S&T BANCORP INC

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 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.

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 nine months ended September 30, 2025 and 2024. Our MD&A should be read in conjunction with our Condensed Consolidated Financial Statements and Notes. The results of operations reported in the accompanying Condensed Consolidated Financial Statements are not necessarily indicative of results to be expected in future periods.

Previous wording

We view critical accounting policies to be those which are highly dependent on subjective or complex estimates, assumptions and judgments and where changes in those estimates and assumptions could have a significant impact on the Consolidated Financial Statements. Further, we view critical accounting estimates as those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Our critical accounting policies and estimates as of June 30, 2025 remained unchanged from the disclosures presented in our 2024 Form 10-K under Part II, Item 7 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Current wording

We view critical accounting policies to be those which are highly dependent on subjective or complex estimates, assumptions and judgments and where changes in those estimates and assumptions could have a significant impact on the Condensed Consolidated Financial Statements. Further, we view critical accounting estimates as those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Our critical accounting policies and estimates as of September 30, 2025 remained unchanged from the disclosures presented in our 2024 Form 10-K under Part II, Item 7 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Previous wording

The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

Current wording

In addition to traditional financial measures presented in accordance with GAAP, our management uses, and this report contains or references, certain non-GAAP financial measures, such as interest income on interest-earning assets, net interest income and net interest margin presented on a fully taxable equivalent, or FTE, basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison combining both taxable and non-taxable sources of interest income.

Previous wording

In addition to traditional financial measures presented in accordance with GAAP, our management uses, and this report contains or references, certain non-GAAP financial measures discussed below. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying business, operational performance and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies.

Current wording

We believe the above non-GAAP financial measures provide information useful to investors in understanding our underlying business, operational performance and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies.

Previous 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.

Current wording

We recognized net income of $35.0 million, or $0.91 per diluted share, for the three months ended September 30, 2025 compared to net income of $32.6 million, or $0.85 per diluted share, for the same period in 2024 and net income of $100.3 million, or $2.60 per diluted share, for the nine months ended September 30, 2025 compared to net income of $98.2 million, or $2.55 per diluted share, for the same period in 2024.

Previous 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.

Current wording

Net interest income increased $4.8 million, or 5.64 percent, and $7.6 million, or 3.02 percent, for the three and nine months ended September 30, 2025 compared to the same periods in 2024. Net interest margin, or NIM, on an FTE basis (non-GAAP) increased 11 basis points to 3.93% for the three months ended September 30, 2025 compared to 3.82% in the same period in 2024 and increased 3 basis points to 3.87 percent for the nine months ended September 30, 2025 compared to 3.84 percent in the same period 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, an improvement in our overall funding mix and strong earnings retention. Customer deposit growth in 2024 and 2025 has reduced our levels of borrowings and brokered deposits.

Previous 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.

Current wording

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.

Previous wording

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 wording

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.

Previous wording

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 wording

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.

Previous 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.

Current wording

Our effective tax rate was 20.2 percent and 20.1 percent for the three and nine months ended September 30, 2025 compared to 21.4 percent and 20.5 percent for the three and nine months ended September 30, 2024. The decrease in the effective tax rate for the three and nine months ended September 30, 2025 was primarily due to an increase in low-income housing tax credits partially offset by a decrease in tax-exempt interest income compared to the same periods in 2024.

Previous wording

Three and six months ended June 30, 2025 Compared to Three and six months ended June 30, 2024

Current wording

Three and nine months ended September 30, 2025 Compared to Three and nine months ended September 30, 2024

Previous wording

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 wording

Net interest income on an FTE basis (non-GAAP) increased $4.7 million, or 5.5 percent, and $7.4 million, or 2.9 percent, for the three and nine months ended September 30, 2025 compared to the same periods in 2024. The NIM on an FTE basis (non-GAAP) increased 11 and 3 basis points for the three and nine months ended September 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, an improvement in our overall funding mix and strong earnings retention. Customer deposit growth in 2024 and 2025 has reduced our levels of borrowings and brokered deposits.

Previous 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.

Current wording

Interest income on an FTE basis (non-GAAP) remained relatively unchanged for the three months ended September 30, 2025 and decreased $2.9 million for the nine months ended September 30, 2025 compared to the same periods in 2024. The decrease in interest income on an FTE basis (non-GAAP) for the nine months ended September 30, 2025 was primarily due to lower interest rates. The average yield on loan balances decreased 26 basis points for both the three and nine months ended September 30, 2025 compared to the same periods in 2024. Average loan balances increased $276.9 million and $187.7 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024. 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 68 and 77 basis points for the three and nine months ended September 30, 2025 compared to the same periods in 2024. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 16 and 15 basis points for the three and nine months ended September 30, 2025 compared to the same periods in 2024.

Previous 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.

Current wording

Interest expense decreased $4.6 million and $10.2 million for the three and nine months ended September 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 $224.0 million and $254.6 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to increases in certificates of deposit and money market balances. Average borrowings decreased $118.4 million and $170.4 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024 primarily due to increased customer deposits. Overall, the cost of interest-bearing liabilities decreased 36 and 26 basis points for the three and nine months ended September 30, 2025 compared to the same periods in 2024.

Previous 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 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 wording

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 period 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, which were 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.

Previous 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.

Current wording

Net loan charge-offs were $2.4 million and $3.5 million for the three and nine months ended September 30, 2025 compared to net loan charge-offs of $2.1 million and $8.3 million for the same periods in 2024.

Previous wording

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 wording

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 for the three months ended September 30, 2025 was due to no security losses recognized for the three months ended September 30, 2025 compared to $2.2 million of losses recognized in the same period in 2024, offset by a decrease of $0.4 million in other noninterest income in 2025. The decrease of $0.3 million in noninterest income for the nine months ended September 30, 2025 was primarily related to the repositioning of the securities portfolio resulting in higher losses in 2024 of $3.0 million. These losses were offset by a fair value adjustment of $3.2 million for the Visa exchange offer in 2024 with no similar activity in 2025.

Previous wording

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 wording

Noninterest expense increased $1.0 million and $6.1 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024. Salaries and employee benefits increased $0.9 million and $3.8 million for the three and nine months ended September 30, 2025 primarily due to annual merit increases, higher incentives and increased medical costs. Data processing and information technology increased $0.5 million for the nine months ended September 30, 2025 due to additional services provided through our third party vendor. Occupancy increased $1.0 million for the nine months ended September 30, 2025 due to increased maintenance and utility costs. Other noninterest expense increased $1.0 million for the nine months ended September 30, 2025 primarily related to higher recruitment and loan collection expenses. Other taxes increased $0.5 million for the nine months ended September 30, 2025 due to higher shares tax expense as compared to the same period in 2024.

Previous 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.

Current wording

The provision for income taxes remained unchanged at $8.9 million and $25.3 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024. Our effective tax rate was 20.2 percent and 20.1 percent for the three and nine months ended September 30, 2025 compared to 21.4 percent and 20.5 percent for the same periods in 2024. The decrease in our effective tax rate for the three and nine month periods ended September 30, 2025 was primarily due to an increase in low-income housing tax credits partially offset by a decrease in tax-exempt interest income compared to the same periods in 2024.

Previous wording

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 wording

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 do not expect the Act to have a material impact on our consolidated financial statements.

Previous 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.

Current wording

Total assets increased $159.5 million to $9.8 billion at September 30, 2025 compared to $9.7 billion at December 31, 2024. Total portfolio loans increased $238.0 million to $8.0 billion at September 30, 2025 compared to December 31, 2024. The commercial loan portfolio increased $158.8 million and the consumer loan portfolio increased $79.3 million compared to December 31, 2024.

Previous 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.

Current wording

Securities increased $13.6 million to $1.0 billion at September 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 $38.8 million at September 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 $32.9 million was primarily due to a decline in interest rates from December 31, 2024.

Previous 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.

Current wording

Total deposits increased $138.8 million to $7.9 billion at September 30, 2025 compared to $7.8 billion at December 31, 2024 as a result of our continued focus on growing our deposit franchise. Customer deposits increased $163.6 million to $7.7 billion at September 30, 2025 compared to $7.6 billion at December 31, 2024. Brokered deposits decreased $24.8 million to $200.5 million at September 30, 2025 compared to $225.3 million at December 31, 2024.

Previous 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.

Current wording

Total shareholders’ equity increased by $95.2 million to $1.5 billion at September 30, 2025 compared to December 31, 2024. The increase was primarily due to net income of $100.3 million and other comprehensive income of $31.8 million offset by dividends of $39.3 million. The increase in other comprehensive income is primarily due to improvement in the net unrealized loss position of the securities portfolio of $32.9 million which is related to a decline in interest rates from December 31, 2024.

Previous 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.

Current wording

The securities portfolio increased $13.6 million to $1.0 billion at September 30, 2025 compared to December 31, 2024. The increase in the debt securities portfolio was primarily related to an improvement in unrealized losses of $32.9 million at September 30, 2025 compared to December 31, 2024 as a result of lower interest rates. Additionally, we had $2.3 million million of realized losses due to the repositioning of $49.3 million of our securities portfolio into longer duration, higher-yielding securities during the nine months ended September 30, 2025.

Previous 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.

Current wording

Our debt securities portfolio was in a net unrealized loss position of $38.8 million at September 30, 2025 compared to a net unrealized loss position of $71.7 million at December 31, 2024. At September 30, 2025, our debt securities portfolio had gross unrealized losses of $46.1 million offset by $7.3 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 $7.9 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.

Current wording

Total portfolio loans were $8.0 billion at September 30, 2025 compared to $7.7 billion at December 31, 2024. As of September 30, 2025, 23 percent of our total loans were adjustable rate, 37 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 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.

Current wording

Commercial loans, including CRE, C&I and commercial construction comprised 68.2 percent of total portfolio loans at both September 30, 2025 and December 31, 2024. The commercial loan portfolio increased $158.8 million at September 30, 2025 compared to December 31, 2024 due to an increase of $265.8 million in CRE offset by decreases of $74.3 million in C&I and $32.7 million in commercial construction.

Previous 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.

Current wording

Consumer loans represent 31.8 percent of our total portfolio loans at September 30, 2025 and December 31, 2024. The consumer loan portfolio increased $79.3 million at September 30, 2025 compared to December 31, 2024 primarily due to growth in our consumer real estate portfolio of $81.5 million.

Previous 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.

Current wording

The ACL decreased $3.3 million to $98.2 million, or 1.23 percent of total portfolio loans, at September 30, 2025 compared to $101.5 million, or 1.31 percent of total portfolio loans, at December 31, 2024. The decrease in the ACL was primarily due to a reduction of $1.5 million in specific reserves for loans individually evaluated and a lower level of qualitative reserve and C&I segment specific reserve.

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 $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.

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 increased $21.7 million to $49.6 million at September 30, 2025 compared to $27.9 million at December 31, 2024. Nonaccrual loans have increased from an exceptionally low level and remain manageable. The increase in nonaccrual loans was primarily due to the addition of two CRE relationships totaling $23.4 million and a C&I relationship totaling $5.0 million that moved to nonaccrual during the three months ended September 30, 2025.

Previous 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.

Current wording

Total deposits increased $138.8 million, or 1.8 percent, at September 30, 2025 compared to December 31, 2024 as a result of our continued focus on growing our deposit franchise. Customer deposits increased $163.6 million, or 2.2 percent compared to December 31, 2024. Total brokered deposits decreased $24.8 million from December 31, 2024. 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 $292.2 million at June 30, 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 $292.4 million at September 30, 2025 compared to $324.8 million at December 31, 2024.

Previous 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.

Current wording

We had total uninsured deposits of $2.7 billion, or 34.5 percent of our total deposit base, at September 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 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.

Current wording

Borrowings are an additional source of funding for us. Short-term borrowings are for terms under or equal to one year at September 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 $235.3 million at September 30, 2025 compared to $250.3 million at December 31, 2024.

Previous wording

Information pertaining to short-term borrowings is summarized in the table below for the three months ended June 30, 2025 and for the twelve months ended December 31, 2024.

Current wording

Information pertaining to short-term borrowings is summarized in the table below for the nine months ended September 30, 2025 and for the twelve months ended December 31, 2024.

Previous wording

Information pertaining to long-term borrowings and junior subordinated debt securities is summarized in the tables below for the three months ended June 30, 2025 and for the twelve months ended December 31, 2024.

Current wording

Information pertaining to long-term borrowings and junior subordinated debt securities is summarized in the tables below for the nine months ended September 30, 2025 and for the twelve months ended December 31, 2024.

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 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.

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 September 30, 2025, S&T Bank had $872.8 million in highly liquid assets, which consisted primarily of $121.2 million in interest-bearing deposits with banks and $751.6 million in unpledged securities. This resulted in a highly liquid assets to total assets ratio of 8.9 percent at September 30, 2025.