S&T Bancorp STBA Form 10-Q filing Q2 FY2026

Item 1. Condensed Consolidated Financial Statements

S&T BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

• (Unaudited)
• (Audited)_

See Notes to Condensed Consolidated Financial Statements

See Notes to Condensed Consolidated Financial Statements

S&T BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

S&T BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

See Notes to Condensed Consolidated Financial Statements

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. BASIS OF PRESENTATION

Principles of Consolidation

The interim Condensed Consolidated Financial Statements include the accounts of S&T Bancorp, Inc., or S&T, and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Investments of 20 percent to 50 percent of the outstanding common stock of investees are accounted for using the equity method of accounting.

Basis of Presentation

The accompanying unaudited interim Condensed Consolidated Financial Statements of S&T have been prepared in accordance with generally accepted accounting principles, or GAAP, in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025, or 2025 Form 10-K, filed with the Securities and Exchange Commission, or SEC. In the opinion of management, the accompanying interim financial information reflects all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position and the results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period.

Reclassification

Amounts in prior period financial statements and footnotes are reclassified whenever necessary to conform to the current period presentation. Reclassifications had no effect on our condensed consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Segments

We have one operating segment, Community Banking, based upon our current reporting structure at the consolidated level. The chief operating decision maker, or CODM, uses consolidated net income when allocating resources and making operating decisions. The accounting policies used to measure the profit and loss of the Community Banking segment are the same as those described in the summary of significant accounting policies in our 2025 Form 10-K. The CODM does not review segment revenue or expense information at a lower level than what is included in our Consolidated Statements of Net Income. Expenses included within other expenses in the Condensed Consolidated Statements of Comprehensive Income include loan related expenses, travel and entertainment, insurance expenses and contributions.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Recently Adopted Accounting Standards Updates, or ASU, or Updated

There were no recently adopted accounting standards updates in the second quarter of 2026.

Recently Issued Accounting Standards Not Yet Adopted

Income Statement (Subtopic 220-40)—Reporting Comprehensive Income—Expense Disaggregation Disclosures

In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40)—Reporting Comprehensive Income—Expense Disaggregation Disclosures to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. This ASU will not impact our consolidated financial statements and we are currently evaluating the impact of the new disclosure requirements.

Interim Reporting (Topic 270)—Narrow-Scope Improvements

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270)—Narrow-Scope Improvements to improve the navigability of the required interim disclosures and clarify when the guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. The amendments add to Topic 270 a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this update are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods beginning after December 15, 2028. Early adoption is permitted. This ASU is not expected to have a material impact on disclosures.

NOTE 2. EARNINGS PER SHARE

The treasury stock method was used to determine earnings per share for the three and six months ended June 30, 2026 and 2025. The following table reconciles the numerators and denominators of basic and diluted EPS calculations for the periods presented:

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3. FAIR VALUE MEASUREMENTS

We use fair value measurements when recording and disclosing certain financial assets and liabilities. Debt securities, equity securities, securities held in a deferred compensation plan and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other financial instruments at fair value on a nonrecurring basis, such as loans held for sale, loans individually evaluated, other real estate owned, or OREO, and other repossessed assets, mortgage servicing rights, or MSRs, and certain other assets.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability which are developed based on market data that we have obtained from independent sources. Unobservable inputs reflect our estimates of assumptions that market participants would use in pricing an asset or liability which are developed based on the best information available in the circumstances.

The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows.

Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets.

Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data.

Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

There have been no changes in our valuation methodologies during the three and six months ended June 30, 2026. Refer to Note 1. Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in our 2025 Form 10-K for more information on the valuation methodologies that we use for financial instruments recorded at fair value on a recurring or nonrecurring basis.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at the dates presented:

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Assets Recorded at Fair Value on a Nonrecurring Basis

We may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities are recorded at the lower of cost or fair value in our consolidated financial statements and are remeasured only when events or circumstances indicate impairment. At June 30, 2026, individually evaluated loans of $8.6 million were measured at fair value on a nonrecurring basis and classified as Level 3. At December 31, 2025 individually evaluated loans of $10.6 million were classified as Level 3 and $5.3 million were classified as Level 2. There were no liabilities measured at fair value on a nonrecurring basis at both June 30, 2026 and December 31, 2025.

Significant unobservable inputs used in the fair value measurements of Level 3 assets on a nonrecurring basis at June 30, 2026 and December 31, 2025 were as follows:

Fair Value of Financial Instruments

The following tables present the carrying values and fair values of our financial instruments at the dates presented:

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4. SECURITIES

The following table presents the fair values of our securities portfolio at the dates presented:

The following table presents the amortized cost and fair value of available-for-sale debt securities at the dates presented:

(1) Excludes interest receivable of $3.4 million at June 30, 2026 and $3.3 million at December 31, 2025. Interest receivable is included in other assets in the Consolidated Balance Sheets.

(2) Collateralized mortgage obligations and residential mortgage-backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the fair value and the age of gross unrealized losses on available-for-sale debt securities by investment category at the dates presented:

We evaluate securities with unrealized losses quarterly to determine if the decline in fair value has resulted from credit impairment or other factors. We do not believe any individual unrealized loss as of June 30, 2026 represents a credit impairment. The unrealized losses on debt securities were attributable to changes in interest rates and not related to the credit quality of the issuers. All debt securities were determined to be investment grade and paying principal and interest according to the contractual terms of the security. As of June 30, 2026, we do not intend to sell, and it is more likely than not that we will not be required to sell, the securities in an unrealized loss position before recovery of their amortized cost.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table presents net unrealized gains and losses, net of tax, on available-for-sale debt securities included in accumulated other comprehensive loss, for the periods presented:

The amortized cost and fair value of available-for-sale debt securities at June 30, 2026 by contractual maturity are included in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

Debt securities are pledged in order to meet various regulatory and legal requirements. Restricted pledged securities had a carrying value of $40.4 million at June 30, 2026 and $38.3 million at December 31, 2025. Unrestricted pledged securities had a carrying value of $204.5 million at June 30, 2026 and $202.0 million at December 31, 2025. Any sales of or changes to the pledged status of restricted pledged securities requires approval of the beneficiary. Approval is not required in order to sell or make changes to the pledged status for unrestricted pledged securities.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans and Loans Held for Sale

Loans are presented net of unearned income. Unearned income consisted of net deferred loan fees and costs of $3.6 million at June 30, 2026 and $4.8 million at December 31, 2025 and a discount related to purchase accounting fair value adjustments of $1.7 million at June 30, 2026 and $2.0 million at December 31, 2025.

The following table summarizes the composition of our loan portfolio at the dates presented:

(1) Excludes interest receivable of $32.4 million at June 30, 2026 and $33.4 million at December 31, 2025. Interest receivable is included in other assets in the Consolidated Balance Sheets.

Modifications to Borrowers Experiencing Financial Difficulty

The following tables present the amortized cost of loans to borrowers experiencing financial difficulty by portfolio segment and type of modification during the periods presented:

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables describe the effect of loan modifications made to borrowers experiencing financial difficulty during the periods presented:

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following tables present an aging analysis since the date of modification for loans to borrowers experiencing financial difficulty that were modified in the last 12 months as of the dates presented:

A payment default is defined as a loan having a payment past due 90 days or more. There were two payment defaults on previously modified loans to borrowers experiencing financial difficulty in the amount of $10.3 million during the three months ended June 30, 2026 and three payment defaults in the amount of $13.7 million during the six months ended June 30, 2026 compared to one payment default in the amount of $0.1 million during the three months ended June 30, 2025 and two payment defaults in the amount of $3.9 million during the six months ended June 30, 2025. Additionally, we had twelve commitments to lend an additional $1.7 million to borrowers experiencing financial difficulty that had a modification during the twelve months ended June 30, 2026 and eleven commitments to lend an additional $0.1 million to borrowers experiencing financial difficulty that had a modification during the same period in 2025.

The effect of modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, or ACL, because of the measurement methodologies used to estimate the ACL, therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Allowance for Credit Losses

We maintain an ACL, at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer.

The following are key risks within each portfolio segment:

CRE—Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied.

C&I—Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.

Commercial Construction—Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While these loans are generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.

Business Banking—Commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. The business banking portfolio is monitored by utilizing a standard and closely managed process focusing on behavioral and performance criteria. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and business.

Consumer Real Estate—Loans secured by first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt.

Other Consumer—Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

Management monitors various credit quality indicators for the commercial, business banking and consumer loan portfolios, including changes in risk ratings, nonperforming status and delinquency on a monthly basis.

We monitor the commercial and business banking loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention or substandard.

Our risk ratings are consistent with regulatory guidance and are as follows:

Pass—The loan is currently performing and is of high quality.

Special Mention—A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Substandard—A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful—Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.The following tables present loan balances by year of origination and internally

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

assigned risk rating for our portfolio segments at the dates presented:

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the aging analysis of past due loans segregated by class of loans at the dates presented:

The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented:

(1) Represents only cash payments received and applied to interest on nonaccrual loans.

(1) Represents only cash payments received and applied to interest on nonaccrual loans.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present loans that are individually evaluated and collateral-dependent at the dates presented:

The following tables present activity in the ACL for the periods presented:

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present activity in the ACL for the periods presented:

NOTE 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Derivatives Designated as Hedging Instruments

The following table indicates the amounts representing the value of derivative assets and derivative liabilities at the dates presented:

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table indicates the gross amounts of interest rate swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at the dates presented:

Amounts reported in OCI related to derivatives that are designated as hedging instruments are reclassified to interest income as interest payments are received on variable rate assets. We estimate that an additional $1.5 million will be reclassified as a decrease to interest income in the next 12 months. Our current interest rate swap agreements have three to five year terms with maturity dates extending into 2027.

The following table indicates the gain (loss) recognized in income on derivatives not designated as hedging instruments for the periods presented:

NOTE 7. TAX CREDIT EQUITY INVESTMENTS

We invest in low income housing tax credit, or LIHTC, and historic tax credit, or HTC, partnerships as part of our responsibilities under the Community Reinvestment Act and due to their favorable federal income tax benefits. As a limited

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

partner in these operating partnerships, we receive tax credits and tax deductions for losses incurred by the underlying properties. No impairment losses were recognized for the three and six months ended June 30, 2026 and 2025.

The following table presents the balances included in the Consolidated Balance Sheets at the dates presented:

The following table summarizes the amortization expense and tax credits included in income tax expense in the Condensed Consolidated Statements of Comprehensive Income for the periods presented:

NOTE 8. COMMITMENTS AND CONTINGENCIES

Commitments

In the normal course of business, we offer off-balance sheet credit arrangements to enable our customers to meet their financing objectives. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated financial statements. Our exposure to credit loss, in the event the customer does not satisfy the terms of the agreement, equals the contractual amount of the obligation less the value of any collateral. We apply the same credit policies in making commitments and standby letters of credit that are used for the underwriting of loans to customers. Commitments generally have fixed expiration dates, annual renewals or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The following table sets forth our commitments and letters of credit at the dates presented:

Litigation

In the normal course of business, we are subject to various legal and administrative proceedings and claims. While any type of litigation contains a level of uncertainty, we believe that the outcome of such proceedings or claims pending will not have a material adverse effect on our consolidated financial position or results of operations.

S&T BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9. OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the change in components of other comprehensive income (loss) for the periods presented, net of tax effects:

NOTE 10. SHARE REPURCHASE PLAN

On January 21, 2026, the Board of Directors of S&T Bancorp, Inc. authorized a $100.0 million share repurchase program. The repurchase authorization permitted S&T to repurchase shares of S&T's common stock from time to time through a combination of open market and privately negotiated repurchases up to the authorized $100.0 million aggregate value of S&T's common stock. At June 30, 2026, there was $2.8 million in capacity remaining under the plan.

The following table presents common stock repurchase activity for the periods presented:

NOTE 11. SUBSEQUENT EVENTS

On July 22, 2026, the Board of Directors of S&T Bancorp, Inc. authorized a new share repurchase program. The new program replaced the existing share repurchase program effective July 27, 2026, and is set to expire August 31, 2027. The remaining capacity of $2.8 million under the existing share repurchase program was terminated. The new program authorizes the share repurchase of S&T's common stock from time to time through a combination of open market and privately negotiated transactions up to the authorized $100 million aggregate value of S&T's common stock. The specific timing, price and quantity of repurchases will be at the discretion of S&T and will depend on a variety of factors, including general market conditions, the trading price of the common stock, applicable securities laws and other legal and contractual requirements, as well as S&T’s financial performance. The repurchase program does not obligate S&T to repurchase any particular number of shares and may be extended, modified or discontinued at any time.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, represents an overview of our consolidated results of operations and financial condition and highlights material changes in our financial condition and results of operations for the three and six months ended June 30, 2026 and 2025. Our MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and Notes. The results of operations reported in the accompanying Condensed Consolidated Financial Statements are not necessarily indicative of results to be expected in future periods.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Critical Accounting Policies and Estimates

We view critical accounting policies to be those which are highly dependent on subjective or complex estimates, assumptions and judgments and where changes in those estimates and assumptions could have a significant impact on the Condensed Consolidated Financial Statements. Further, we view critical accounting estimates as those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Our critical accounting policies and estimates as of June 30, 2026 remained unchanged from the disclosures presented in our 2025 Form 10-K under Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Explanation of Use of Non-GAAP Financial Measures

In addition to traditional financial measures presented in accordance with GAAP, our management uses, and this report contains or references, certain non-GAAP financial measures, such as interest income on interest-earning assets, net interest income and net interest margin presented on a fully taxable equivalent, or FTE, basis (non-GAAP), the efficiency ratio (non-GAAP) and return on tangible shareholders' equity (non-GAAP).

We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying business, operational performance and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies.

The following table reconciles interest and dividend income and net interest income per the Condensed Consolidated Statements of Comprehensive Income to interest income, net interest income and net interest margin on an FTE basis (non-GAAP) for the periods presented. The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison combining both taxable and non-taxable sources of interest income.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Return on average tangible shareholders' equity (non-GAAP) is a key profitability metric used by management to measure financial performance. The following table provides a reconciliation of return on average tangible shareholders' equity (non-GAAP) by reconciling net income (GAAP) per the Condensed Consolidated Statements of Comprehensive Income to net income before amortization of intangibles and average shareholders' equity to average tangible shareholders' equity for the periods presented:

Executive Overview

We are a bank holding company that is headquartered in Indiana, Pennsylvania with assets of $9.9 billion at June 30, 2026. We operate in Pennsylvania and Ohio providing a full range of financial services with retail, business banking and commercial banking products and trust and brokerage services. Our common stock trades on the Nasdaq Global Select Market under the symbol “STBA.”

We earn revenue primarily from interest on loans and securities and fees charged for financial services provided to our customers. We incur expenses for the cost of deposits and other funding sources, provision for credit losses and other operating costs such as salaries and employee benefits, data processing, occupancy and tax expense.

Our purpose is building our future together through people-forward banking. We believe that all banking should be personal. We cultivate relationships rooted in trust, strengthened by going above and beyond and renewed with every interaction. Our strategic priorities for 2026 and beyond will be focused on growing our deposit franchise, improving core profitability, maintaining asset quality and ensuring a high level of talent and engagement.

Earnings Summary

The following table presents a summary of key profitability metrics for the periods presented:

We recognized net income of $36.6 million, or $1.02 per diluted share, for the three months ended June 30, 2026 compared to net income of $31.9 million, or $0.83 per diluted share, for the same period in 2025. This represents a 14.9 percent increase in net income and a 22.9 percent increase in diluted earnings per share for the three months ended June 30, 2026 compared to the same period in 2025. We recognized net income of $71.7 million, or $1.96 per diluted share, for the six months ended June 30, 2026 compared to net income of $65.3 million, or $1.69 per diluted share, for the same period in 2025. This represents a 9.8 percent increase in net income and a 16.0 percent increase in diluted earnings per share for the six months ended June 30, 2026 compared to the same period in 2025.

During the three months ended June 30, 2026, 1,074,924 shares were repurchased at an average price of $44.24 per share for $47.6 million excluding excise tax and commissions. During the six months ended June 30, 2026, 2,221,024 common shares were repurchased at an average price of $43.75 per share for $97.2 million excluding excise tax and commissions.

Net interest income increased $3.8 million, or 4.4 percent, and $8.9 million, or 5.3 percent, for the three and six months ended June 30, 2026 compared to the same periods in 2025. Net interest margin, or NIM, on an FTE basis (non-GAAP)

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

increased 11 basis points for both the three and six months ended June 30, 2026 compared to the same periods in 2025. The increases in both net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest bearing liabilities and an improvement in our overall funding mix.

The provision for credit losses decreased $0.9 million to $1.1 million for the three months ended June 30, 2026 compared to $2.0 million for the same period in 2025. The decrease was primarily related to a lower provision for unfunded loan commitments due to lower loss rates. The provision for credit losses increased $3.5 million to $2.4 million for the six months ended June 30, 2026 compared to negative $1.1 million for the same periods in 2025. The increase was related to higher net loan charge-offs and specific reserves for loans individually evaluated compared to the same period in 2025, which was partially offset by decreases in the reserve for unfunded loan commitments due to lower loss rates.

Noninterest income increased $1.4 million and $4.6 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The most significant increase for the six months ended June 30, 2026 is due to a $0.2 million net gain on the sale of securities compared to a $2.3 million loss on sale of securities that occurred in 2025.

Noninterest expense increased $0.6 million and $2.2 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The increase for the three months ended June 30, 2026 was primarily due to normal fluctuations across several expense categories and timing-related items. The increase for the six months ended June 30, 2026 was primarily due to an increase in salaries and employee benefits driven by annual merit increases and the acquisition of new talent.

Our effective tax rate was 19.4 percent and 19.9 percent for the three and six months ended June 30, 2026 compared to 20.2 percent and 20.1 percent for the three and six months ended June 30, 2025. The decrease in the effective tax rate for the three and six months ended June 30, 2026 was primarily due to an increase in tax credits and losses on low-income housing and historic partnership investments compared to the same periods in 2025.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Three and six months ended June 30, 2026 compared to Three and six months ended June 30, 2025

Net Interest Income

Our principal source of revenue is net interest income. Net interest income represents the difference between the interest and fees earned on interest-earning assets and the interest paid on interest-bearing liabilities. Net interest income is affected by changes in the average balance of interest-earning assets and interest-bearing liabilities and changes in interest rates and spreads. The level and mix of interest-earning assets and interest-bearing liabilities is managed by our Asset and Liability Committee, or ALCO, in order to mitigate interest rate and liquidity risks of the balance sheet. A variety of ALCO strategies were implemented, within prescribed ALCO risk parameters, to produce what we believe is an acceptable level of net interest income.

Average Balance Sheet and Net Interest Income Analysis (FTE) (non-GAAP)

The following tables provide information regarding the average balances, interest and rates earned on interest-earning assets and interest and rates paid on interest-bearing liabilities for the periods presented:

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(1) Tax-exempt interest income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.

(2) Taxable investment income is adjusted for the dividend-received deduction for equity securities.

(3) Nonaccruing loans are included in the daily average loan amounts outstanding.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(1) Tax-exempt interest income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.

(2) Taxable investment income is adjusted for the dividend-received deduction for equity securities.

(3) Nonaccruing loans are included in the daily average loan amounts outstanding.

Net interest income on an FTE basis (non-GAAP) increased $3.8 million, or 4.4 percent, and $8.9 million, or 5.2 percent, for the three and six months ended June 30, 2026 compared to the same periods in 2025. The net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points for both the three and six months ended June 30, 2026 compared to the same periods in 2025. These improvements in both net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest-bearing liabilities and an improvement in our overall funding mix. Customer deposit growth in 2025 and 2026 has reduced our levels of wholesale borrowings and brokered deposits.

Interest income on an FTE basis (non-GAAP) decreased $0.9 million for the three months ended June 30, 2026 and increased $0.6 million for the six months ended June 30, 2026 compared to the same periods in 2025. The decrease in interest income on an FTE basis (non-GAAP) for the three months ended June 30, 2026 was primarily driven by lower interest rates. The increase in interest income on an FTE basis (non-GAAP) for the six months ended June 30, 2026 was primarily driven by higher yields in the securities portfolio. The average yield on securities increased 12 basis points for the six months ended

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

June 30, 2026. Average loans increased $189.3 million for the six months ended June 30, 2026 compared to the same period in 2025. The increase in average loans was offset by a decrease in the average yield on loans of 14 basis points for the six months ended June 30, 2026 compared to the same period in 2025 due to lower interest rates. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 12 and 11 basis points for the three and six months ended June 30, 2026 compared to the same periods in 2025.

Interest expense decreased $4.7 million and $8.3 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The decrease in interest expense was primarily due to decreased interest rates and lower levels of wholesale funding. Average interest-bearing deposits increased $131.8 million and $190.8 million for the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to increases in certificates of deposit balances as well as increases in money market. Average borrowings decreased $54.5 million and $49.1 million for the three and six months ended June 30, 2026 compared to the same periods in 2025 primarily due to an increase in customer deposits. Overall, the cost of interest-bearing liabilities decreased 34 and 33 basis points for the three and six months ended June 30, 2026 compared to the same periods in 2025.

The following table sets forth for the periods presented a summary of the changes in interest earned and interest paid resulting from changes in volume and changes in rates:

(1) Tax-exempt income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.

(2) Taxable investment income is adjusted for the dividend-received deduction for equity securities.

(3) Nonaccruing loans are included in the daily average loan amounts outstanding.

(4) Changes to rate/volume are allocated to both rate and volume on a proportionate dollar basis.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Provision for Credit Losses

The provision for credit losses includes a provision for losses on loans and on unfunded commitments. The provision for credit losses fluctuates based on changes in loan balances, risk ratings, net loan charge-offs/recoveries, the macro environment and our Current Expected Credit Loss, or CECL, forecast.

The provision for credit losses decreased $0.9 million to $1.1 million for the three months ended June 30, 2026 compared to $2.0 million for the same period in 2025. The decrease was primarily related to a lower provision for unfunded loan commitments due to a decline in loss rates. The provision for credit losses increased $3.5 million to $2.4 million for the six months ended June 30, 2026 compared to a negative $1.1 million for the same period in 2025. The increase was related to higher net loan charge-offs and specific reserves for loans individually evaluated compared to the same periods in 2025, which was partially offset by a decrease in the reserve for unfunded loan commitments due to lower loss rates.

Net loan charge-offs were $1.0 million and $2.7 million for the three and six months ended June 30, 2026 compared to net loan charge-offs of $1.2 million and $1.1 million for the same periods in 2025. Refer to the Allowance for Credit Losses section of this MD&A for further details.

Noninterest Income

Noninterest income increased $1.4 million for the three months ended June 30, 2026 and increased $4.6 million for the six months ended June 30, 2026 compared to the same periods in 2025. Investments services and trust increased $0.5 million for the three months ended June 30, 2026 and $0.8 million for the six months ended June 30, 2026 compared to the same period in 2025 due to an increase in financial services fees. The most significant increase for the six months ended June 30, 2026 is due to a $0.2 million net gain on the sale of securities compared to a $2.3 million loss on sale of securities that occurred in 2025. The $0.2 million represents a gain of $1.9 million related to Visa Class B-2 common stock conversion which was offset by a $1.7 million loss related to the repositioning of securities into longer duration, higher yielding securities. Other noninterest income increased $0.4 million for the three months ended June 30, 2026 and $0.7 million for the six months ended June 30, 2026 primarily due to increases in partnership income and unrealized gains on equity securities.

Noninterest Expense

Noninterest expense increased $0.6 million and $2.2 million for the three and six months ended June 30, 2026 compared to the same periods in 2025. The increase of $0.6 million for the three months ended June 30, 2026 was primarily due to normal fluctuations across several expense categories and timing-related items. The increase of $2.2 million for the six months ended June 30, 2026 was primarily due to an increase in salaries and employee benefits of $1.3 million driven by annual merit increases and the acquisition of new talent.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Provision for Income Taxes

The provision for income taxes increased $0.7 million to $8.8 million for the three months ended June 30, 2026 and increased $1.4 million to $17.8 million for the six months ended June 30, 2026 compared to $8.1 million and $16.4 million for the same periods in 2025. The increase in our provision for income taxes was due to higher pretax income for the three and six months ended June 30, 2026 compared to the same periods in 2025. Our effective tax rate was 19.4 percent for the three months ended June 30, 2026 and 19.9 percent for the six months ended June 30, 2026 compared to 20.2 percent and 20.1 percent for the same period in 2025. The decrease in our effective tax rate for the three and six months ended June 30, 2026 was primarily due to an increase in tax credits and losses on low-income housing and historic partnership investments compared to the same periods in 2025.

Financial Condition at June 30, 2026

Total assets were $9.9 billion at both June 30, 2026 and December 31, 2025. Cash and due from banks increased $54.4 million related to an increase in deposits and a modest decline in loans compared to December 31, 2025. Total portfolio loans decreased $13.6 million, or 0.2 percent, to $8.1 billion at June 30, 2026 compared to December 31, 2025. The commercial loan portfolio increased $25.2 million compared to December 31, 2025 due to an increase in commercial construction and commercial and industrial loans. The consumer loan portfolio decreased $38.8 million compared to December 31, 2025 due to lower mortgage originations, increased sales of newly originated mortgage loans and higher payoffs within other consumer loans.

Securities increased $25.6 million to $1.0 billion at June 30, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily due to purchases offset by an increase in unrealized losses as a result of higher interest rates.

Total deposits increased $127.3 million, or 1.6 percent, to $8.1 billion at June 30, 2026 compared to $8.0 billion at December 31, 2025. Customer deposits increased $307.7 million, or 4.0 percent, to $8.1 billion at June 30, 2026 compared to $7.8 billion at December 31, 2025 driven by increases in core relationships and growth across nearly all deposit product categories. Growth in customer deposits enabled a reduction in money market brokered deposits which decreased $180.4 million compared to December 31, 2025.

Total borrowings increased $10.0 million to $275.3 million at June 30, 2026 compared to $265.3 million at December 31, 2025.

Total shareholders’ equity decreased by $60.1 million to $1.4 billion at June 30, 2026 compared to $1.5 billion at December 31, 2025. The decrease was primarily due to repurchases of S&T common stock of $98.3 million during the six months ended June 30, 2026, which includes excise tax and commissions of $1.1 million, other comprehensive loss of $7.6 million and dividends of $26.7 million offset by net income of $71.7 million. During the six months ended June 30, 2026, 2,221,024 common shares were repurchased at an average price of $43.75 per share.

Securities Activity

The following table summarizes our securities portfolio at the dates presented:

We invest in various securities in order to maintain a source of liquidity, to satisfy various pledging requirements, to increase net interest income and as a tool of ALCO to reposition the balance sheet for interest rate risk purposes. Securities are subject to market risks that could negatively affect the level of liquidity available to us.

The securities portfolio increased $25.6 million to $1.0 billion at June 30, 2026 compared to December 31, 2025. The increase in the debt securities portfolio was primarily related to net purchases offset by an increase in unrealized losses of $10.9 million at June 30, 2026 compared to December 31, 2025 as a result of higher interest rates.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our debt securities portfolio was in a net unrealized loss position of $45.8 million at June 30, 2026 compared to a net unrealized loss position of $34.9 million at December 31, 2025. At June 30, 2026, our debt securities portfolio had gross unrealized losses of $47.1 million offset by $1.3 million of gross unrealized gains compared to gross unrealized losses of $42.4 million offset by gross unrealized gains of $7.5 million at December 31, 2025. We recognized $1.7 million of realized losses due to the repositioning of $34.8 million of our securities portfolio into longer duration, higher-yielding securities during the three months ended June 30, 2026.

Loan Composition

The following table summarizes our loan portfolio at the dates presented:

The loan portfolio represents the most significant source of interest income for us. The risk that borrowers will be unable to pay such obligations is inherent in the loan portfolio. Other conditions, such as downturns in the borrower’s industry or the overall economic climate, can significantly impact the borrower’s ability to pay.

Total portfolio loans were $8.1 billion at both June 30, 2026 and December 31, 2025. Loan balances declined during the three months ended March 31, 2026 due to increased competition and higher CRE payoffs, but increased during the three months ended June 30, 2026 due to growth in the commercial loan portfolio. This resulted in a relatively unchanged loan balance compared to December 31, 2025.

Commercial loans, including CRE, C&I and commercial construction comprised 68.9 percent of total portfolio loans at June 30, 2026 compared to 68.5 percent at December 31, 2025. The commercial loan portfolio increased $25.2 million at June 30, 2026 compared to December 31, 2025 due to increases of $95.4 million in commercial construction and $70.7 million in C&I offset by a decrease of $140.9 million in CRE.

Consumer loans represent 31.1 percent of our total portfolio loans at June 30, 2026 compared to 31.5 percent at December 31, 2025. The consumer loan portfolio decreased $38.8 million at June 30, 2026 compared to December 31, 2025 due to a decrease of $27.6 million in consumer real estate related to lower mortgage originations and increased sales of newly originated mortgage loans and a decrease of $11.2 million in other consumer loans related to higher payoffs.

At June 30, 2026, 22 percent of our total loans were adjustable rate, 38 percent were floating rate and 40 percent were fixed rate compared to 23 percent adjustable rate loans, 37 percent floating rate loans and 40 percent fixed rate loans at December 31, 2025.

Allowance for Credit Losses

We maintain an ACL at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer. Refer to Part 1. Financial Information, Note 5. Loans and Allowance for Credit Losses for details on our portfolio segments.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table presents activity in the ACL for the period presented:

The following table presents key ACL ratios for the periods presented:

(1) Year-to-date net charge-offs annualized

The ACL was relatively unchanged at $93.3 million, or 1.16 percent of total portfolio loans, at June 30, 2026 compared to $93.2 million, or 1.15 percent of total portfolio loans, at December 31, 2025. Special mention loans increased $73.9 million to $142.9 million at June 30, 2026 compared to $69.0 million at December 31, 2025. The increase in special mention loans was primarily related to downgrades of four C&I relationships and three CRE relationships. The impact to the ACL resulting from higher special mention loans was mostly offset by a decrease in substandard loans. Substandard loans decreased $28.1 million to $97.0 million at June 30, 2026 compared to $125.1 million at December 31, 2025. The decrease in the amount of substandard loans was primarily due to loan paydowns.

Nonperforming assets, or NPAs, consist of nonaccrual loans and OREO. The following represents NPAs at the dates presented:

Our policy is to place loans in all categories in nonaccrual status when collection of interest or principal is doubtful, or generally when interest or principal payments are 90 days or more past the contractual due date. Nonaccrual loans decreased $15.4 million to $40.2 million at June 30, 2026 compared to $55.6 million at December 31, 2025. The decrease in nonaccrual loans was primarily due to paydowns in our commercial portfolio.

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Deposits

Deposits are our primary source of funds. The following table presents the composition of deposits at the dates presented:

Total deposits increased $127.3 million, or 1.6 percent, at June 30, 2026 compared to December 31, 2025. Customer deposits increased $307.7 million, or 4.0 percent, compared to December 31, 2025, driven by increases in core relationships and growth across nearly all deposit product categories. Demand deposits increased $95.9 million, or 4.4 percent, compared to December 31, 2025, representing 28 percent of total deposits at June 30, 2026. Growth in customer deposits enabled a reduction in money market brokered deposits, which decreased $180.4 million from December 31, 2025. Brokered deposits are an additional source of funds utilized by ALCO as a way to diversify funding sources, as well as manage our funding costs and structure.

As a member of the IntraFi network, we are able to offer our customers insurance coverage on interest-bearing demand, money market and certificates of deposit balances in excess of the FDIC insurance limits. IntraFi balances were $334.1 million at June 30, 2026 compared to $317.3 million at December 31, 2025.

We had total uninsured deposits of $2.9 billion, or 36.0 percent of our total deposit base, at June 30, 2026 compared to $2.7 billion, or 33.7 percent of our total deposit base, at December 31, 2025.

Borrowings

Borrowings are an additional source of funding for us. Short-term borrowings are for terms under or equal to one year and are comprised of Federal Home Loan Bank, or FHLB, Advances. Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances and finance leases. Total borrowings increased $10.0 million to $275.3 million at June 30, 2026 compared to $265.3 million at December 31, 2025.

The following table presents the composition of total borrowings at the dates presented:

Information pertaining to short-term borrowings is summarized in the table below for the six months ended June 30, 2026 and for the twelve months ended December 31, 2025:

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Information for long-term borrowings and junior subordinated debt securities is summarized in the tables below for the six months ended June 30, 2026 and for the twelve months ended December 31, 2025:

Liquidity and Capital Resources

Liquidity is defined as a financial institution’s ability to meet its cash and collateral obligations at a reasonable cost. Our primary future cash needs are centered on the ability to (i) satisfy the financial needs of depositors who may want to withdraw funds or of borrowers needing to access funds to meet their credit needs and (ii) to meet our future cash commitments under contractual obligations with third parties. In order to manage liquidity risk, our Board of Directors has delegated authority to ALCO for the formulation, implementation and oversight of liquidity risk management for S&T. ALCO’s goal is to maintain adequate levels of liquidity at a reasonable cost to meet funding needs in both a normal operating environment and for potential liquidity stress events. ALCO monitors and manages liquidity through various ratios, reviewing cash flow projections, performing stress tests and having a detailed contingency funding plan. ALCO policy guidelines define graduated risk tolerance levels. If our liquidity position moves to a level that has been defined as high risk, specific actions are required, such as increased monitoring or the development of an action plan to reduce the risk position.

Our primary funding and liquidity source is a stable customer deposit base. We believe S&T has the ability to retain existing deposits and attract new deposits, mitigating any funding dependency on other more volatile funding sources. Refer to the Financial Condition at June 30, 2026 - Deposits section of this MD&A, for additional discussion on deposits. Although deposits are the primary source of funds, we have identified various other funding sources that can be used as part of our normal funding program. Additional funding sources accessible to us include borrowing availability at the FHLB, Federal Reserve Discount Window through the Borrower-in-Custody Program, federal funds lines with other financial institutions and the brokered deposit market.

Available borrowing capacity exceeds uninsured deposits of $2.9 billion at June 30, 2026. The following table summarizes funding sources available at the dates presented:

We have contractual obligations representing required future payments on certificates of deposit, junior subordinated debt securities, short-term borrowings, long-term borrowings, operating and capital leases, funding commitments on tax credit equity investments and purchase obligations. See the Liquidity and Capital Resources section presented in our 2025 Form 10-K under Part II, Item 7- Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information on these future cash outflows. There have been no material changes to the contractual obligations previously disclosed in our 2025 Form 10-K.

An important component of our ability to effectively respond to potential liquidity stress events is maintaining a cushion of highly liquid assets. Highly liquid assets are those that can be converted to cash quickly to meet financial obligations. ALCO

S&T BANCORP, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

policy guidelines define a ratio of highly liquid assets to total assets by graduated risk tolerance levels of minimal, moderate and high. At June 30, 2026, S&T Bank had $916.2 million in highly liquid assets which consisted primarily of $146.0 million in interest-bearing deposits with banks and $765.5 million in unpledged securities. This resulted in a highly liquid assets to total assets ratio of 9.2 percent at June 30, 2026.

We continue to maintain a strong capital position with our capital ratios in excess of the well-capitalized regulatory guidelines. The following table summarizes capital amounts and ratios for S&T and S&T Bank at the dates presented:

We have filed a shelf registration statement on Form S-3 under the Securities Act of 1933, as amended, with the SEC which allows for the issuance of a variety of securities including debt and capital securities, preferred and common stock and warrants. We may use the proceeds from the sale of securities for general corporate purposes which could include investments at the holding company level, investing in, or extending credit to subsidiaries, possible acquisitions and stock repurchases. We have not issued any securities pursuant to this shelf registration statement at June 30, 2026.

S&T BANCORP, INC. AND SUBSIDIARIES