Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2025

Loans and Loans Held for Sale

Loans are presented net of unearned income. Unearned income consisted of net deferred loan fees and costs of $4.8 million at December 31, 2025 and $4.3 million at December 31, 2024 and a discount related to purchase accounting fair value adjustments of $2.0 million at December 31, 2025 and $2.5 million at December 31, 2024.

The following table summarizes the composition of our loan portfolio as of the dates presented:


(dollars in thousands)	December 31, 2025		December 31, 2024
Commercial real estate	$	2,921,761	$	2,708,531
Commercial and industrial	1,330,605		1,351,637
Commercial construction	365,377		341,266
Business banking	1,315,863		1,303,258
Consumer real estate	2,047,071		1,933,509
Other consumer	91,280		104,757
Total Portfolio Loans	$	8,071,957	$	7,742,958
Loans held for sale	1,010		—
Total Loans(1)	$	8,072,967	$	7,742,958

(1)Excludes interest receivable of $33.4 million at December 31, 2025 and $32.7 million at December 31, 2024. Interest receivable is included in other assets in the Consolidated Balance Sheets.

Modifications to Borrowers Experiencing Financial Difficulty

The following tables present the amortized cost of loans to borrowers experiencing financial difficulty by portfolio segment and type of modification during the periods presented:



	Twelve Months Ended December 31, 2025
(dollars in thousands)	Term Extension		Payment Delays (Other Than Insignificant)		Term Extension and Interest Rate Reduction		Term Extension and Payment Delays		Total		% of Portfolio Segment

Commercial and industrial	$	18,922	$	—	$	—	$	13,450	$	32,372	2.43	%


Consumer real estate	577		—		—		—		577		0.03	%

Total	$	19,499	$	—	$	—	$	13,450	$	32,949	0.41	%

	Twelve Months Ended December 31, 2024
(dollars in thousands)	Term Extension		Payment Delays (Other Than Insignificant)		Term Extension and Payment Delays		Term Extension and Interest Rate Reduction		Total		% of Portfolio Segment
Commercial real estate	$	3,004	$	—	$	685	$	—	$	3,689	0.14	%
Commercial and industrial	9,437		12,264		—		—		21,701		1.61	%


Consumer real estate	493		—		—		—		493		0.03	%

Total	$	12,934	$	12,264	$	685	$	—	$	25,883	0.33	%

The following tables describe the effect of loan modifications made to borrowers experiencing financial difficulty during the periods presented:



	Twelve Months Ended December 31, 2025
		Weighted-Average Term Extension (in months)		Weighted-Average Payment Delays (in months)		Weighted-Average Term Extension and Payment Delays (in months)

Commercial and industrial			15		—		5


Consumer real estate			188		—		—



	Twelve Months Ended December 31, 2024
		Weighted-Average Term Extension (in months)		Weighted-Average Payment Delays (in months)	Weighted-Average Term Extension (in months) and Payment Delays
Commercial real estate			1			—	22
Commercial and industrial			10			6	—


Consumer real estate			101			—	—

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts.

The following tables present an aging analysis since the date of modification for loans to borrowers experiencing financial difficulty that were modified in the last 12 months as of the dates presented:


	December 31, 2025
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total

Commercial and industrial	28,932		—		3,440		—		32,372


Consumer real estate	398		—		12		167		577

Total	$	29,330	$	—	$	3,452	$	167	$	32,949


	December 31, 2024
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Commercial real estate	$	3,689	$	—	$	—	$	—	$	3,689
Commercial and industrial	14,226		7,475		—		—		21,701


Consumer real estate	347		—		40		106		493

Total	$	18,262	$	7,475	$	40	$	106	$	25,883

A payment default is defined as a loan having a payment past due 90 days or more. There were four payment defaults on previously modified loans to borrowers experiencing financial difficulty in the amount of $3.9 million during the twelve months ended December 31, 2025 of which $3.4 million are 60-89 days past due as of December 31, 2025 compared to one payment default for $0.1 million in the same periods in 2024. Additionally, we had nine commitments to lend an additional $1.8 million to borrowers experiencing financial difficulty that had a modification during the twelve months ended December 31, 2025 and five commitments to lend an additional $0.8 million to borrowers experiencing financial difficulty that had a modification during the same period in 2024.

The effect of modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses, or ACL, because of the measurement methodologies used to estimate the ACL, therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification.

The following table presents a summary of the aggregate amount of loans to certain officers and directors of S&T or any affiliates of such persons as of the dates presented:


	December 31,
(dollars in thousands)	2025		2024
Balance at beginning of year	$	3,560	$	4,183
New loans	646		1,484
Repayments or no longer considered a related party	(1,598)		(2,107)
Balance at End of Year	$	2,608	$	3,560

Allowance for Credit Losses

We maintain an ACL, at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer.

The following are key risks within each portfolio segment:

CRE—Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied.

C&I—Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt.

Commercial Construction—Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While these loans are generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer.

Business Banking—Commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. The business banking portfolio is monitored by utilizing a standard and closely managed process focusing on behavioral and performance criteria. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and business.

Consumer Real Estate—Loans secured by first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt.

Other Consumer—Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values.

Management monitors various credit quality indicators for the commercial, business banking and consumer loan portfolios, including changes in risk ratings, nonperforming status and delinquency on a monthly basis.

We monitor the commercial and business banking loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention or substandard.

Our risk ratings are consistent with regulatory guidance and are as follows:

Pass—The loan is currently performing and is of high quality.

Special Mention—A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date.

Substandard—A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful—Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.

The following tables present loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the dates presented:


	December 31, 2025
	Risk Rating by Year of Origination
(dollars in thousands)	2025		2024		2023		2022		2021		2020 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Pass	$	480,967	$	312,777	$	322,165	$	311,087	$	328,936	$	1,047,543	$	42,300	$	—	$	2,845,775
Special mention	—		2,907		—		6,865		3,148		25,805		254		—		38,979
Substandard	—		—		3,883		1,700		11,642		19,782		—		—		37,007
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate	480,967		315,684		326,048		319,652		343,726		1,093,130		42,554		—		2,921,761
Year-to-date Gross Charge-offs	—		—		—		4,907		—		2,432		—		—		7,339

Commercial and Industrial
Pass	161,634		95,715		111,222		138,390		75,406		165,633		501,472		—		1,249,472
Special mention	—		350		2,423		1,394		3		13,611		8,179		—		25,960
Substandard	—		—		1,914		—		18,152		5,644		27,853		—		53,563
Doubtful	—		—		—		—		—		—		1,610		—		1,610
Total Commercial and Industrial	161,634		96,065		115,559		139,784		93,561		184,888		539,114		—		1,330,605
Year-to-date Gross Charge-offs	256		—		4,014		172		—		2,089		192		—		6,723

Commercial Construction
Pass	172,822		118,952		43,093		18,762		2,520		1,260		7,099		—		364,508
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		869		—		—		—		—		—		—		869
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	172,822		119,821		43,093		18,762		2,520		1,260		7,099		—		365,377
Year-to-date Gross Charge-offs	—		—		—		118		—		—		—		—		118

Business Banking
Pass	182,401		132,196		201,106		197,145		157,792		328,135		93,701		453		1,292,929
Special mention	—		394		—		427		137		2,871		4		161		3,994
Substandard	—		—		5,175		2,208		3,364		7,574		151		468		18,940
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	182,401		132,590		206,281		199,780		161,293		338,580		93,856		1,082		1,315,863
Year-to-date Gross Charge-offs	—		19		132		39		225		699		—		—		1,114

Consumer Real Estate
Pass	161,896		220,705		297,533		306,440		119,775		277,507		618,767		29,868		2,032,491
Special mention	—		—		—		—		—		84		—		—		84
Substandard	—		583		2,927		522		186		4,399		2,006		3,873		14,496
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	161,896		221,288		300,460		306,962		119,961		281,990		620,773		33,741		2,047,071
Year-to-date Gross Charge-offs	5		35		134		2		—		156		31		465		828

Other Consumer
Pass	7,016		5,253		3,919		3,869		1,090		984		59,304		9,640		91,075
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		13		—		10		143		—		39		205
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	7,016		5,253		3,932		3,869		1,100		1,127		59,304		9,679		91,280
Year-to-date Gross Charge-offs	1,027		35		36		73		30		58		1		693		1,953

Pass	1,166,736		885,598		979,038		975,693		685,519		1,821,062		1,322,643		39,961		7,876,250
Special mention	—		3,651		2,423		8,686		3,288		42,371		8,437		161		69,017
Substandard	—		1,452		13,912		4,430		33,354		37,542		30,010		4,380		125,080
Doubtful	—		—		—		—		—		—		1,610		—		1,610
Total Loan Balance	$	1,166,736	$	890,701	$	995,373	$	988,809	$	722,161	$	1,900,975	$	1,362,700	$	44,502	$	8,071,957

Year-to-date Gross Charge-offs	$	1,288	$	89	$	4,316	$	5,311	$	255	$	5,434	$	224	$	1,158	$	18,075


	December 31, 2024
	Risk Rating by Year of Origination
(dollars in thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Pass	$	278,187	$	287,081	$	362,174	$	413,781	$	213,384	$	1,040,703	$	35,737	$	—	$	2,631,047
Special mention	—		2,000		370		1,840		—		46,104		254		—		50,568
Substandard	—		—		985		—		1,834		23,683		—		—		26,502
Doubtful	—		—		—		—		414		—		—		—		414
Total Commercial Real Estate	278,187		289,081		363,529		415,621		215,632		1,110,490		35,991		—		2,708,531
Year-to-date Gross Charge-offs	—		—		—		—		—		5,205		—		—		5,205

Commercial and Industrial
Pass	119,580		147,007		194,363		131,877		30,093		175,359		466,640		—		1,264,919
Special mention	—		20		1,221		142		10		14,896		11,033		—		27,322
Substandard	563		1,073		172		20,586		740		7,171		25,355		—		55,660
Doubtful	—		—		—		366		469		—		2,901		—		3,736
Total Commercial and Industrial	120,143		148,100		195,756		152,971		31,312		197,426		505,929		—		1,351,637
Year-to-date Gross Charge-offs	—		78		—		1,235		—		91		1,032		—		2,436

Commercial Construction
Pass	119,355		121,816		57,853		14,911		884		2,139		8,310		—		325,268
Special mention	—		—		15,998		—		—		—		—		—		15,998
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	119,355		121,816		73,851		14,911		884		2,139		8,310		—		341,266
Year-to-date Gross Charge-offs	—		—		—		—		—		—		—		—		—

Business Banking
Pass	149,603		230,784		225,318		173,763		76,087		332,707		92,756		597		1,281,615
Special mention	—		—		49		130		147		4,302		35		268		4,931
Substandard	21		2,257		1,287		3,790		409		8,318		190		440		16,712
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	149,624		233,041		226,654		177,683		76,643		345,327		92,981		1,305		1,303,258
Year-to-date Gross Charge-offs	—		79		124		—		56		1,486		—		—		1,745

Consumer Real Estate
Pass	217,250		334,532		324,346		133,155		95,301		223,799		569,386		24,940		1,922,709
Special mention	—		—		—		—		—		99		—		—		99
Substandard	—		1,231		43		192		203		5,564		1,172		2,296		10,701
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	217,250		335,763		324,389		133,347		95,504		229,462		570,558		27,236		1,933,509
Year-to-date Gross Charge-offs	—		—		—		—		9		37		86		1,216		1,348

Other Consumer
Pass	8,456		6,849		7,349		3,228		1,758		468		71,039		5,425		104,572
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		21		10		150		—		4		185
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	8,456		6,849		7,349		3,249		1,768		618		71,039		5,429		104,757
Year-to-date Gross Charge-offs	839		34		164		103		26		18		—		270		1,454


Pass	892,431		1,128,069		1,171,403		870,715		417,507		1,775,175		1,243,868		30,962		7,530,130
Special mention	—		2,020		17,638		2,112		157		65,401		11,322		268		98,918
Substandard	584		4,561		2,487		24,589		3,196		44,886		26,717		2,740		109,760
Doubtful	—		—		—		366		883		—		2,901		—		4,150
Total Loan Balance	$	893,015	$	1,134,650	$	1,191,528	$	897,782	$	421,743	$	1,885,462	$	1,284,808	$	33,970	$	7,742,958

Year-to-date Gross Charge-offs	$	839	$	191	$	288	$	1,338	$	91	$	6,837	$	1,118	$	1,486	$	12,188

The following tables present the aging analysis of past due loans segregated by class of loans as of the dates presented:


	December 31, 2025
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Nonaccrual		Total Past Due Loans		Total Loans
Commercial real estate	$	2,906,576	$	—	$	—	$	15,185	$	15,185	$	2,921,761
Commercial and industrial	1,305,388		311		—		24,906		25,217		1,330,605
Commercial construction	364,508		—		—		869		869		365,377
Business banking	1,308,368		999		2,920		3,576		7,495		1,315,863
Consumer real estate	2,028,472		3,281		4,454		10,864		18,599		2,047,071
Other consumer	90,503		604		15		158		777		91,280
Total	$	8,003,815	$	5,195	$	7,389	$	55,558	$	68,142	$	8,071,957


	December 31, 2024
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Nonaccrual		Total Past Due Loans		Total Loans
Commercial real estate	$	2,705,303	$	—	$	—	$	3,228	$	3,228	$	2,708,531
Commercial and industrial	1,338,053		415		1,996		11,173		13,584		1,351,637
Commercial construction	340,230		—		1,036		—		1,036		341,266
Business banking	1,297,651		2,336		283		2,988		5,607		1,303,258
Consumer real estate	1,918,150		2,464		2,577		10,318		15,359		1,933,509
Other consumer	104,156		216		155		230		601		104,757
Total	$	7,703,543	$	5,431	$	6,047	$	27,937	$	39,415	$	7,742,958

The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented:


	December 31, 2025
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	3,228	$	15,185	$	14,936	$	123
Commercial and industrial	11,173		24,906		12,585		202
Commercial construction	—		869		—		581
Business banking	2,988		3,576		—		198
Consumer real estate	10,318		10,864		—		592
Other consumer	230		158		—		3
Total	$	27,937	$	55,558	$	27,521	$	1,699

(1) Represents only cash payments received and applied to interest on nonaccrual loans.


	December 31, 2024
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	6,320	$	3,228	$	984	$	116
Commercial and industrial	878		11,173		311		85
Commercial construction	4,960		—		—		700
Business banking	4,147		2,988		—		93
Consumer real estate	6,312		10,318		—		392
Other consumer	330		230		—		3
Total	$	22,947	$	27,937	$	1,295	$	1,389

(1) Represents only cash payments received and applied to interest on nonaccrual loans.

The following tables present loans that are individually evaluated and collateral-dependent as of the dates presented:


	December 31, 2025
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets
Commercial real estate	$	14,936	$	—
Commercial and industrial	—		24,835




Total	$	14,936	$	24,835


	December 31, 2024
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets
Commercial real estate	$	2,028	$	—
Commercial and industrial	—		9,937




Total	$	2,028	$	9,937

The following tables present activity in the ACL for the periods presented:



	Twelve Months Ended December 31, 2025
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	30,254	$	37,084	$	4,893	$	10,681	$	15,776	$	2,806	$	101,494

Provision for credit losses on loans(1)	6,306		(2,902)		(384)		1,618		719		825		6,182
Charge-offs	(7,339)		(6,723)		(118)		(1,114)		(828)		(1,953)		(18,075)
Recoveries	136		1,683		9		150		630		969		3,577
Net (Charge-offs) Recoveries	(7,203)		(5,040)		(109)		(964)		(198)		(984)		(14,498)
Balance at End of Period	$	29,357	$	29,142	$	4,400	$	11,335	$	16,297	$	2,647	$	93,178
(1) Excludes the provision for credits losses for unfunded commitments.


	Twelve Months Ended December 31, 2024
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	37,886	$	34,538	$	5,382	$	12,858	$	14,663	$	2,639	$	107,966

Provision for credit losses on loans(1)	(4,295)		3,939		(489)		(627)		2,184		1,097		1,809
Charge-offs	(5,205)		(2,436)		—		(1,745)		(1,348)		(1,454)		(12,188)
Recoveries	1,868		1,043		—		195		277		524		3,907
Net Charge-offs	(3,337)		(1,393)		—		(1,550)		(1,071)		(930)		(8,281)
Balance at End of Period	$	30,254	$	37,084	$	4,893	$	10,681	$	15,776	$	2,806	$	101,494
(1) Excludes the provision for credits losses for unfunded commitments.