Company: STBA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000719220-25-000091
Chunk: 86

Company: S&T BANCORP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 86
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 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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 periods 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 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.

Noninterest income increased $1.9 million for the three months ended September 30, 2025 and decreased $0.3 million for the nine months ended September 30, 2025 compared to the same periods in 2024. The increase of $1.9 million related to no security losses for the three months ended September 30, 2025 compared to $2.2 million of losses in the same period in 2024. The $0.3 million decrease in noninterest income for the nine months ended September 30, 2025 was primarily related to the fair value adjustment of $3.2 million for the Visa exchange offer in 2024. This gain was offset by lower losses on securities in the nine months ended September 30, 2025 compared to the same period in 2024. 

Noninterest expense increased $1.0 million, or 1.83 percent, and $6.1 million, or 3.72 percent, for the three and nine months ended September 30, 2025 compared to the same periods in 2024. The most significant change in noninterest expense related to salaries and employee benefits which increased $0.9 million and $3.8 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024 due to annual merit increases, higher incentives and increased medical costs.

Our effective tax rate was 20.2 percent and 20.1 percent for the