S&t Bancorp (STBA) risk factors, FY2024 10-K

Risks Related to Credit

1. 01Our ability to assess the credit-worthiness of our customers may diminish, which may adversely affect our results of operations
2. 02The value of the collateral used to secure our loans may not be sufficient to compensate for the amount of unpaid loans and we may be unsuccessful in recovering the remaining balances from our customers
3. 03Changes in the overall credit quality of our portfolio can have a significant impact on our earnings
4. 04Our loan portfolio is concentrated within our market area, and our lack of geographic diversification increases our risk profile
5. 05Our loan portfolio has a significant concentration of commercial loans that have a higher risk of loss

Risks Related to General Economic Conditions

1. 06General economic conditions may adversely impact our business, financial condition, results of operations or cash flows
2. 07We may not accurately predict the nature and timing of the policies of the Federal Reserve and other governmental agencies and their impact on interest rates and financial markets, which could negatively impact our financial condition and results of operations
3. 08Financial challenges at other banking institutions and further adverse developments affecting the financial services industry, and the soundness of financial institutions, and further disruption to the economy and U.S. banking system may adversely affect our business, results of operations, liquidity and stock price
4. 09S&T BANCORP, INC. AND SUBSIDIARIES
5. 10Geopolitical tensions and conflicts between nations has created significant economic and financial disruptions and uncertainties, which could adversely affect our business, financial condition and results of operations

Risks Related to Our Operations

1. 11Failure to keep pace with technological changes could have a material adverse effect on our results of operations and financial condition
2. 12Fraudulent activity associated with our products and services could adversely affect our results of operations, financial condition and stock price, negatively impact our brand and reputation and result in regulatory intervention or sanctions
3. 13We rely on certain critical third-party providers for a number of services that are important to our business. An interruption or cessation of an important service by any critical third-party provider could have a material adverse effect on our business
4. 14Failure to continue to attract, develop, and maintain a highly skilled workforce may have an adverse effect on our business

Risks Related to Our Business Strategy

1. 15Our strategy includes growth plans through organic growth and by means of acquisitions. Our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively
2. 16We are subject to competition from both banks and non-banking companies
3. 17We may be required to raise capital in the future, but that capital may not be available or may not be on acceptable terms when it is needed

Risks Related to Interest Rates and Investments

1. 18Our net interest income could be negatively affected by interest rate changes which may adversely affect our financial condition
2. 19Declines in the value of investment securities held by us could require write-downs, which would reduce our earnings

Risks Related to Regulatory Compliance and Legal Matters

1. 20We are subject to extensive governmental regulation and supervision
2. 21Our controls and policies and procedures may fail or be circumvented, which may result in a material adverse effect on our business, financial condition and results of operations
3. 22Negative public opinion could damage our reputation and adversely impact our earnings and liquidity
4. 23Our ability to pay dividends on our common stock may be limited
5. 24Our business could be negatively impacted by environmental, social and governance, or ESG, matters, including climate change and related legislative and regulatory initiatives

Risks Related to Liquidity

1. 25We rely on a stable core deposit base as our primary source of liquidity

Risks Related to Owning Our Stock

1. 26The market price of our common stock may fluctuate significantly in response to a number of factors
2. 27We may be a defendant from time to time in a variety of litigation and other actions, which could have a material adverse effect on our financial condition and results of operations