Company: STBA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000719220-25-000013
Chunk: 87

Company: S&T BANCORP INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 87
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 compared to $36.0 million, or 0.5 percent, at December 31, 2023.

We lend primarily in Pennsylvania and the contiguous states of Ohio, New York, West Virginia, New Jersey, Delaware and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in these states resulting in a geographic concentration. We believe our knowledge of these markets outweighs the geographic concentration risk. Our operating knowledge at the local and regional level is derived from our front-line connection to the customer and our understanding of their businesses. We also have a portfolio management group that utilizes multiple data sources including 

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Table of ContentsS&T BANCORP, INC. AND SUBSIDIARIESItem 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

customer information, publicly available data and subscription service data to assess risk on an on-going basis and strong overall risk management practices which help us understand and evaluate concentration risk. Our CRE and commercial construction portfolios have exposure outside this geography of 3.9 percent of the combined portfolios and 1.9 percent of total portfolio loans at December 31, 2024 and 2023.

Total portfolio loans increased $89.6 million, or 1.2 percent, to $7.7 billion at December 31, 2024 compared to $7.7 billion at December 31, 2023. As of December 31, 2024, 62.0 percent of our total loans were variable rate loans and 38.0 percent were fixed rate loans compared to 65.0 percent variable rate loans and 35.0 percent fixed rate loans at December 31, 2023. 

Commercial loans decreased $81.7 million to $5.3 billion at December 31, 2024, related to decreases of $101.7 million in C&I and $10.4 million in commercial construction offset by an increase of $30.4 million in CRE compared to $5.4 billion at December 31, 2023. The decrease in commercial loans was primarily driven by lower loan demand due to higher interest rates and uncertainty in the macro environment and elevated loan pay-offs which in part were strategic exits related to our criticized and classified loans. Loan activity improved in the fourth quarter of 2024, with expanding loan pipelines positioning us for better growth in 2025.

 Consumer loans represented 31.8 percent of our total portfolio loans