S&T Bancorp (STBA) has reported another solid quarter, with Q2 2026 revenue of US$104.1 million and basic EPS of US$1.02 supported by net income of US$36.6 million. The trailing twelve months show revenue of US$404.7 million and EPS of US$3.78. Over the past few quarters, revenue has moved from US$98.1 million in Q2 2025 to US$104.1 million in Q2 2026, with basic EPS over that stretch running between US$0.83 and US$1.02, contributing to trailing twelve month net income of US$140.6 million. For investors, the latest results indicate a bank that is pairing revenue growth with stable EPS and margins that appear supportive of the current profitability profile.
See our full analysis for S&T Bancorp.With the core numbers on the table, the next step is to see how this earnings run rate aligns with the prevailing stories about S&T Bancorp, and where the recent results may confirm or challenge those narratives.
See what the community is saying about S&T Bancorp
Net Interest Margin Near 4% Supports Profitability
- Net interest margin for S&T Bancorp in Q2 2026 was 3.99%, compared with 3.92% in Q1 2026 and 3.88% in Q2 2025, with the trailing twelve month margin cited at 3.9% alongside a net profit margin of 34.8% versus 33.7% a year earlier.
- Consensus narrative points to disciplined risk management and solid loan and deposit growth as reasons for earnings stability, and these margin figures line up with that view in several ways:
- Quarterly net income, excluding extra items, has stayed in a tight band between US$31.9 million and US$36.6 million from Q2 2025 to Q2 2026, while the net interest margin range of 3.81% to 3.99% suggests the core lending spread has been consistently supportive of profits.
- The trailing twelve month net income of US$140.6 million, paired with the 34.8% net profit margin, indicates that the earnings profile backing the consensus narrative is coming from ongoing operations rather than a one off spike.
Loan Book Near US$8.1b With Credit Quality Watchpoints
- Total loans sat at US$8.1b in Q2 2026, close to the US$8.1b level in Q4 2025, while non performing loans on a quarterly basis have moved between US$21.3 million and US$55.6 million over the last six reported quarters and were US$40.2 million in Q2 2026.
- Bears argue that S&T Bancorp is exposed to geographic concentration and higher regulatory pressure that could affect credit costs, and the non performing loan data provides a few checks on that concern:
- Non performing loans peaked at US$55.6 million in Q4 2025 on this data, then were US$49.9 million in Q1 2026 and US$40.2 million in Q2 2026, so recent quarters show lower reported problem loans while total loans stayed around the US$8.0b mark.
- The combination of a sizeable loan book near US$8.1b and trailing twelve month net income of US$140.6 million suggests that, at least over this period, earnings have been able to absorb the credit costs implied in the non performing loan figures without visible pressure on profitability metrics.
Valuation Gap Versus DCF And Peer P/E
- The stock trades on a trailing P/E of 13x with a current share price of US$51.79, compared with a peer average P/E of 24.2x, an industry average of 12.1x, and a stated DCF fair value of US$70.79 that implies the shares are about 26.8% below that modelled fair value.
- Supporters of the bullish side highlight S&T Bancorp's earnings record and capital flexibility, and the valuation data offers some context for that stance:
- Trailing twelve month earnings growth of 7.4% against a five year annualized earnings growth of 4.5% means the current 13x P/E is being applied to a profit base that has grown steadily, which bulls argue does not require a premium peer level P/E to look reasonable.
- A 2.86% dividend yield, combined with the gap between the US$51.79 share price and the US$70.79 DCF fair value, is often cited by bullish investors as a reason to pay attention to both income and potential valuation re rating, even with forecasts calling for earnings to decline by about 1.3% per year over the next three years.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for S&T Bancorp on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
If the mixed signals on S&T Bancorp have raised questions, use that as your cue to move quickly, examine the underlying data, and shape your own view by weighing the stock's 3 key rewards and 1 important warning sign.
See What Else Is Out There
S&T Bancorp pairs a solid margin profile with trailing twelve month earnings growth of 7.4%, yet still trades on a P/E below peer and DCF reference points. This keeps questions about upside potential open.
If that gap between S&T Bancorp's current valuation and its reference metrics gives you pause, you can compare it with companies screened for stronger pricing versus fundamentals using the 49 high quality undervalued stocks.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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