S&T BANCORP INC
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
STBA$50.78-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0000719220-25-000028
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0000719220-25-000053
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 94 current paragraphs.
51 unchanged; 32 reworded; 9 added; 10 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 19 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
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.
Current report
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.
Current report
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 costs.
Current report
Net interest income on an FTE basis (non-GAAP) increased $2.9 million, or 3.4 percent, and $2.7 million, or 1.6 percent, for the three and six months ended June 30, 2025 compared to the same periods in 2024. NIM on an FTE basis (non-GAAP) increased 3 basis points for the three months ended June 30, 2025 and remained unchanged for the six months ended June 30, 2025 compared to the same periods in 2024. These improvements in both net interest income and NIM, on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest bearing liabilities and an improvement in our overall funding mix. Strong customer deposit growth in 2024 and 2025 has reduced our levels of borrowings and brokered deposits.
Current report
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 recognized for the three months ended June 30, 2025 compared to $3.2 million of losses recognized 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 decrease of $2.2 million 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 in 2024 offset by lower losses on securities in the six months ended June 30, 2025.
Current report
Noninterest expense increased $4.5 million and $5.1 million for the three and six months ended June 30, 2025 compared to the same periods in 2024. Salaries and employee benefits increased $2.5 million and $2.9 million for the three and six months ended June 30, 2025 primarily due to annual merit increases, higher incentives and increased medical costs. Data processing and information technology increased $0.6 million for both the three and six months ended June 30, 2025 compared to the same periods in 2024 due to additional services provided through our third party vendor. Occupancy increased $0.4 million and $0.8 million for the three and six months ended June 30, 2025 due to increased maintenance and utility costs. Other taxes increased $0.7 million and $0.3 million for the three and six months ended June 30, 2025 due to the timing of education and Neighborhood Assistance Program, or NAP, contribution credits and higher shares tax compared to the same periods in 2024. Professional services and legal expense increased $0.3 million for the three months ended June 30, 2025 due to additional consulting engagements and increased legal expenses. Other noninterest expense increased $0.9 million for the six months ended June 30, 2025 compared to the same periods in 2024 primarily related to higher loan collection, recruitment and charitable contribution expenses.
Current report
On July 4, 2025, “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” was signed into law. The Act extends many of the key provisions of the 2017 Tax Cuts and Jobs Act, or TCJA, which were previously set to expire at the end of this year, and introduces several new tax measures.We are currently evaluating income tax implications of the Act. We do not expect the Act to have a material impact on our consolidated financial statements.
Current report
Total borrowings remained unchanged at $250.3 million for June 30, 2025 and December 31, 2024.
Current report
Substandard and special mention loans remain relatively stable at June 30, 2025 following significant reductions during 2024. Substandard loans were $113.9 million at June 30, 2025 compared to $109.8 million at December 31, 2024. Special mention loans were $99.4 million at June 30, 2025 compared to $98.9 million at December 31, 2024.
Removed paragraphs (10)
Previous report
Net interest income was relatively unchanged at $83.3 million for the three months ended March 31, 2025 compared to $83.5 million for the same period in 2024. The net interest margin, or NIM, on an FTE basis (non-GAAP) was 3.81% for the three months ended March 31, 2025 compared to 3.84% for the same period in 2024. We experienced similar declines in both interest income and interest expense due to lower interest rates in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Interest expense also benefited from an improvement in our overall funding mix.
Previous report
Noninterest income decreased $2.4 million to $10.4 million for the three months ended March 31, 2025 compared to the same period in 2024. The decrease was mainly related to $2.3 million of realized losses from the repositioning of securities into longer duration, higher-yielding securities. Noninterest expense remained relatively consistent at $55.1 million for the three months ended March 31, 2025 compared to $54.5 million in the same period in 2024.
Previous report
(3) Nonaccruing loans are included in the daily average loan amounts outstanding.
Previous report
(3) Nonaccruing loans are included in the daily average loan amounts outstanding.
Previous report
Noninterest income decreased $2.4 million to $10.4 million for the three months ended March 31, 2025 compared to the same period in 2024. The decrease was mainly related to $2.3 million of realized losses from the repositioning of securities into longer duration, higher-yielding securities.
Previous report
Noninterest expense increased $0.6 million to $55.1 million for the three months ended March 31, 2025 compared to the same period in 2024. Salaries and employee benefits increased $0.3 million primarily due to annual merit increases, restricted stock expense and higher incentives. Occupancy increased $0.4 million due to increased maintenance and utility costs. Other noninterest expense increased $1.0 million primarily as a result of education and Neighborhood Assistance Program, or NAP, contributions occurring earlier in 2025 than in 2024. Offsetting these increases were decreases in our expenses for marketing of $0.3 million related to the timing of various promotions, other taxes of $0.4 million due to education and NAP contributions and professional services and legal of $0.4 million primarily due to reduced consulting and legal expenses.
Previous report
Total borrowings decreased $55.0 million, or 22.0 percent, to $195.3 million at March 31, 2025 compared to $250.3 million at December 31, 2024 primarily due to strong growth in customer deposits.
Previous report
Net loan recoveries were $0.0 million for the three months ended March 31, 2025. Refer to the "Provision for Credit Losses" section of this MD&A for further details.
Previous report
Substandard loans increased $6.9 million to $116.7 million at March 31, 2025 compared to $109.8 million at December 31, 2024. The increase in substandard loans was primarily due to the downgrade of a $10.5 million C&I relationship which was partially offset by loan payoffs. Special mention loans decreased $3.0 million to $95.9 million at March 31, 2025 compared to $98.9 million at December 31, 2024 primarily due to loan payoffs.
Previous report
We continue to maintain a strong capital position with our leverage ratio at 12.09 percent at March 31, 2025 compared to 11.98 percent at December 31,2024, both in excess of the well-capitalized regulatory guideline of 5.00 percent. We continue to be well-capitalized with a risk-based Common Equity Tier 1 ratio of 14.67 percent at March 31, 2025 compared to 14.58 percent at December 31,2024, both in excess of the well-capitalized regulatory guideline of 6.50 percent.
Reworded paragraphs (32)
Previous wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, represents an overview of our consolidated results of operations and financial condition and highlights material changes in our financial condition and results of operations for the three months ended March 31, 2025 and 2024. Our MD&A should be read in conjunction with our Consolidated Financial Statements and Notes. The results of operations reported in the accompanying Consolidated Financial Statements are not necessarily indicative of results to be expected in future periods.
Current wording
Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, represents an overview of our consolidated results of operations and financial condition and highlights material changes in our financial condition and results of operations for the three and six months ended June 30, 2025 and 2024. Our MD&A should be read in conjunction with our Consolidated Financial Statements and Notes. The results of operations reported in the accompanying Consolidated Financial Statements are not necessarily indicative of results to be expected in future periods.
Previous wording
We are a bank holding company that is headquartered in Indiana, Pennsylvania with assets of $9.7 billion at March 31, 2025. We operate in Pennsylvania and Ohio providing a full range of financial services with retail and commercial banking products, cash management services, trust and brokerage services. Our common stock trades on the NASDAQ Global Select Market under the symbol “STBA.”
Current wording
We are a bank holding company that is headquartered in Indiana, Pennsylvania with assets of $9.8 billion at June 30, 2025. We operate in Pennsylvania and Ohio providing a full range of financial services with retail and commercial banking products, cash management services, trust and brokerage services. Our common stock trades on the NASDAQ Global Select Market under the symbol “STBA.”
Previous wording
Our purpose is building a better future together through people-forward banking. We believe that all banking should be personal. We cultivate relationships rooted in trust, strengthened by going above and beyond and renewed with every interaction. Our strategic priorities for 2025 and beyond will be focused on growing our deposit franchise, core profitability, asset quality and talent and engagement.
Current wording
Our purpose is building our future together through people-forward banking. We believe that all banking should be personal. We cultivate relationships rooted in trust, strengthened by going above and beyond and renewed with every interaction. Our strategic priorities for 2025 and beyond will be focused on growing our deposit franchise, core profitability, asset quality and talent and engagement.
Previous wording
We recognized net income of $33.4 million, or $0.87 per diluted share, for the three months ended March 31, 2025 compared to net income of $31.2 million, or $0.81 per diluted share, for the same period in 2024. Net income increased by $2.2 million for the three months ended March 31, 2025 compared to the same period in 2024.
Current wording
We recognized net income of $31.9 million, or $0.83 per diluted share, for the three months ended June 30, 2025 compared to net income of $34.4 million, or $0.89 per diluted share, for the same period in 2024 and net income of $65.3 million, or $1.69 per diluted share, for the six months ended June 30, 2025 compared to net income of $65.6 million, or $1.70 per diluted share, for the same period in 2024.
Previous wording
Net interest income on an FTE basis (non-GAAP) decreased $0.2 million for the three months ended March 31, 2025 compared to the same period in 2024. The net interest margin, or NIM, on an FTE basis (non-GAAP) decreased 3 basis points to 3.81 percent for the three months ended March 31, 2025 compared to 3.84 percent in the same period in 2024. The decreases in net interest income and NIM on an FTE basis (non-GAAP) were primarily due to decreased interest rates resulting in lower interest income partially offset by lower interest expense driven by an improvement in our overall funding mix. Strong customer deposit growth in 2024 and 2025 has reduced our levels of wholesale funding.
Current wording
Net interest income increased $3.0 million, or 3.56 percent, and $2.8 million, or 1.69 percent, for the three and six months ended June 30, 2025 compared to the same periods in 2024. Net interest margin, or NIM, on an FTE basis (non-GAAP) increased 3 basis points to 3.88% for the three months ended June 30, 2025 compared to 3.85% in the same period in 2024 and remained unchanged at 3.84% for the six months ended June 30, 2025 and June 30, 2024. These improvements in both net interest income on an FTE basis (non-GAAP) and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest bearing liabilities and an improvement on our overall funding mix. Strong customer deposit growth in 2024 and 2025 has reduced our levels of wholesale funding.
Previous wording
The provision for income taxes increased $0.4 million to $8.3 million for the three months ended March 31, 2025 compared to $7.9 million for the same period in 2024. Our effective tax rate was 19.9 percent for the three months ended March 31, 2025 compared to 20.2 percent for the three months ended March 31, 2024. The decrease in our effective tax rate for the three month period ended March 31, 2025 was primarily due to an increase in low-income housing tax credits compared to the same period in 2024.
Current wording
Our effective tax rate was 20.2 percent and 20.1 percent for the three and six months ended June 30, 2025 compared to 19.8 percent and 20.0 percent for the three and six months ended June 30, 2024. The increase in the effective tax rate for the three and six months ended June 30, 2025 was primarily due to a decrease in tax-exempt interest income partially offset by an increase in low-income housing tax credits compared to the same period in 2024.
Previous wording
Three months ended March 31, 2025 Compared to Three months ended March 31, 2024
Current wording
Three and six months ended June 30, 2025 Compared to Three and six months ended June 30, 2024
Previous wording
Interest income on an FTE basis (non-GAAP) decreased $3.0 million for the three months ended March 31, 2025 compared to the same period in 2024. The decrease in interest income on an FTE basis (non-GAAP) was primarily due to lower interest rates. The average yield on loans decreased 26 basis points compared to the same period in 2024. Average loans increased $99.1 million for the three months ended March 31, 2025 compared to the same period in 2024. Partially offsetting the lower interest income on loans was higher interest income on securities due to the repositioning of $193.6 million of securities over the past four quarters into higher-yielding securities. The average yield on securities increased 78 basis points compared to the same period in 2024. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 16 basis points for the three months ended March 31, 2025 compared to the same period in 2024.
Current wording
Interest income on an FTE basis (non-GAAP) remained relatively unchanged for the three months ended June 30, 2025 and decreased $2.9 million for the six months ended June 30, 2025 compared to the same periods in 2024. The decrease in interest income on an FTE basis (non-GAAP) for the six months ended June 30, 2025 was primarily due to lower interest rates. The average yield on loan balances decreased 26 basis points for both the three and six months ended June 30, 2025 compared to the same periods in 2024. Average loan balances increased $185.0 million and $142.3 million for the three and six months ended June 30, 2025 compared to the same periods in 2024. Partially offsetting the lower interest income on loans was higher interest income on securities primarily due to the repositioning of $193.6 million of securities during 2024 and 2025. The average yield on securities increased 86 and 82 basis points for the three and six months ended June 30, 2025 compared to the same periods in 2024. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 15 and 16 basis points for the three and six months ended June 30, 2025 compared to the same periods in 2024.
Previous wording
Interest expense decreased $2.8 million for the three months ended March 31, 2025 compared to the same period in 2024. The decrease in interest expense was primarily due to lower levels of wholesale funding and decreased interest rates. Average interest-bearing deposits increased $285.5 million for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increases in certificates of deposit and money market balances. Average borrowings decreased $278.9 million for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to increased customer deposits. Overall, the cost of interest-bearing liabilities decreased 16 basis points for the three months ended March 31, 2025 compared to the same period in 2024.
Current wording
Interest expense decreased $2.8 million and $5.6 million for the three and six months ended June 30, 2025 compared to the same periods in 2024. The decrease in interest expense was primarily due to lower levels of borrowings and decreased interest rates. Average interest-bearing deposits increased $253.8 million and $269.9 million for the three and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to increases in certificates of deposit and money market balances. Average borrowings decreased $114.4 million and $196.6 million for the three and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to increased customer deposits. Overall, the cost of interest-bearing liabilities decreased 26 and 21 basis points for the three and six months ended June 30, 2025 compared to the same periods in 2024.
Previous wording
The following table sets forth a summary of the changes in interest earned and interest paid resulting from changes in volume and changes in rates for the periods presented:
Current wording
The following table sets forth for the periods presented a summary of the changes in interest earned and interest paid resulting from changes in volume and changes in rates:
Previous wording
The provision for credit losses includes a provision for losses on loans and on unfunded commitments. The provision for credit losses fluctuates based on changes in loan balances, loan risk ratings, net loan charge-offs and recoveries, the macro environment and our CECL forecast. The provision for credit losses decreased $5.6 million to negative $3.0 million for the three months ended March 31, 2025 compared to $2.6 million for the same period in 2024. The decrease in the provision for credit losses was due to a lower level of ACL and a decrease in net loan charge-offs. The lower level of ACL was related to a reduction in specific reserves of $4.2 million for loans individually evaluated due to the partial pay-off of a $10.7 million C&I relationship that went nonperforming during the three months ended December 31, 2024. The provision for credit losses included a negative $0.5 million for the reserve for unfunded commitments for the three months ended March 31, 2025 compared to a negative $0.8 million for the same period in 2024.
Current wording
The provision for credit losses includes a provision for losses on loans and on unfunded commitments. The provision for credit losses fluctuates based on changes in loan balances, loan risk ratings, net loan charge-offs and recoveries, the macro environment and our CECL forecast.
Previous wording
The provision for credit losses decreased $5.6 million to negative $3.0 million for the three months ended March 31, 2025 compared to $2.6 million for the same period in 2024. The decrease in the provision for credit losses was primarily due to a lower level of ACL and a decrease in net loan charge-offs. The decrease in ACL was due to a $4.2 million reduction in specific reserves for individually evaluated loans.
Current wording
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 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.
Previous wording
Net loan recoveries were $0.0 million for the three months ended March 31, 2025 compared to net loan charge-offs of $6.6 million for the same period in 2024. Offsetting gross loan charge-offs of $0.9 million during the three months ended March 31, 2025 were $0.9 million in recoveries.
Current wording
Net loan charge-offs were $1.2 million and $1.1 million for the three and six months ended June 30, 2025 compared to net loan recoveries of $0.4 million and net loan charge-offs of $6.2 million for the same periods in 2024.
Previous wording
The provision for income taxes increased $0.4 million to $8.3 million for the three months ended March 31, 2025 compared to $7.9 million for the same period in 2024. Our effective tax rate was 19.9 percent for the three months ended March 31, 2025 compared to 20.2 percent for the three months ended March 31, 2024. The decrease in our effective tax rate for the three month period ended March 31, 2025 was primarily due to an increase in low-income housing tax credits compared to the same period in 2024.
Current wording
The provision for income taxes decreased $0.4 million to $8.1 million for the three months ended June 30, 2025 compared to $8.5 million for the same period in 2024 and remained unchanged at $16.4 million for the six months ended June 30, 2025 and the same period in 2024. Our effective tax rate was 20.2 percent for the three months ended June 30, 2025 and 20.1 percent for the six months ended June 30, 2025 compared to 19.8 percent and 20.0 percent for the same periods in 2024. The increase in our effective tax rate for the three and six month periods ended June 30, 2025 was primarily due to a decrease in tax-exempt interest income partially offset by an increase in low-income housing tax credits compared to the same periods in 2024.
Previous wording
Total assets remained unchanged at $9.7 billion at March 31, 2025 and December 31, 2024. Total portfolio loans increased $93.4 million to $7.8 billion at March 31, 2025 compared to December 31, 2024. The commercial loan portfolio increased $81.6 million and the consumer loan portfolio increased $11.8 million compared to December 31, 2024.
Current wording
Total assets increased $152.1 million to $9.8 billion at June 30, 2025 compared to $9.7 billion at December 31, 2024. Total portfolio loans increased $191.5 million to $7.9 billion at June 30, 2025 compared to December 31, 2024. The commercial loan portfolio increased $148.8 million and the consumer loan portfolio increased $42.7 million compared to December 31, 2024.
Previous wording
Securities increased $23.5 million to $1.0 billion at March 31, 2025 compared to December 31, 2024. The securities portfolio was in a net unrealized loss position of $54.4 million at March 31, 2025 compared to a net unrealized loss position of $71.7 million at December 31, 2024. The improvement in the net unrealized loss position of the securities portfolio of $17.3 million was primarily due to a decline in interest rates from December 31, 2024.
Current wording
Securities increased $33.6 million to $1.0 billion at June 30, 2025 compared to December 31, 2024 mainly due to a decrease in unrealized losses. The securities portfolio was in a net unrealized loss position of $46.1 million at June 30, 2025 compared to a net unrealized loss position of $71.7 million at December 31, 2024. The improvement in the net unrealized loss position of the securities portfolio of $25.6 million was primarily due to a decline in interest rates from December 31, 2024.
Previous wording
Customer deposit growth continued to be strong during the three months ended March 31, 2025, allowing for a reduction in higher-cost borrowings and brokered deposits. Total deposits increased $109.8 million to $7.9 billion at March 31, 2025 compared to $7.8 billion at December 31, 2024.Customer deposits increased $134.7 million to $7.7 billion at March 31, 2025 compared to $7.6 billion at December 31, 2024. Brokered deposits decreased $24.9 million to $200.4 million at March 31, 2025 compared to $225.3 million at December 31, 2024. The increase in customer deposits is the result of our continued focus on growing our deposit franchise.
Current wording
Customer deposit growth during the six months ended June 30, 2025 resulted in a reduction in brokered deposits. Total deposits increased $137.8 million to $7.9 billion at June 30, 2025 compared to $7.8 billion at December 31, 2024. Customer deposits increased $162.6 million to $7.7 billion at June 30, 2025 compared to $7.6 billion at December 31, 2024. Brokered deposits decreased $24.8 million to $200.5 million at June 30, 2025 compared to $225.3 million at December 31, 2024. The increase in customer deposits is the result of our continued focus on growing our deposit franchise.
Previous wording
Total shareholders’ equity increased by $37.7 million to $1.4 billion at March 31, 2025 compared to December 31, 2024. The increase was primarily due to net income of $33.4 million and other comprehensive income of $16.4 million offset by dividends of $13.1 million.
Current wording
Total shareholders’ equity increased by $65.2 million to $1.4 billion at June 30, 2025 compared to December 31, 2024. The increase was primarily due to net income of $65.3 million and other comprehensive income of $24.6 million offset by dividends of $26.2 million.
Previous wording
The securities portfolio increased $23.5 million to $1.0 billion at March 31, 2025 compared to December 31, 2024. The increase in the debt securities portfolio was primarily related to an improvement in unrealized losses of $17.3 million from December 31, 2024 to March 31, 2025 as a result of lower interest rates. Additionally, we recognized $2.3 million of realized losses due to the repositioning of $49.3 million of our securities portfolio into longer duration, higher-yielding securities during the three months ended March 31, 2025.
Current wording
The securities portfolio increased $33.6 million to $1.0 billion at June 30, 2025 compared to December 31, 2024. The increase in the debt securities portfolio was primarily related to an improvement in unrealized losses of $25.6 million at June 30, 2025 compared to December 31, 2024 as a result of lower interest rates. Additionally, we had $2.3 million of realized losses due to the repositioning of $49.3 million of our securities portfolio into longer duration, higher-yielding securities during the three months ended March 31, 2025.
Previous wording
Our debt securities portfolio was in a net unrealized loss position of $54.4 million at March 31, 2025 compared to a net unrealized loss position of $71.7 million at December 31, 2024. At March 31, 2025, our debt securities portfolio had gross unrealized losses of $57.8 million offset by $3.4 million of gross unrealized gains compared to gross unrealized losses of $72.7 million offset by gross unrealized gains of $1.0 million at December 31, 2024.
Current wording
Our debt securities portfolio was in a net unrealized loss position of $46.1 million at June 30, 2025 compared to a net unrealized loss position of $71.7 million at December 31, 2024. At June 30, 2025, our debt securities portfolio had gross unrealized losses of $51.7 million offset by $5.6 million of gross unrealized gains compared to gross unrealized losses of $72.7 million offset by gross unrealized gains of $1.0 million at December 31, 2024.
Previous wording
Total portfolio loans were $7.8 billion at March 31, 2025 compared to $7.7 billion at December 31, 2024. For the periods ending March 31, 2025 and December 31, 2024, 24 percent of our total loans were adjustable rate, 37 percent were floating rate and 39 percent were fixed rate.
Current wording
Total portfolio loans were $7.9 billion at June 30, 2025 compared to $7.7 billion at December 31, 2024. As of June 30, 2025, 22 percent of our total loans were adjustable rate, 38 percent were floating rate and 40 percent were fixed rate compared to 24 percent adjustable rate loans, 37 percent floating rate loans and 39 percent fixed rate loans at December 31, 2024.
Previous wording
Commercial loans, including CRE, C&I and commercial construction, comprised 68.4 percent of total portfolio loans at March 31, 2025 and 68.2 percent at December 31, 2024. The commercial loan portfolio increased $81.6 million at March 31, 2025 compared to December 31, 2024 due to increases of $74.2 million in CRE and $27.3 million in commercial construction offset by a decrease of $19.9 million in C&I. The increase in commercial loans was due to improved demand and lower pay-offs in the first three months of 2025 compared to elevated payoffs experienced in 2024.
Current wording
Commercial loans, including CRE, C&I and commercial construction comprised 68.4 percent of total portfolio loans at June 30, 2025 and 68.2 percent at December 31, 2024. The commercial loan portfolio increased $148.8 million at June 30, 2025 compared to December 31, 2024 due to increases of $132.3 million in CRE and $44.9 million in commercial construction offset by a decrease of $28.4 million in C&I.
Previous wording
Consumer loans represent 31.6 percent of our total portfolio loans at March 31, 2025 and 31.8 percent at December 31, 2024. The consumer loan portfolio increased $11.8 million at March 31, 2025 compared to December 31, 2024, primarily due to growth in our consumer real estate portfolio of $18.4 million, as we continue to hold mortgages in our portfolio rather than sell them in the secondary market.
Current wording
Consumer loans represent 31.6 percent of our total portfolio loans at June 30, 2025 and 31.8 percent at December 31, 2024. The consumer loan portfolio increased $42.7 million at June 30, 2025 compared to December 31, 2024 primarily due to growth in our consumer real estate portfolio of $47.3 million.
Previous wording
The ACL decreased $2.5 million to $99.0 million, or 1.26 percent of total portfolio loans, at March 31, 2025 compared to $101.5 million, or 1.31 percent of total portfolio loans, at December 31, 2024. The decrease in the ACL is due to a reduction in specific reserves for loans individually evaluated related to the partial pay-off of a $10.7 million C&I relationship that went nonperforming during the three months ended December 31, 2024. The decrease in the ACL was partially offset by a $1.2 million increase in our quantitative reserve due to loan growth and downgrades in our C&I portfolio and a $0.5 million increase in our qualitative reserve and forecast due to the concerns in the economic environment.
Current wording
The ACL decreased $2.9 million to $98.6 million, or 1.24 percent of total portfolio loans, at June 30, 2025 compared to $101.5 million, or 1.31 percent of total portfolio loans, at December 31, 2024. The decrease of $2.9 million in the ACL was primarily due to a reduction in specific reserves for loans individually evaluated related to the partial pay-off in 2025 of a $10.7 million C&I relationship that went nonperforming during the three months ended December 31, 2024. The decrease in the ACL was partially offset by a $0.9 million increase in our quantitative reserve primarily due to loan growth.
Previous wording
Our policy is to place loans in all categories in nonaccrual status when collection of interest or principal is doubtful, or generally when interest or principal payments are 90 days or more past the contractual due date. Nonaccrual loans decreased $5.6 million to $22.3 million at March 31, 2025 compared to $27.9 million at December 31, 2024. The decrease in nonaccrual loans was primarily due to the partial pay-off of the $10.7 million C&I relationship mentioned above.
Current wording
Our policy is to place loans in all categories in nonaccrual status when collection of interest or principal is doubtful, or generally when interest or principal payments are 90 days or more past the contractual due date. Nonaccrual loans decreased $6.6 million to $21.3 million at June 30, 2025 compared to $27.9 million at December 31, 2024. The decrease in nonaccrual loans was primarily due to the partial pay-off of the $10.7 million C&I relationship mentioned above.
Previous wording
Total deposits increased $109.8 million, or 1.4 percent, at March 31, 2025 compared to December 31, 2024. Customer deposits increased $134.7 million, or 1.8 percent compared to December 31, 2024, as a result of our focus on growing our deposit franchise. Total brokered deposits decreased $24.9 million from December 31, 2024 due to strong growth in customer deposits. Brokered deposits are an additional source of funds utilized by ALCO as a way to diversify funding sources, as well as manage our funding costs and structure.
Current wording
Total deposits increased $137.8 million, or 1.8 percent, at June 30, 2025 compared to December 31, 2024. Customer deposits increased $162.6 million, or 2.2 percent compared to December 31, 2024. Total brokered deposits decreased $24.8 million from December 31, 2024 due to growth in customer deposits. Brokered deposits are an additional source of funds utilized by ALCO as a way to diversify funding sources, as well as manage our funding costs and structure.
Previous wording
As a member of the IntraFi network, we are able to offer our customers insurance coverage on interest-bearing demand, money market and certificates of deposit balances in excess of the FDIC insurance limits. IntraFi balances were $316.3 million at March 31, 2025 compared to $324.8 million at December 31, 2024.
Current wording
As a member of the IntraFi network, we are able to offer our customers insurance coverage on interest-bearing demand, money market and certificates of deposit balances in excess of the FDIC insurance limits. IntraFi balances were $292.2 million at June 30, 2025 compared to $324.8 million at December 31, 2024.
Previous wording
We had total uninsured deposits of $2.7 billion, or 33.9 percent of our total deposit base, at March 31, 2025 compared to $2.6 billion, or 33.5 percent of our total deposit base, at December 31, 2024.
Current wording
We had total uninsured deposits of $2.7 billion, or 34.1 percent of our total deposit base, at June 30, 2025 compared to $2.6 billion, or 33.5 percent of our total deposit base, at December 31, 2024.
Previous wording
Borrowings are an additional source of funding for us. Short-term borrowings are for terms under or equal to one year at March 31, 2025 and are comprised of FHLB Advances. Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances and finance leases. Total borrowings decreased $55.0 million to $195.3 million at March 31, 2025 compared to $250.3 million at December 31, 2024 primarily due to strong growth in customer deposits.
Current wording
Borrowings are an additional source of funding for us. Short-term borrowings are for terms under or equal to one year at June 30, 2025 and are comprised of FHLB Advances. Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances and finance leases. Total borrowings were $250.3 million at June 30, 2025 and December 31, 2024.
Previous wording
We have contractual obligations representing required future payments on certificates of deposit, junior subordinated debt securities, short-term borrowings, long-term borrowings, operating and capital leases, funding commitments on tax credit equity investments and purchase obligations. See the "Liquidity and Capital Resources" section presented in our Form 2024 10-K under Part II, Item 7- "Management’s Discussion and Analysis of Financial Condition and Results of Operations" for more information on these future cash outflows. Total certificates of deposit decreased $44.3 million to $1.8 billion at March 31, 2025 compared to December 31, 2024 and short-term borrowings decreased $55.0 million to $95.0 million at March 31, 2025 compared to December 31, 2024. Other than these changes, there have been no material changes to the contractual obligations previously disclosed in our 2024 Form 10-K.
Current wording
We have contractual obligations representing required future payments on certificates of deposit, junior subordinated debt securities, short-term borrowings, long-term borrowings, operating and capital leases, funding commitments on tax credit equity investments and purchase obligations. See the "Liquidity and Capital Resources" section presented in our Form 2024 10-K under Part II, Item 7- "Management’s Discussion and Analysis of Financial Condition and Results of Operations" for more information on these future cash outflows. There have been no material changes to the contractual obligations previously disclosed in our 2024 Form 10-K.
Previous wording
An important component of our ability to effectively respond to potential liquidity stress events is maintaining a cushion of highly liquid assets. Highly liquid assets are those that can be converted to cash quickly to meet financial obligations. ALCO policy guidelines define a ratio of highly liquid assets to total assets by graduated risk tolerance levels of minimal, moderate and high. At March 31, 2025, S&T Bank had $923.1 million in highly liquid assets, which consisted primarily of $124.4 million in interest-bearing deposits with banks and $798.7 million in unpledged securities. This resulted in a highly liquid assets to total assets ratio of 9.5 percent at March 31, 2025.
Current wording
An important component of our ability to effectively respond to potential liquidity stress events is maintaining a cushion of highly liquid assets. Highly liquid assets are those that can be converted to cash quickly to meet financial obligations. ALCO policy guidelines define a ratio of highly liquid assets to total assets by graduated risk tolerance levels of minimal, moderate and high. At June 30, 2025, S&T Bank had $912.2 million in highly liquid assets, which consisted primarily of $113.5 million in interest-bearing deposits with banks and $798.7 million in unpledged securities. This resulted in a highly liquid assets to total assets ratio of 9.3 percent at June 30, 2025.
Previous wording
The following table summarizes capital amounts and ratios for S&T and S&T Bank as of the dates presented:
Current wording
We continue to maintain a strong capital position with our capital ratios in excess of the well-capitalized regulatory guidelines. The following table summarizes capital amounts and ratios for S&T and S&T Bank as of the dates presented:
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
(1) Tax-exempt interest income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.
Current report — wording carried from elsewhere
(2)Taxable investment income is adjusted for the dividend-received deduction for equity securities.