Company: STBA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000719220-25-000053
Chunk: 95

Company: S&T BANCORP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 95
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094 (3,930)(2,836)783 (6,372)(5,589)Change in Net Interest Income$1,053 $1,833 $2,886 $1,843 $814 $2,657 (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.

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Table of ContentsS&T BANCORP, INC. AND SUBSIDIARIESItem 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(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.

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, loan risk ratings, net loan charge-offs and recoveries, the macro environment and our CECL forecast. 

The provision for credit losses increased $1.6 million to $2.0 million for the three months ended June 30, 2025 compared to $0.4 million for the same period in 2024. The increase was primarily due to a higher provision for unfunded loan commitments and an increase in loan charge-offs which was partially offset by a lower level of ACL due to improved asset quality. The provision for credit losses decreased $4.1 million to a negative $1.1 million for the six months ended June 30, 2025 compared to $3.0 million for the same period in 2024. The decrease was due to a lower level of ACL related to improved asset quality, including a $4.2 million reduction in specific reserves for individually evaluated loans during the three months ended March 31, 2025, and a decrease in loan charge-offs. 

Net loan charge-offs were $1.2 million and $1.1 million for the three and six months ended June 30, 2025 compared to net loan recoveries of $0.4 million and net loan charge-offs of $6.2 million for the same periods in 2024. 

Refer to the "Allowance for Credit Losses" section of this MD&A