Regulatory Matters

12 Months Ended

Dec. 31, 2022

Regulatory Capital Requirements Under Banking Regulations [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's or S&T Bank’s status during 2022 and 2021.

Common equity tier 1 capital includes common stock and related surplus plus retained earnings, less goodwill and intangible assets subject to a limitation and certain deferred tax assets subject to a limitation. In addition, we made a one-time permanent election to exclude accumulated OCI from capital. For regulatory purposes, trust preferred securities totaling $29.0 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 ACL 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, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. As of December 31, 2022 and 2021, 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, 2022
Leverage Ratio
S&T	$	967,708	11.06	%	$	349,914	4.00	%	$	437,392	5.00	%
S&T Bank	938,377		10.73	%	349,746		4.00	%	437,182		5.00	%
Common Equity Tier 1 (to Risk-Weighted Assets)
S&T	938,708		12.81	%	329,701		4.50	%	476,235		6.50	%
S&T Bank	938,377		12.81	%	329,565		4.50	%	476,038		6.50	%
Tier 1 Capital (to Risk-Weighted Assets)
S&T	967,708		13.21	%	439,602		6.00	%	586,135		8.00	%
S&T Bank	938,377		12.81	%	439,420		6.00	%	585,893		8.00	%
Total Capital (to Risk-Weighted Assets)
S&T	1,078,897		14.73	%	586,135		8.00	%	732,669		10.00	%
S&T Bank	1,049,566		14.33	%	585,893		8.00	%	732,367		10.00	%
As of December 31, 2021
Leverage Ratio
S&T	$	889,785	9.74	%	$	365,535	4.00	%	$	456,918	5.00	%
S&T Bank	864,127		9.46	%	365,544		4.00	%	456,930		5.00	%
Common Equity Tier 1 (to Risk-Weighted Assets)
S&T	860,785		12.03	%	322,109		4.50	%	465,268		6.50	%
S&T Bank	864,127		12.09	%	321,711		4.50	%	464,694		6.50	%
Tier 1 Capital (to Risk-Weighted Assets)
S&T	889,785		12.43	%	429,479		6.00	%	572,638		8.00	%
S&T Bank	864,127		12.09	%	428,948		6.00	%	571,931		8.00	%
Total Capital (to Risk-Weighted Assets)
S&T	987,420		13.79	%	572,638		8.00	%	715,798		10.00	%
S&T Bank	961,762		13.45	%	571,931		8.00	%	714,913		10.00	%