Company: STBA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000719220-25-000013
Chunk: 95

Company: S&T BANCORP INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 95
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 risk factors within our qualitative reserve. These decreases were offset by the addition of a $4.2 specific reserve for loans individually evaluated related to a C&I relationship that was downgraded to nonaccrual during the three months ended December 31, 2024.

Federal Home Loan Bank and Other Restricted Stock

At December 31, 2024, we held FHLB of Pittsburgh stock of $15.2 million compared to $24.0 million at December 31, 2023. This investment is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. We hold FHLB stock because we are a member of the FHLB of Pittsburgh. The FHLB requires members to purchase and hold a specified level of FHLB stock based upon the members’ asset values, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. We reviewed and evaluated the FHLB capital stock for impairment at December 31, 2024. The FHLB exceeds all required capital ratios. Additionally, we considered that the FHLB has been paying dividends and actively redeeming stock throughout 2024 and 2023. Accordingly, we believe sufficient evidence exists to conclude that no impairment existed at December 31, 2024.

Deposits

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

December 31, 2024December 31, 2023(dollars in thousands)Amount% of DepositsAmount% of Deposits$ Change% ChangePersonal$4,533,149 58.2 %$4,244,386 56.4 %$288,763 6.8 %Business2,679,191 34.4 %2,565,853 34.1 %113,338 4.4 %