Company: STBA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000719220-25-000028
Chunk: 44

Company: S&T BANCORP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 44
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, 2024Three months ended March 31, 2025Three months ended March 31, 2024Derivatives in Cash Flow Hedging Relationships:Interest rate swap contracts - cash flow hedges$2,446 $(2,838)$(1,692)$(2,738)Total$2,446 $(2,838)$(1,692)$(2,738) Amounts reported in OCI related to derivatives that are designated as hedging instruments are reclassified to interest income as interest payments are received on variable rate assets. During the next twelve months, we estimate that an additional $5.1 million will be reclassified as a decrease to interest income. Our current interest rate swap agreements have three to five year terms with maturity dates extending into 2027.The following table indicates the gain (loss) recognized in income on derivatives not designated as hedging instruments for the periods presented:Three Months Ended March 31,(dollars in thousands)20252024Derivatives not Designated as Hedging InstrumentsInterest rate swap contracts—commercial loans$48 $34 Total Derivatives Gain$48 $34 

NOTE 7. TAX CREDIT EQUITY INVESTMENTS

As part of our responsibilities under the Community Reinvestment Act and due to their favorable federal income tax benefits, we invest in low-income-housing tax credit, or LIHTC, and historic tax credit, or HTC, partnerships. As a limited partner in these operating partnerships, we receive tax credits and tax deductions for losses incurred by the underlying properties. No impairment losses were recognized for the three months ended March 31, 2025 and March 31, 2024. The following table presents the balances included in the Consolidated Balance Sheets as of the dates presented:(dollars in thousands)March 31, 2025December 31, 2024Tax credit equity investment(1)$39,346 $40,577 Unfunded commitments(2)4,893 5,887 (1) Included in other assets in the Consolidated Balance Sheets(2) Included in other liabilities in the Consolidated Balance SheetsThe following table summarizes the amortization expense and tax credits included in income tax expense in the Condensed Consolidated Statements of Comprehensive Income for the periods presented:Three Months Ended March 31,(dollars in thousands)20252024Amortization$1,231 $768 Tax credits and other tax benefits recognized1,388 906