Company: STBA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000719220-25-000013
Chunk: 78

Company: S&T BANCORP INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 78
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 losses was primarily due to a lower level of ACL and a decrease in net loan charge-offs. The lower level of ACL was mainly related to improved asset quality, including a decrease in criticized and classified loans of $96.2 million, or 31.1 percent, during 2024. Additionally, the provision for credit losses for the reserve for unfunded commitments was a negative $1.7 million for 2024 compared to a negative $1.4 million for 2023. The decrease in the reserve for unfunded commitments for 2024 was primarily due to lower loss rates and fewer unused commitments in the construction portfolio.

Net loan charge-offs for 2024 were $8.3 million, or 0.11 percent of average loans, compared to $13.2 million, or 0.18 percent of average loans, for 2023. Offsetting loan charge-offs of $24.6 million during 2023 was a $9.3 million recovery related to a 2020 customer fraud. Refer to the "Credit Quality" section of this MD&A for further details.

Noninterest Income Years Ended December 31,(dollars in thousands)20242023$ Change% ChangeNet loss on sale of securities$(7,938)$— $(7,938)— %Debit and credit card18,263 18,248 15 0.1 %Service charges on deposit accounts16,273 16,193 80 0.5 %Wealth management12,259 12,186 73 0.6 %Other noninterest income10,226 10,993 (767)(7.0)%Total Noninterest Income$49,083 $57,620 $(8,537)(14.8)%

Noninterest income decreased $8.5 million to $49.1 million compared to $57.6 million in 2023. The decrease was mainly related to $7.9 million of realized losses from the repositioning of securities into longer duration, higher-yielding securities. Other noninterest income decreased $0.8 million primarily related to a gain of $3.9 million on the sale of OREO in 2023 compared to a $3.5 million gain from the exchange offer for Visa Class B-1 common stock in 2024.

Noninterest ExpenseYears Ended December 31,(dollars in thousands)20242023$ Change% ChangeSalaries and employee benefits$121,990