Company: STBA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000719220-25-000028
Chunk: 88

Company: S&T BANCORP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 88
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ANCIAL CONDITION AND RESULTS OF OPERATIONS

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 decreased $5.6 million to negative $3.0 million for the three months ended March 31, 2025 compared to $2.6 million for the same period in 2024. The decrease in the provision for credit losses was due to a lower level of ACL and a decrease in net loan charge-offs. The lower level of ACL was related to a reduction in specific reserves of $4.2 million for loans individually evaluated due to the partial pay-off of a $10.7 million C&I relationship that went nonperforming during the three months ended December 31, 2024. The provision for credit losses included a negative $0.5 million for the reserve for unfunded commitments for the three months ended March 31, 2025 compared to a negative $0.8 million for the same period in 2024.

Net loan recoveries were $0.0 million for the three months ended March 31, 2025 compared to net loan charge-offs of $6.6 million for the same period in 2024. Offsetting gross loan charge-offs of $0.9 million during the three months ended March 31, 2025 were $0.9 million in recoveries.

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

Noninterest Income Three Months Ended March 31,(dollars in thousands)20252024$ Change% ChangeNet (loss) gain on sale of securities$(2,295)$3 $(2,298)NMDebit and credit card4,188 4,235 (47)(1.1)%Service charges on deposit accounts3,962 3,828 134 3.5 %Wealth management3,084 3,042 42 1.4 %Other noninterest income1,490 1,722 (232)(13.5)%Total Noninterest Income$10,429 $12,830 $(2,401)(18.7)%NM - not meaningful

Noninterest income decreased $2.4 million to $10.4 million for the three