Great. Thank you, and good afternoon, everyone, and 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. The statement provides cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation.

A copy of the second 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. That 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 CEO, and Dave Antolik, S&T's President.

I would now like to turn the call over to Chris. Chris?

Mark, thank you. Good afternoon, everyone, and thank you for joining us today.

We appreciate the analysts and investors being with us, and as always, we look forward to your questions. Before I get into the quarter, I did want to take a minute to recognize the broader momentum we are seeing across S&T.

Our financial performance is one important measure of that momentum, but we also continue to see it reflected in the strength of our customer relationships and the trust customers place in our company. That was reinforced this quarter when S&T was named to the Forbes America's Best-in-State Banks 2026 list.

This is recognition based upon direct customer feedback across areas such as trust, customer service, financial advice, digital experiences, and overall satisfaction. Also during the quarter, we celebrated our 124th year, which means we begin celebrating S&T's 125th year legacy this quarter.

This recognition is a timely reminder that our long-term success has been built on those same fundamentals: serving customers well, investing in our communities, and delivering value for our shareholders over time. These commitments have helped us navigate change, strengthened our culture, and positioned the bank to thrive for the next 125 years and beyond.

Now turning to our financial results, I'll start on slide three. Turning to the quarter, we delivered a very strong performance.

Net income was $36.6 million, or $1.02 per diluted share, up 8.5% from the first quarter of '26, and 22.9% from the second quarter of last year. Return metrics were also solid.

We reported ROA of 1.49%, ROE of 10.375%, and a ROTCE of over 14%. These results reflected the benefit of higher earnings, continued discipline across the company, and the impact of our share repurchase activity.

Our operating performance was also strong. Net interest margin expanded 7 basis points from the linked quarter to 3.99%, supported by both higher loan yields and a better funding mix.

Net interest income increased to $90.4 million compared to $88.4 million in the first quarter and $86.6 million a year ago. Importantly, we are seeing positive year-to-date operating leverage.

Through the first 6 months of the year, revenue growth has outpaced expense growth meaningfully, and our efficiency ratio improved to 55.38% compared to 57% for the six first 6 months of 2025. As is noted, asset quality showed improvement during the quarter with low net charge-offs of just $1 million, and non-performing assets decreased by almost $10 million to 0.5% of total loans and OREO.

On page four, loan growth was $99 million, or 5% annualized. On the deposit side, customer deposits were stable in the second quarter after very strong growth in the first quarter.

Year-to-date deposits are up almost approximately 8% annualized. At the same time, we reduced broker deposits $100 million during the quarter and $180 million year-to-date, which again improved the quality of our funding mix.

DDA levels remain at an industry-leading 28% of total deposits, highlighting the value of our relationship-based model and the quality of our core deposit base. We continue to actively manage capital also.

As over the past three quarters, we repurchased almost 3.2 million shares representing 8% of outstanding shares for a total of $133 million. We also got board approval yesterday for reauthorization of another $100 million opportunity.

Our strong capital position gives us the flexibility to continue to support organic growth, remain disciplined around capital returns, and evaluating strategic opportunities as they arise. In summary, this is a very good quarter for our bank.

We delivered meaningful EPS growth, solid returns, favorable asset quality, positive year-to-date operating leverage, and continued capital management through share repurchases. I'm going to stop right there, turn it over Dave.

He can talk about asset growth, pipelines, and asset quality.

Great. Thank you, Chris.

As Chris mentioned in referring to page four, total loans increased by $99 million during Q2, representing approximately 5% annualized growth, driving balances to over $8 billion. We're encouraged by both the composition and the quality of this growth.

As discussed on previous calls, we are strategically focused on building our C&I capabilities, and our investment in talent is beginning to pay off. During the quarter, we increased our C&I banker count, and have increased our total commercial banking team by approximately 20% year-to-date with a goal of reaching 30% by year-end.

These hires strengthen our ability to deepen customer relationships, expand our presence in attractive markets, and support long-term loan and deposit growth. The results can be seen in our C&I portfolio.

During the quarter, C&I balances increased by $79 million. We saw encouraging signs from our C&I customer base with revolving line utilization increasing from 41% to 44% quarter-over-quarter.

At the same time, total C&I revolving commitments grew at 6% annualized, demonstrating continued demand from our customers along with increased banker productivity. Permanent commercial real estate balances declined by $46 million, primarily driven by loans that were paid off by non-bank lenders.

While this created a headwind to the portfolio growth, it also reflects the continued quality of our borrower base and the attractiveness of these projects to the permanent market. Importantly, we remain committed to supporting well-capitalized developers within our footprint.

As a result, commercial construction balances increased by $71 million during the quarter. Additionally, total construction commitments increased by $55 million, and the total number of commitments increased by nearly 19% in Q2, providing further evidence of solid customer activity.

Looking ahead, our CRE and C&I pipeline activities remain solid and support our expectation for annualized mid-single-digit loan growth for the balance of 2026. Turning to asset quality on page five, our portfolio continues to perform in line with our expectations, demonstrating our disciplined underwriting approach and ongoing portfolio management efforts.

Non-performing assets declined by $9.7 million during the quarter to $40.2 million, or 0.5% of total loans plus OREO. Criticized and classified assets remained stable during the quarter while losses were very low.

Net charge-offs totaled just $1 million during Q2, resulting in a modest provision expense of $1.1 million. Given the continued stability of the loan portfolio, the allowance for credit losses remained essentially unchanged at 1.16% of total loans compared to 1.17% at the end of Q1.

Now I'll turn the program over to Mark.

Thanks, Dave. Second quarter net interest income increased by $2 million due to an additional day, combined with improvements on both the yield on earning assets, which were up 4 basis points with better commercial performance, and the cost of funding, which is down 4 basis points due to lower interest-bearing deposit rates and also a better funding mix.

We expect relative net interest margin stability around the current high 3.90s level to continue for the next several quarters and believe we are well positioned should interest rate conditions change. Tailwinds from our maturing received-fixed swaps on some remaining security fixed-rate loan and CD repricing all contribute to stability in the face of heightened loan and deposit pricing competition.

Net interest income growth will be supported by improved loan growth. Average loan balances were actually down in the second quarter due to the timing of the growth in the first half, but we expect average loan balance growth going forward.

Customer deposit growth momentum remains good, even in the face of this increased competition, which should contribute to maintaining spreads and net interest margin rates. Next on non-interest income, we saw an increase of $1.3 million in the second quarter.

Increases were broad-based with improvements in really every category. Debit and credit card activity was higher after a seasonally slower first quarter.

Investment services is up with better customer activity and market improvements. The gain on sale is the net of a $1.9 million gain on the conversion of Visa Class B-2 shares.

We were offset that for the most part with a $1.7 million loss on a small $34 million bond portfolio repositioning. The bond repositioning has an earn-back of about 1.4 years.

It will add $300,000 per quarter to net interest income for the next several quarters. The other category variance is due to one-time items.

We had some partnership income and an unrealized gain on some equities that we own. Our expectations for fees in the second half of 2026 is approximately $14 million per quarter.

On to non-interest expenses, which increased by $2 million in Q2, the largest variance was in salaries and benefits. Within that, salaries were up due to merit increases going into effect in April.

We also had some higher medical costs as deductibles were met during the first part of the year. Occupancy improvement was impacted by higher seasonal snow removal and utility costs in the first quarter.

Marketing reflects just the timing of various promotional efforts. Other variances include tax-related contributions, which are offset by a favorable variance in other taxes.

We had some higher T&E and employee recognition, along with some recruiting fees. We expect to manage our 2026 non-interest expense year-over-year to around 3% increase, which implies a quarterly run rate of around $58 million.

For capital, the TCE ratio decreased by 28 basis points this quarter, primarily due to the share repurchases we completed in the second quarter. Again, for the quarter, we repurchased about 1.1 million shares, average price of $44.24, with a total of $47.6 million.

Our regulatory ratios continue to be very strong with significant excess capital. We are evaluating next steps with respect to our capital management strategy and further buybacks.

We're comfortable that even considering additional repurchases that were recently authorized by the board, we have more than sufficient capital currently and the generation capabilities that will position us well for the environment and enable us to take advantage of organic or inorganic growth opportunities should they arise. Thanks very much.

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

Thank you. Good afternoon, everybody.

Hey, Dan. Hey, Dan.

How's it going? I apologize if you gave this already, but the loan growth guide, was it mid-single-digit again that we're looking for

the

rest of the year?

Exactly, Dan. Mid-single-digit.

Okay. All right.

Great. In terms of the deposits, I know you've called out it's been strong year-to-date, still thinking that kind of full year will fund the loan growth or how are you thinking through the deposit trajectory?

We fully anticipate, based on pipelines activity we've seen year-to-date that we'll be able to self-fund through deposit growth.

Okay. Great.

Then I appreciate the commentary on the buybacks, but maybe just if you could just put a little more clarity around kind of how you're thinking about that other than opportunistic. You got the $100 million re-up there and then is that assuming kind of a stable stock price or stable growth in the stock price?

You think that's something that you expect to use on a somewhat regular basis over the next several quarters? Obviously it's dependent in part on the loan growth that comes through, I get that, but just your thoughts on your intention to use that over the next year, I guess, as the authorization.

It does last for a while. With the stock price moving higher, the calculus does change.

We are taking a closer look at that. I think it is something that will have opportunity to use over the next year, but again the dynamics have changed as the prices move higher.

Based on today's price, do you think that's something you're still interested in utilizing?

Probably not to the same degree as we've been. We've been pretty active the last three quarters.

We would consider or look more closely at potentially stepping that back somewhat at current levels.

Okay. If that happens and maybe the stock goes higher and it becomes less attractive, what do you think you would do with the capital at that point absent kind of looking for other M&A opportunities?

I think we haven't stopped looking for M&A opportunities and other things to do both organically. We would continue on that.

As you know with the buybacks that we've made, the improvement to the returns are meaningful. Again the kind of incremental improvement that we get from the buybacks begins to get a little bit more constrained.

I think that's one of the things as we go into our planning process for the year, that's something that we'll have to look a lot closer at over the next quarter or so.

All right. Understood.

Thanks for the call, guys. Appreciate it.

Nice quarter.

Thanks. Thank you.

Good afternoon. Hey, Chris, you mentioned the ability to attract new commercial bankers, and you called out the C&I growth.

Just maybe some color on the increase there, how much represented maybe new client penetration versus existing customers getting more aggressive and utilizing lines and getting more optimistic on lending. Thanks.

Hey, Dave. Dave Antolik.

The majority of the growth was related to utilization rates increasing. As I mentioned, we've seen the total revolving commitment grow as well, which would represent additional credit extended to existing clients as well as new customers.

It's a good mix. The growth in C&I was outsized and a little more than what we'd expected from the quarter because of the increased utilization rates.

Which was interesting because utilization had dropped a little bit in Q1, and then it came back and fell into 2Q and pushed a little bit higher, so. The math becomes: keep the utilization rate cuz it's now at a level where it was prior to Q1, keep that consistent, grow the overall customer base, which is the purpose behind hiring these new C&I bankers.

Got it. Then I'm not sure if I missed it during the preamble, but positioning for potential rate hikes here in terms of the margin, just curious thoughts on sort of the puts and takes there as we head into the second half of the year.

Thanks.

I think with respect to our rate sensitivity, we feel like within 25-50 basis points, I believe even a little bit more either way, that we're fairly neutrally positioned right now. We still have some of those tailwinds that I mentioned with the swaps and some of the back book repricing that should support us over the next several quarters.

It's hard to know what the Fed's going to do, but we think that we can hold on the margin for the next several quarters at least, in spite of any rate changes that might happen.

Great. Thank you.

Hi, good afternoon. Maybe sticking on the point of the margin, it was really nice to see deposit costs come down in the quarter, including the rate on CDs.

I'm wondering, as you look out from here, is that tailwind kind of leveling off with the upcoming maturities coming up, and can you provide any spot color on deposit costs or what the incremental cost of new funding is coming in at? Thank you.

You're right. We still got some repricing benefit on the CD book.

That has, maybe a couple more months to run, we might see a little bit more benefit in Q3. After that, we're pretty much leveled off and re-pricing at the same cost cuz that book is fairly short.

We're still highly concentrated in that 6-month 6-month timeframe. That's why we'll start to see some uptick potentially after Q3 in deposit costs as there's still is some repricing and some exception pricing being made.

To the extent we can hold on to the good mix that we have, we shouldn't see it move too much going forward.

Got it. That's helpful.

Maybe one last question for me, just refreshing, Durbin. Looks like you're $9.94 billion in assets, very flat quarter-over-quarter.

It seems like, given your kind of mid-single-digit growth outlook on loans, you will potentially run through that. Is that still a good assumption, or do you have some levers here that if you don't get a deal, you can plan to navigate under on in organic basis?

Thank you.

Given the trajectory that Dave described on the loan side, if we're successful with that, we would anticipate a cross here in the second half. As long as that comes true, we will go.

In the first first half of the year, we saw a decrease in loan balances in the first quarter. That sat in cash for the most part at the end of the first quarter.

In the second quarter, even though we had loan growth, we kind of right-sized the cash balance, it looked like we were flat. It was really back to the balance sheet actually being probably down under the hood in the first quarter, and it's just kind of bounced back here in the second quarter.

Our trajectory should take us over $10 billion in the second half.

Got it. Thank you so much.

Kelly, it's Chris. As we've talked about before, we're talking about a little over $6 million annualized doesn't impact us, assuming we went over at 12/31, half of that would hit in '27, the other full amount of that would hit in '28, and our job is to lead the company through that, and we feel very confident that we can.

Good afternoon, guys.

Hey, Dan.

Hey, Dan.

Just kind of following up on Kelly's question with the crossing of the $10 billion threshold and the $6 million gap that would be created there, how long do you think it would take your new hires to kind of fill that gap? Do you think that can kind of happen in '28, or is that going to take a little bit longer for that to really occur?

The new hires and the growth of the balance sheet is just one lever that we would pull. We're not going to take on additional risk from an asset growth standpoint to have that overcome.

We will remain disciplined. We'll continue to look at expense-saving opportunities that could make up some of that and generating other forms of fee income.

If you think about an $8 billion balance sheet on either side of the loan and deposit make-up, you're talking about a basis point or two to make up $6 million annualized in net interest income. We, Dan, we just feel confident that we're going to be able to pull any number of levers in order to overcome that kind of number.

We made $36 million this quarter. It's quite consistent with the growth that we're seeing, and so we don't want to do anything that is overly aggressive to make up that number.

We believe we can do it through what we've shown over time, and that's the effective running of the company. You look at the operating leverage that we have right now where we grew net interest income around 5% first 6 months of the year, expenses were closer to 1%.

That operating leverage is pretty significant, and that can translate to making up those kinds of savings.

Just to clarify that we had a question come in on the timing of the impact. If we crossed here in the second half, that would start in the second half of 2027.

Right.

Okay. Got it.

Perfect. Then just returning to loan growth in the quarter, what was the impact [coughs] from paydowns and payoffs in the quarter?

We did see that commercial real estate permanent loan bucket decline. As you may know, the CMBS market is relatively active, and the permanent insurance market.

We continue to fund through on our construction loans in support of those same borrowers. Based on what we see from existing commitments and demand in the market, we believe that that kind of pace can be continued.

That pressure, that headwind from the permanent market is going to continue to be something that we're going to face throughout the balance of the year and certainly in the next year. The paydowns were a little bit lighter than typical in the quarter, we did get a little bit of a benefit there in terms of the net growth by having slightly lighter, but looking ahead, we don't see that as being a trend.

Okay. Got it.

Perfect. All right.

All my other questions have been asked and answered. Thank you, guys.

Thanks. Thanks, Dan.

Hey, good afternoon, guys.

Hi, Matt. ):

Maybe we could just touch on pipeline yields, spreads, and between C&I and commercial real estate, and curious how competitive dynamics are playing out in your markets. It just sounds like elsewhere in kind of the Mid-Atlantic, things are heating up competition-wise.

I'm curious what you're experiencing.

If I if I look at just strictly pipeline, approved pipelines from first quarter versus second quarter, we're up modestly in both CRE and C&I, more more so in the CRE space as a as a recognition of those hirings that that we've made. We have some pretty decent ABL pipeline activity that's headed our way that could help us with incremental growth.

I turn to consumer, you know mortgages similar to where it was Q1. I would expect mortgage activity to look in Q2 similar to how it did in Q1.

Then looking at consumer home equity, I would expect Q3 based on pipelines today to show similar growth, maybe a little higher in Q3 than we did saw in Q2. Kind of all those things combined give us that outlook to you know of our of our guidance of mid-single-digit total loan growth for for Q2 or, I'm sorry, for for the balance of the year.

):

How are yields holding up?

Yields they're holding up. There's still competitive pressure, but so far so good.

We're disciplined relative to how we price, and the market particularly in the areas where we see the most activity, construction, there's still a reasonable return based on the risk that we take in that book, and the market's willing to accept that pricing. We haven't seen any significant pressure there.

We've seen some additional pressure in the deposit book. You're seeing CD pricing and money market pricing competition become more aggressive, particularly from smaller banks.

Our larger bank brethren aren't as aggressive when it comes to deposit rates, but there are some smaller bank competition who tend to be a little peskier when it comes to pricing deposits. ):

Maybe to put a finer point on it, as you could have guessed, are your pipeline yields still better than 6.50%? No.

No. ):

Okay.

Overall, the new loan rate over the quarter was just over 6%. I anticipate that the pipeline probably reflects very similar sort of rate.

):

Got it. Okay.

Chris, I know this comes up every quarter now, especially as you kind of [clears throat] inch towards 10 billion, but how are M&A discussions coming along,

and

are conversation activities mimicking overall deal volumes that we're seeing in the space, which is pretty slow?

I would say conversation activities haven't slowed down from the standpoint of thinking strategically about partnerships. I think those activities continue to be at an acceptable pace, and I haven't seen a significant decline in those sorts of things.

We continue to remain in the market and proactive with potential partners as we do believe it's an opportunity for us down the road. ):

Are there a number of deals that since you've stepped into the seat that you've passed on, and maybe elaborate on whether or not that kind of makes you a more selective buyer than we might normally see?

I'm not going to go there comparing myself with others or ourselves with others, but yeah, there are a number of deals that we've chosen not to move forward with. We think about what is important to our company: cultural fit, business mix, the makeup of the company.

One of the things that we've been working on hard over the past few years is continuing to grow and enhance and build that deposit franchise. Some of the targets that we'd look at maybe more of a asset play than a customer deposit play, and that something like that may not be as appealing to us as it would be to somebody else.

Then we also, as we've talked about in other quarters, Matt, we think about geographic expansion in those contiguous markets south and east of us, and through the state of Ohio are all very attractive to us. We're not slowing down in the number of conversations, and that remains active.

We've looked at a number of things that we've chosen not to pursue. ):

Great. I really appreciate that.

I'll leave it there. Thank you.

Sure thing.

Hey, good afternoon, guys. On the loan growth, in particular C&I, and I know you folks have been talking about that as a focus for a while, and of course bore fruit this quarter.

I know it can be a lumpy area, but can you talk about expectations there going forward and perhaps just any comments on are there any specialty groups or certain geographies driving that growth?

Justin, if you look at where we've hired, if I think about this more geographically than cuz we're pretty well diversified when it comes to industry, but geographically, the majority of the hires were in Western Pennsylvania, so that's where we're seeing activity. We've also made a number of hires in Northeast Ohio, where we're seeing some increased pipeline.

We also added one C&I banker in Eastern PA. It's pretty well diversified both geographically, and again, looking at industry and concentration, there's nothing meaningfully that's moved, and nor do we anticipate that.

We're relatively opportunistic, making sure that we have the right people in place, disciplined underwriters and portfolio managers.

One area that Dave touched on earlier was our asset-based lending group that is seeing nice activity, and pipeline looks solid there, and is part of the growth equation as we move forward.

Got it. Then I guess just pivoting a little, just sort of related to the conversation on buybacks, what are sort of your broader thoughts on capital levels, where they are?

Certainly still very strong, but of course down from the peak. Is there a certain ratio or ratios where you targeting a certain threshold?

What does that thought process look like?

We take a combined sort of a bottoms-up approach to try to build at least some levels that above which we're comfortable at, based on regulatory environment plus our internal capital stress testing that we do to see how much capital we need as a cushion, and then making sure that we have that plus. We still think we have some room to reduce that, the decision really becomes how do we manage that better?

It was so large that buybacks I think made sense for that first round of it, but as we're starting to utilize that more, some other avenues like different types of asset growth and certainly the M&A piece comes into play. We have some internal targets, but we still feel like we have space above that to maneuver.

Okay. I don't know if you're really able to quantify that much further, but do you look at regulatory ratios in terms of staying above a certain level?

That's the part of the building blocks. We would start with the regulatory definitions and then add a cushion to that, and then build upon that with what our stress testing is telling us that we would need to cover extreme event in the market.

That becomes kind of the floor of the target range for us.

Got it. Then one just quick last one, kind of a modeling question, but just on expenses, if I heard it correctly, I think you threw out the $58 million number in terms of kind of the right way to think about the base going forward.

Just kind of curious what kind of, I guess, is going to drive that lower from where you were in the second quarter just as we kind of think about the next few periods modeling ahead.

There's quarter-to-quarter there's always a little bit of lumpiness on the margin. This particular quarter, there were a couple things that don't necessarily repeat that were slightly higher.

The main drivers of our expense, the amount of people that we have and how much we spend, that's been and we anticipate that to be fairly consistent. We think, just given the kind of minor lumpiness of expenses just generally that that $58 million level is something we'll be able to manage to for at least the rest of this year.

Got it. Great.

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

Thank you.

Thank you.

Thanks everybody for being on the call. I know these are busy days for all of you with the number of earnings announcements, but we certainly appreciate your engagement with our company and your very good questions.

Have a great rest of the day, and we look forward to talking to you soon. Thanks.