Company: STBA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000719220-25-000091
Chunk: 103

Company: S&T BANCORP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table presents key ACL ratios for the periods presented:

September 30, 2025December 31, 2024Ratio of net charge-offs to average loans outstanding(1)0.06 %0.11 %Allowance for credit losses as a percentage of total portfolio loans1.23 %1.31 %Allowance for credit losses to nonaccrual loans198 %363 %

(1) Year-to-date net charge-offs annualized

The ACL decreased $3.3 million to $98.2 million, or 1.23 percent of total portfolio loans, at September 30, 2025 compared to $101.5 million, or 1.31 percent of total portfolio loans, at December 31, 2024. The decrease in the ACL was primarily due to a reduction of $1.5 million in specific reserves for loans individually evaluated and a lower level of qualitative reserve and C&I segment specific reserve. 

Substandard loans increased $24.6 million to $134.4 million at September 30, 2025 compared to $109.8 million at December 31, 2024 and remain at a manageable level. The increase in the amount of substandard loans was primarily due to the addition of three commercial relationships totaling $28.4 million that were downgraded to substandard during the three months ended September 30, 2025. Special mention loans decreased $9.9 million to $89.0 million at September 30, 2025 compared to $98.9 million at December 31, 2024.

Nonperforming assets, or NPAs, consist of nonaccrual loans and OREO. The following represents NPAs as of the dates presented:

(dollars in thousands)September 30, 2025December 31, 2024$ ChangeNonaccrual Loans Commercial real estate$27,964 $4,173 $23,791 Commercial and industrial9,826 12,570 (2,744)Commercial construction869 — 869 Consumer real estate10,795 10,964 (169)Other Consumer164 230 (66)Total Nonaccrual Loans49,618 27,937 21,681 OREO8 8 — Total Nonperforming Assets$49,626