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Regulatory Matters
 12 Months Ended
Dec. 31, 2014
Banking and Thrift [Abstract]  
Regulatory Matters
REGULATORY MATTERS
We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about risk weightings and other factors.
The most recent notifications from the Federal Reserve and the FDIC categorized S&T and S&T Bank as well capitalized under the regulatory framework for corrective action. There have been no conditions or events that we believe have changed S&T or S&T Bank’s status during 2014 and 2013.
Tier 1 capital consists principally of shareholders’ equity, including preferred stock; excluding items recorded in accumulated other comprehensive income (loss), less goodwill and other intangibles. For regulatory purposes, trust preferred securities totaling $20.0 million, issued by an unconsolidated trust subsidiary of S&T underlying junior subordinated debt, are included in Tier 1 capital for S&T. Total capital consists of Tier 1 capital plus junior subordinated debt and the ALL subject to limitation. We currently have $25.0 million in junior subordinated debt which is included in Tier 2 capital for S&T in accordance with current regulatory reporting requirements.
Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios of Total and Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. As of December 31, 2014 and 2013, we met all capital adequacy requirements to which we are subject.
The following table summarizes risk-based capital amounts and ratios for S&T and S&T Bank.
 
Actual
 
Minimum
Regulatory Capital
Requirements
 
To be
Well Capitalized
Under Prompt
Corrective Action
Provisions
(dollars in thousands)
Amount

Ratio

 
Amount

Ratio

 
Amount

Ratio

As of December 31, 2014
 
 
 
 
 
 
 
 
Total Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
$
537,935

14.27
%
 
$
301,548

8.00
%
 
$
376,936

10.00
%
S&T Bank
475,538

12.68
%
 
300,095

8.00
%
 
375,119

10.00
%
Tier 1 Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
465,114

12.34
%
 
150,774

4.00
%
 
226,161

6.00
%
S&T Bank
403,593

10.76
%
 
150,048

4.00
%
 
225,071

6.00
%
Leverage Ratio(1)
 
 
 
 
 
 
 
 
S&T
465,114

9.80
%
 
189,895

4.00
%
 
237,369

5.00
%
S&T Bank
403,593

8.53
%
 
189,182

4.00
%
 
236,477

5.00
%
As of December 31, 2013
 
 
 
 
 
 
 
 
Total Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
$
494,986

14.36
%
 
$
275,684

8.00
%
 
$
344,606

10.00
%
S&T Bank
457,540

13.35
%
 
274,257

8.00
%
 
342,821

10.00
%
Tier 1 Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
426,234

12.37
%
 
137,842

4.00
%
 
206,763

6.00
%
S&T Bank
389,584

11.36
%
 
137,128

4.00
%
 
205,693

6.00
%
Leverage Ratio(1)
 
 
 
 
 
 
 
 
S&T
426,234

9.75
%
 
174,824

4.00
%
 
218,530

5.00
%
S&T Bank
389,584

8.95
%
 
174,081

4.00
%
 
217,601

5.00
%
(1)
Minimum requirement is 3.00 percent for the most highly rated financial institutions.