Company: STBA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000719220-25-000053
Chunk: 76

Company: S&T BANCORP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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.2 8.4 (32.3)3001.8 6.1 (8.7)1.9 5.8 (24.1)2001.2 4.4 (4.3)0.8 3.7 (15.4)1000.7 2.5 (1.1)(0.1)1.7 (7.2)-100(1.9)(4.0)(2.4)(3.4)(5.2)3.0 -200(4.4)(9.3)(8.6)(6.2)(10.3)3.5 -300(7.6)(15.6)(19.2)(9.2)(16.2)0.2 -400(10.2)(19.7)(37.1)(12.9)(22.7)(7.9)

The results from the rate shock analyses on net interest income are generally consistent with having an asset sensitive balance sheet. Having an asset sensitive balance sheet means more assets than liabilities will reprice during the measured time frames. The implications of an asset sensitive balance sheet will differ depending upon the change in market interest rates. For example, with an asset sensitive balance sheet in a declining interest rate environment, more assets than liabilities will decrease in rate. This situation could result in a decrease in net interest income and operating income. Conversely, with an asset sensitive balance sheet in a rising interest rate environment, more assets than liabilities will increase in rate. This situation could result in an increase in net interest income and operating income.

Our rate shock analyses remain relatively unchanged in the percentage change in pretax net interest income in the rates up scenarios when comparing June 30, 2025 to December 31, 2024. The percentage change in pretax net interest income in the rates down scenarios has improved when comparing June 30, 2025 to December 31, 2024 primarily due to updates of our deposit beta and loan prepayment assumptions. Our EVE analyses show an improvement in the rates up scenarios and a decline in the rates down scenarios when comparing June 30, 2025 to December 31, 2024 primarily due to updated deposit retention assumptions.

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Table of ContentsS&T BANCORP, INC. AND SUBSIDIARIES

In addition to rate shocks and EVE analyses, we perform a market risk stress test at least annually.