Company: STBA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000719220-25-000053
Chunk: 86

Company: S&T BANCORP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 86
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The provision for credit losses increased $1.6 million to $2.0 million for the three months ended June 30, 2025 compared to $0.4 million for the same period in 2024. The increase was primarily due to a higher provision for unfunded loan commitments and an increase in loan charge-offs which was partially offset by a lower level of allowance for credit losses, or ACL, due to improved asset quality. The provision for credit losses decreased $4.1 million to a negative $1.1 million for the six months ended June 30, 2025 compared to $3.0 million for the same period in 2024. The decrease was due to a lower level of ACL related to improved asset quality, including a $4.2 million reduction in specific reserves for individually evaluated loans during the three months ended March 31, 2025, and a decrease in loan charge-offs. 

Noninterest income increased $0.2 million for the three months ended June 30, 2025 and decreased $2.2 million for the six months ended June 30, 2025 compared to the same periods in 2024. The increase of $0.2 million related to no security losses for the three months ended June 30, 2025 compared to $3.2 million of losses in the same period in the prior year offset by a $2.9 million decline in other noninterest income primarily related to a fair value adjustment of $3.2 million from the Visa exchange offer for Visa Class B-1 common stock in the three months ended June 30, 2024. The $2.2 million decrease in noninterest income for the six months ended June 30, 2025 was primarily related to the fair value adjustment of $3.2 million for the Visa exchange offer offset by lower losses on securities in the six months ended June 30, 2025. 

Noninterest expense increased $4.5 million, or 8.41 percent, and $5.1 million, or 4.70 percent, for the three and six months ended June 30, 2025 compared to the same periods in 2024. The most significant change in noninterest expense related to salaries and employee benefits which increased $2.5 million and $2.9 million for the three and six months ended June 30, 2025 compared to the same periods in 2024 due to annual merit increases, higher incentives and increased medical