S&T BANCORP INCSTBA
S&T BANCORP INC Fair Value Disclosure
FAIR VALUE MEASUREMENTS
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at the dates presented:
| December 31, 2025 | |||||||||||||||||||||||
| (dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| U.S. Treasury securities | $ | 84,507 | $ | — | $ | — | $ | 84,507 | |||||||||||||||
Collateralized mortgage obligations of U.S. government corporations and agencies(1) | — | 624,263 | — | 624,263 | |||||||||||||||||||
Residential mortgage-backed securities of U.S. government corporations and agencies(1) | — | 31,336 | — | 31,336 | |||||||||||||||||||
| Commercial mortgage-backed securities of U.S. government corporations and agencies | — | 241,262 | — | 241,262 | |||||||||||||||||||
| Obligations of states and political subdivisions | — | 4,909 | — | 4,909 | |||||||||||||||||||
| Total Available-for-Sale Debt Securities | 84,507 | 901,770 | — | 986,277 | |||||||||||||||||||
| Equity securities | 1,382 | — | — | 1,382 | |||||||||||||||||||
| Total Securities Available for Sale | 85,889 | 901,770 | — | 987,659 | |||||||||||||||||||
| Securities held in a deferred compensation plan | 14,212 | — | — | 14,212 | |||||||||||||||||||
| Derivative financial assets: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | — | 33,669 | — | 33,669 | |||||||||||||||||||
| Interest rate lock commitments - mortgage loans | — | — | 81 | 81 | |||||||||||||||||||
| Total Assets | $ | 100,101 | $ | 935,439 | $ | 81 | $ | 1,035,621 | |||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Derivative financial liabilities: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | $ | — | $ | 33,990 | $ | — | $ | 33,990 | |||||||||||||||
| Interest rate swap contracts - cash flow hedge | — | 2,024 | — | 2,024 | |||||||||||||||||||
| Total Liabilities | $ | — | $ | 36,014 | $ | — | $ | 36,014 | |||||||||||||||
(1)Collateralized mortgage obligations and residential mortgage backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| (dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| U.S. Treasury securities | $ | 92,768 | $ | — | $ | — | $ | 92,768 | |||||||||||||||
| Obligations of U.S. government corporations and agencies | — | 15,071 | — | 15,071 | |||||||||||||||||||
Collateralized mortgage obligations of U.S. government corporations and agencies(1) | — | 596,284 | — | 596,284 | |||||||||||||||||||
Residential mortgage-backed securities of U.S. government corporations and agencies(1) | — | 33,207 | — | 33,207 | |||||||||||||||||||
| Commercial mortgage-backed securities of U.S. government corporations and agencies | — | 224,798 | — | 224,798 | |||||||||||||||||||
| Obligations of states and political subdivisions | — | 24,287 | — | 24,287 | |||||||||||||||||||
| Total Available-for-Sale Debt Securities | 92,768 | 893,647 | — | 986,415 | |||||||||||||||||||
| Equity securities | 1,176 | — | — | 1,176 | |||||||||||||||||||
| Total Securities Available for Sale | 93,944 | 893,647 | — | 987,591 | |||||||||||||||||||
| Securities held in a deferred compensation plan | 10,876 | — | — | 10,876 | |||||||||||||||||||
| Derivative financial assets: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | — | 60,890 | — | 60,890 | |||||||||||||||||||
| Total Assets | $ | 104,820 | $ | 954,537 | $ | — | $ | 1,059,357 | |||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Derivative financial liabilities: | |||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | $ | — | $ | 61,271 | $ | — | $ | 61,271 | |||||||||||||||
| Interest rate swap contracts - cash flow hedge | — | 9,589 | — | 9,589 | |||||||||||||||||||
| Total Liabilities | $ | — | $ | 70,860 | $ | — | $ | 70,860 | |||||||||||||||
(1)Collateralized mortgage obligations and residential mortgage backed securities consist primarily of securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. | |||||||||||||||||||||||
Assets Recorded at Fair Value on a Nonrecurring Basis
We may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. These assets and liabilities are recorded at the lower of cost or fair value in our consolidated financial statements and are remeasured only when events or circumstances indicate impairment. There were no liabilities measured at fair value on a nonrecurring basis at both December 31, 2025 and December 31, 2024. There was $10.6 million Level 3 and $5.3 million Level 2 individually evaluated loans measured at fair value on a nonrecurring basis during the year ended December 31, 2025. During the year ended December 31, 2024, individually evaluated loans of $6.8 million were measured at fair value and classified as Level 3 on a nonrecurring basis.
Significant unobservable inputs used in the fair value measurements of Level 3 assets on a nonrecurring basis during the years ended December 31, 2025 and December 31, 2024 were as follows:
| 2025 | Valuation Technique | Significant Unobservable Inputs | Range(2) | Weighted Average | |||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Loans individually evaluated | $10,641 | Collateral based valuation | Collateral adjustments(1) | 10.00% | - | 10.00% | 10.00% | ||||||||||||||||||||||||||||
(1)Represents discount adjustments to collateral values related to anticipated collection rates of accounts receivable based on management judgment. | |||||||||||||||||||||||||||||||||||
(2)Represents the collateral adjustment of one loan | |||||||||||||||||||||||||||||||||||
| 2024 | Valuation Technique | Significant Unobservable Inputs | Range | Weighted Average | |||||||||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Loans individually evaluated | $6,830 | Appraisals of collateral | Appraisal adjustments(1) | 20.00% | - | 75.00% | 63.06% | ||||||||||||||||||||||||||||
(1)Represents discount adjustments to appraised values related to market conditions and liquidation estimates based on management judgment. | |||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments
The following tables present the carrying values and fair values of our financial instruments at the dates presented:
Carrying Value(1) | Fair Value Measurements at December 31, 2025 | ||||||||||||||||||||||||||||
| (dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and due from banks, including interest-bearing deposits | $ | 163,436 | $ | 163,436 | $ | 163,436 | $ | — | $ | — | |||||||||||||||||||
| Securities available for sale | 987,659 | 987,659 | 85,889 | 901,770 | — | ||||||||||||||||||||||||
| Loans held for sale | 1,010 | 1,010 | — | 1,010 | |||||||||||||||||||||||||
| Portfolio loans, net | 7,978,779 | 7,807,824 | — | — | 7,807,824 | ||||||||||||||||||||||||
| Collateral receivable | 2 | 2 | 2 | — | — | ||||||||||||||||||||||||
| Securities held in a deferred compensation plan | 14,212 | 14,212 | 14,212 | — | — | ||||||||||||||||||||||||
| Mortgage servicing rights | 5,034 | 8,034 | — | — | 8,034 | ||||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | 33,669 | 33,669 | — | 33,669 | — | ||||||||||||||||||||||||
| Interest rate lock commitments - mortgage loans | 81 | 81 | — | — | 81 | ||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Deposits | $ | 7,958,831 | $ | 7,956,632 | $ | 6,010,039 | $ | 1,946,593 | $ | — | |||||||||||||||||||
| Collateral payable | 26,964 | 26,964 | 26,964 | — | — | ||||||||||||||||||||||||
| Short-term borrowings | 165,000 | 165,000 | — | 165,000 | — | ||||||||||||||||||||||||
| Long-term borrowings | 50,815 | 50,856 | — | 50,856 | — | ||||||||||||||||||||||||
| Junior subordinated debt securities | 49,478 | 49,478 | — | 49,478 | — | ||||||||||||||||||||||||
| Interest rate swap contracts - commercial loans | 33,990 | 33,990 | — | 33,990 | — | ||||||||||||||||||||||||
| Interest rate swap contracts - cash flow hedge | 2,024 | 2,024 | — | 2,024 | — | ||||||||||||||||||||||||
(1) As reported in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||
Carrying Value(1) | Fair Value Measurements at December 31, 2024 | ||||||||||||||||||||||||||||
| (dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Cash and due from banks, including interest-bearing deposits | $ | 244,820 | $ | 244,820 | $ | 244,820 | $ | — | $ | — | |||||||||||||||||||
| Securities available for sale | 987,591 | 987,591 | 93,944 | 893,647 | — | ||||||||||||||||||||||||
| Portfolio loans, net | 7,641,464 | 7,362,898 | — | — | 7,362,898 | ||||||||||||||||||||||||
| Collateral receivable | 2,034 | 2,034 | 2,034 | — | — | ||||||||||||||||||||||||
| Securities held in a deferred compensation plan | 10,876 | 10,876 | 10,876 | — | — | ||||||||||||||||||||||||
| Mortgage servicing rights | 5,646 | 8,533 | — | — | 8,533 | ||||||||||||||||||||||||
| Interest rate swaps - commercial loans | 60,890 | 60,890 | — | 60,890 | — | ||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||
| Deposits | $ | 7,783,117 | $ | 7,778,740 | $ | 5,916,154 | $ | 1,862,586 | $ | — | |||||||||||||||||||
| Collateral payable | 52,516 | 52,516 | 52,516 | — | — | ||||||||||||||||||||||||
| Short-term borrowings | 150,000 | 150,000 | — | 150,000 | — | ||||||||||||||||||||||||
| Long-term borrowings | 50,896 | 50,652 | — | 50,652 | — | ||||||||||||||||||||||||
| Junior subordinated debt securities | 49,418 | 49,418 | — | 49,418 | — | ||||||||||||||||||||||||
| Interest rate swaps - commercial loans | 61,271 | 61,271 | — | 61,271 | — | ||||||||||||||||||||||||
| Interest rate swaps - cash flow hedge | 9,589 | 9,589 | — | 9,589 | — | ||||||||||||||||||||||||
(1) As reported in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2015 | Feb 23, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.