S&T Bancorp (NASDAQ:STBA) signaled confidence in its capital position, authorizing a new $100 million share repurchase program as the regional lender capped off a year of significant margin expansion.
The Indiana, Pennsylvania-based bank reported fourth-quarter net income of $34 million, or $0.89 per diluted share, narrowly edging out analyst estimates of $0.88.
For the full year 2025, the bank earned $134.2 million ($3.49 per share), a modest increase over the $131.3 million recorded in 2024.
A key driver of the bank’s performance was the continued widening of its net interest margin (NIM), which grew to 3.90% for the year, an 8-basis-point increase over 2024.
In the fourth quarter alone, NIM reached 3.99% as the bank benefited from disciplined deposit pricing and a $329 million expansion of its loan portfolio over the course of the year.
However, the results also reflected broader industry trends of normalizing credit quality.
Nonperforming assets (NPAs) rose to $55.6 million, or 0.69% of total loans plus real estate owned, up from lower levels earlier in the year.
The bank also recorded net charge-offs of $14.5 million for 2025, while maintaining an allowance for credit losses of $93.2 million, or 1.15% of total loans.
Despite the shift in credit metrics, S&T’s board moved aggressively on shareholder returns.
The new $100 million buyback authorization, effective Jan. 26, 2026, replaces a previous program and underscores the bank's "robust capital position," according to CEO Chris McComish.
The bank also remains a consistent dividend payer, having recently raised its quarterly payout to $0.36 per share.
Elsewhere, total deposits rose $175.7 million for the year, largely driven by customer deposit growth, allowing the bank to maintain a stable funding base even as it grew its commercial and consumer lending arms.