Regulatory Matters

12 Months Ended

Dec. 31, 2025

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.

Under the applicable capital rules, S&T and S&T Bank are subject to the following risk-based capital ratios: a common equity tier 1, or “CET1”, risk-based capital ratio, a Tier 1 risk-based capital ratio, which includes CET1 and additional Tier 1 capital, and a total capital ratio which includes Tier 1 and Tier 2 capital. CET1 is primarily comprised of the sum of common stock instruments and related surplus net of treasury stock, retained earnings, and certain qualifying minority interests, less certain adjustments and deductions, including with respect to goodwill, intangible assets, mortgage servicing assets and deferred tax assets subject to temporary timing differences. Additional Tier 1 capital is primarily comprised of noncumulative perpetual preferred stock, tier 1 minority interests and grandfathered trust preferred securities, if applicable. Tier 2 capital consists of instruments disqualified from Tier 1 capital, including qualifying subordinated debt, certain trust preferred securities, other preferred stock and certain hybrid capital instruments, and a limited amount of loan loss reserves up to a maximum of 1.25 percent of risk-weighted assets, subject to certain eligibility criteria.

The capital rules require a minimum CET1 risk-based capital ratio of 4.5 percent, a minimum overall Tier 1 risk based capital ratio of 6.0 percent, and a total risk-based capital ratio of 8.0 percent. In addition, the capital rules require a capital conservation buffer of 2.5 percent above each of the minimum capital ratio requirements (CET1, Tier 1, and total risk-based capital), which must be met for a bank or bank holding company to be able to pay dividends, engage in share buybacks or make discretionary bonus payments to executive management without automatic restrictions. The capital conservation buffer is 2.50 percent, so a banking organization needs to maintain a CET1 capital ratio of at least 7 percent, a total Tier 1 capital ratio of at least 8.5 percent and a total risk-based capital ratio of at least 10.5 percent or it would be subject to restrictions on capital distributions and discretionary bonus payments to its executive management.

The leverage capital ratio, which serves as a minimum capital standard, is the ratio of Tier 1 capital to quarterly average total assets, less goodwill and other disallowed intangible assets. The required minimum leverage ratio for all banks and bank holding companies is 4 percent.

To be well-capitalized, we must maintain the following capital ratios:

•CET1 risk-based capital ratio of 6.5 percent or greater;

•Tier 1 risk-based capital ratio of 8.0 percent or greater;

•Total risk-based capital ratio of 10.0 percent or greater; and

•Tier 1 leverage ratio of 5.0 percent or greater.

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, 2025
Leverage Ratio
S&T	$	1,154,736	12.18	%	$	379,316	4.00	%	$	474,146	5.00	%
S&T Bank	1,128,495		11.91	%	379,139		4.00	%	473,923		5.00	%
Common Equity Tier 1 ratio
S&T	1,130,736		14.32	%	355,419		4.50	%	513,383		6.50	%
S&T Bank	1,128,495		14.30	%	355,206		4.50	%	513,076		6.50	%
Tier 1 Capital (to Risk-Weighted Assets)
S&T	1,154,736		14.62	%	473,892		6.00	%	631,856		8.00	%
S&T Bank	1,128,495		14.30	%	473,608		6.00	%	631,478		8.00	%
Total Capital (to Risk-Weighted Assets)
S&T	1,278,474		16.19	%	631,856		8.00	%	789,821		10.00	%
S&T Bank	1,252,175		15.86	%	631,478		8.00	%	789,347		10.00	%
As of December 31, 2024
Leverage Ratio
S&T	$	1,112,126	11.98	%	$	371,211	4.00	%	$	464,014	5.00	%
S&T Bank	1,060,010		11.43	%	371,002		4.00	%	463,752		5.00	%
Common Equity Tier 1 ratio
S&T	1,088,126		14.58	%	335,888		4.50	%	485,172		6.50	%
S&T Bank	1,060,010		14.21	%	335,722		4.50	%	484,932		6.50	%
Tier 1 Capital (to Risk-Weighted Assets)
S&T	1,112,126		14.90	%	447,851		6.00	%	597,134		8.00	%
S&T Bank	1,060,010		14.21	%	447,629		6.00	%	596,839		8.00	%
Total Capital (to Risk-Weighted Assets)
S&T	1,230,497		16.49	%	597,134		8.00	%	746,418		10.00	%
S&T Bank	1,178,335		15.79	%	596,839		8.00	%	746,049		10.00	%

As of December 31, 2025 and 2024, S&T’s and S&T Bank’s regulatory capital ratios were above the well-capitalized standards and met the fully phased-in capital conservation buffer.