Company: STBA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000719220-25-000013
Chunk: 80

Company: S&T BANCORP INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 80
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 adoption of PAM on January 1, 2024. As a result of adopting PAM, amortization expense related to tax credit equity investments of $4.3 million is included in income tax expense for 2024 compared to $2.1 million included in other noninterest expense in 2023.

The effective tax rate, which is total tax expense as a percentage of income before taxes, increased to 20.4 percent in 2024 compared to 19.0 percent in 2023. The increase in the effective tax rate in 2024 compared to 2023 was primarily due to the adoption of PAM. We have generated an annual effective tax rate that is less than the statutory rate of 21 percent due to benefits resulting from tax-exempt interest, excludable dividend income, tax-exempt income on Bank Owned Life Insurance, or BOLI, and tax benefits associated with Low Income Housing Tax Credits, or LIHTC, which is partially offset by PAM. 

Financial Condition as of December 31, 2024

Total assets were $9.7 billion at December 31, 2024 compared to $9.6 billion at December 31, 2023. Total portfolio loans increased $89.6 million, or 1.2 percent, to $7.7 billion at December 31, 2024 compared to December 31, 2023. Loan growth was slow in 2024 due to higher interest rates and uncertainty in the macro environment and elevated loan-payoffs. Loan growth improved in the fourth quarter of 2024, with expanding loan pipelines positioning us for better results in 2025. 

Securities remained unchanged at $1.0 billion at December 31, 2024 and December 31, 2023. The bond portfolio was in a net unrealized loss position of $71.7 million at December 31, 2024 compared to a net unrealized loss position of $82.0 million at December 31, 2023. The improvement in the net unrealized loss position of $10.3 million was primarily due to realized losses of $7.9 million during 2024 as a result of repositioning $144.3 million of our securities portfolio into longer-duration, higher yielding securities.

Customer deposit growth continues to be strong, allowing for a reduction in higher costing borrowings and brokered deposits. Total deposits increased $261.3 million with customer deposits increasing $411.7 million