Company: STBA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000719220-25-000091
Chunk: 28

Company: S&T BANCORP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 28
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 Consumer real estate223 — — 107 330 Total$27,176 $7,475 $— $107 $34,758 A payment default is defined as a loan having a payment past due 90 days or more. There were three payment defaults in the amount of $0.2 million during the three months ended September 30, 2025 and five payment defaults in the amount of $3.7 million during the nine months ended September 30, 2025 of which $3.5 million was brought current as of September 30, 2025 compared to one payment default for $0.1 million in the same periods in 2024. Additionally, we had 11 commitments to lend an additional $0.2 million to borrowers experiencing financial difficulty that had a modification during the twelve months ended September 30, 2025 and four commitments to lend an additional $0.6 million to borrowers experiencing financial difficulty that had a modification during the same period in 2024.The effect of modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, or ACL, because of the measurement methodologies used to estimate the ACL, therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification.

Allowance for Credit LossesWe maintain an ACL, at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer. The following are key risks within each portfolio segment:CRE—Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also