations for us.

That's what we want to be able to capitalize on those things.

Great. That's great color.

I would like to switch back to the deposit growth, cuz clearly that was a major highlight of the quarter and something you guys have been working really diligently on. Just wondering if there was one or a couple things that really drove that outsized growth, if it was just things moving in the right direction and kind of just all clicking here, any sort of market dynamics?

It clearly was a remarkable quarter for you. Hope to get some color.

Thanks for that recognition, Kelly. It's a real point of pride for our employees.

I'm coming up on my fifth year here at the company in another couple of months, and we've been pretty unrelenting on our focus on the importance of building on a high-quality core deposit franchise. We've seen positive momentum over the last 18-plus months in the consumer side of our business.

We've talked a lot about the rigor and discipline of our customer engagement process that we define as CARE. You think, well, how do you know it's working?

I'll go back to the anecdote that I provided to you. When we saw broad-based growth in 80% of our branches in the quarter, that tells me that the right customer interactions are taking place.

We've also talked a lot about the way that we manage exception pricing and the need to be dynamic with that, at the same time, responsive. That's a process that was built over the past couple of years and it continues to work in this environment or a rising or declining rate environment.

On the commercial side of the business and business banking side, we've spent the past few years working on enhancing our treasury management capabilities, the number of teammates, both in commercial banking as well as business banking. We're seeing good momentum there, and we know that a portion of this on the commercial space was through new customer acquisition that added to it.

As I did say, one of the other things that we looked at, I don't know if you've seen this in other calls that you've had, was, well, what was the impact of the tax law changes? What we saw were tax receipt deposits into our accounts, a year-over-year growth was about $30 million.

A higher tax refunds did contribute to some of this. That's why we were guiding toward all $300 million probably isn't going to stick forever.

There's some fluctuation in it, but what we can tell, we feel really good about that $150 to $200 million, which, by itself, would have been a really, really strong quarter.

Great. That's really helpful.

Thanks for the color. I'll step back.

Good afternoon. This is Tyler on for Matt Breese.

Hi, Tyler.

Maybe just to follow up on the M&A commentary. Can you just update us on what the ideal target would look like and if there's any ideal size or whether you'd want to dive into new markets or maybe complement existing ones?

I'll be consistent, Tyler, with what we've talked about in the past. We look geographically at the core markets we're in and in adjacent markets.

We're active in building relationships throughout that geography. We're, if you think about a pure acquisition, given our size, you're talking about banks probably in the $1 to $6, $7 billion range make sense from a size standpoint.

That's been our focus. Very very focused on quality of the core deposit franchise, cultural fit, ability to accelerate growth in the company are kind of the criteria that we look for.

Understood. Thank you for the color.

Then just moving to credit, nice to see the charge-offs move much much lower, led to quite a bit of a lower provision than what I was expecting. Maybe just talk about what you're seeing from a credit perspective going forward and what levels of charge-offs you're comfortable running the bank at.

Just trying to get a sense of how to model the provision from here.

Yeah. I think in total for 2026, we would expect similar total results relative to 2025.

Level of charge-offs, kind of NPLs, we're targeting to reduce from where we are now, modestly. As I mentioned in the comments, though, we did see a slight uptick in our criticized and classified assets, but didn't have a significant impact on provisioning or large increase in the ACL.

There's nothing outsized that we anticipate, just normal movements. We're a commercial-focused bank, when something happens negatively from a credit perspective, it tends to be a little larger than a bank that might have a larger consumer base.

We acknowledge that, but we have really fine-tuned our methodology and spend a lot of time, obviously, internally as a management team talking about the impact of asset quality and how we can get ahead of things and forecast better.

Obviously, in addition to that, is just the external environment, right? You see the run-up in gas prices and oil prices and things like that, and we believe that that is not really impacted the economy dramatically right now in the short term, but if it continues this way, you could see things impacting it for all of us down the road.

We're not outsized one way or another, but there's a lot that we also don't control that we have to pay attention to.

Understood. Thank you.

Then just a real quick one on deposit costs, if you have the detail. Do you have the spot cost of deposits at quarter-end or in the month of March?

I have

the margin for the March was where we ended for that quarter. On the overall spot deposit number for the month, that would have been right around Did I have it right for money?

Total deposits, right around at two and this is costing only, 2.47.

Great. Thank you.

I'll step back here.

Tyler, thank you.

Thank you.

Hey, good afternoon, Chris. Excited for the draft down here.

Hey, Dave.

We're not going to say anything about Baltimore, Dave.

Come on. You got it.

I'm sure you're waving your Terrible Towel up there.

That's right. Dave Antolik has his eye black on right now.

He's locked in. I'm wearing a Steelers helmet as well.

I love it. Hey, a lot of my questions have been asked and answered, but curious, you had the good growth in deposits and maybe some cash flows from the loan portfolio sitting in cash at the end of the quarter.

Is that sort of earmarked for funding expected loan growth? I don't know if you see any line of sight to maybe temporary deposits outflowing.

Just curious how we should think about cash levels moving into the back half of the year.

We do expect those to decrease. We still have some wholesale borrowings that we have an opportunity to reduce, so that would be the first priority.

Then as Chris mentioned, we do expect some of that to potentially roll off here at least temporarily in the second quarter. We'll keep some cash powder dry for that, and then the return of some loan growth in the second quarter, but then perhaps more in the back half of the year.

I think that that cash will not stay at those levels for a combination of all those things, reducing wholesale and then the natural deposit fluctuations and then return to loan growth.

Got it. Then I guess final question.

As you look across your fee income segments and categories, any areas, with all the changes you've implemented here, you're most bulled up about for augmentation as you look out into the rest of the year? Thanks.

It's sometimes hard to see in the numbers, but we have seen some encouraging pick-up on the treasury management side that we talked about. There's a group within that, kind of the non-account analysis group, that we've seen some improvement on, especially in the last couple of quarters, and there's a renewed emphasis with that in the bank and then especially in our business banking group.

That's something that we have higher expectations for. Then just on the basic treasury management side, on the account analysis, we did some price adjustments that helped in the first quarter, and that group is making some headway in the market as well.

I think that the deposit fee on the treasury management AA side probably offers some potential. Then financial services has been solid for us as well.

Dave, the non-analyzed treasury management services, that's really the result of work that we started a couple of years ago. We built a product for the business banking space that provided a combination of, call it, six to eight important treasury management products, anything from information reporting to collection and disbursement services, fraud protection, those kinds of things, packaged them into basically one price.

Then we rolled that out a couple of years ago, trained our teams, put it in the market. We believed at the time it was a differentiating factor, and we're seeing balance growth come from it as well as some treasury management fee income and the annuity nature of that.

It's nice to see something going from concept to reality and starting to see some results.

Got it. That's great color.

That was all I had. Thanks.

Sure thing.

As we always say, thank you for your interest in our company and your good questions and the relationships that you've built with us. It's really, really important to us.

We're, again, really proud of the performance that we're showing, looking for continued growth and impact in the marketplace. Spring is here, the weather has turned, and there's a lot of optimism in the air.

Thanks all for your time, and have a great rest of the day.