Company: STBA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000719220-25-000091
Chunk: 95

Company: S&T BANCORP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 95
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741)(6,664)(1,132)(7,796)Other interest-bearing liabilities(175)(70)(245)(632)(265)(897)Change in Interest Paid on Interest-bearing Liabilities909 (5,524)(4,615)1,715 (11,919)(10,204)Change in Net Interest Income$1,841 $2,854 $4,695 $3,675 $3,678 $7,353 (1) Tax-exempt income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.

(2) Taxable investment income is adjusted for the dividend-received deduction for equity securities.

(3) Nonaccruing loans are included in the daily average loan amounts outstanding.

(4) Changes to rate/volume are allocated to both rate and volume on a proportionate dollar basis.

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 increased $3.2 million to $2.8 million for the three months ended September 30, 2025 compared to a negative $0.4 million for the same period in 2024. The increase was primarily due to an increase in specific reserves for loans individually evaluated and an increase in the reserve for unfunded loan commitments due to higher unused commitments and loss rates in the construction portfolio. The provision for credit losses decreased $0.9 million to $1.7 million for the nine months ended September 30, 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 related to improved asset quality and lower net charge-offs, which were partially offset by an increase in the reserve for unfunded loan commitments related to an increase in unused commitments and loss rates in the construction portfolio.

Net loan charge-offs were $2.4 million and $3.5 million for the three and nine months ended September 30, 2025 compared to net loan charge-offs of $2.1 million and $8.3 million for the same periods in 2024. 

Refer to the "Allowance for Credit Losses" section of this