Company: STBA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000719220-25-000013
Chunk: 94

Company: S&T BANCORP INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 94
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rual loans363 %471 %532 %

The following is the ACL balance by portfolio segment as of December 31:20242023(dollars in thousands)Amount% ofTotalAmount% ofTotalCommercial real estate$30,254 29.8 %$37,886 35.1 %Commercial and industrial37,084 36.5 %34,538 32.0 %Commercial construction4,893 4.8 %5,382 5.0 %Business banking10,681 10.6 %12,858 11.9 %Consumer real estate15,776 15.5 %14,663 13.6 %Other consumer2,806 2.8 %2,639 2.4 %Total$101,494 100.0 %$107,966 100.0 %

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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

Significant to our ACL is a higher concentration of commercial loans. The ability of borrowers to repay commercial loans is dependent upon the success of their business and general economic conditions. Due to the greater potential for loss within our commercial portfolio, we monitor the commercial 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 rated special mention or substandard have potential or well-defined weaknesses not generally found in high quality, performing loans, and require attention from management to limit loss.

The ACL was $101.5 million, or 1.31 percent of total portfolio loans, at December 31, 2024 compared to $108.0 million, or 1.41 percent of total portfolio loans, at December 31, 2023. The decrease in the ACL of $6.5 million is related to improvement in our overall asset quality resulting in a $7.7 million decrease in our quantitative reserve and a $2.9 million decrease in our qualitative reserve. The decrease in the quantitative reserve was primarily due to a $96.2 million, or 31.1 percent, reduction in our criticized and classified loans and the decrease in the qualitative reserve was primarily related to improvement in our healthcare portfolio along with improvement in various other