What the changes say
- S&T Bancorp is adjusting its risk disclosures to highlight emerging threats from remote work cybersecurity, AI-driven fraud, and impending regulatory thresholds above $10 billion in assets.
What changed since the prior 10-K
New
- NewRisks Related to Credit
Changes to our provision for credit losses or ACL could significantly impact our operating results and financial condition
Management's estimates for allowance for credit losses depend on complex judgments and macroeconomic forecasts that may not accurately predict customer defaults.
- NewRisks Related to Our Operations
Failure to keep pace with technological changes and successfully implement current or future information technology system enhancements could have a material adverse effect on our results of operations and financial condition
Failure to keep pace with rapid technological advancements, including artificial intelligence and digital assets, could harm operating efficiency.
- NewRisks Related to Our Operations
Additionally, a number of our employees have the ability to work from remote locations, increasing the number of surfaces that require protection and the overall risks and exposures to cyber threats
Employee remote work arrangements expand our attack surface, increasing cyber security threats and the resources needed to protect systems.
- NewRisks Related to Regulatory Compliance and Legal Matters
As we grow, the heightened expectations of regulatory agencies may expose us to additional regulatory risk and compliance costs
Exceeding $10 billion in total consolidated assets will trigger heightened regulatory requirements and increased compliance costs.
Dropped
- DroppedRisks Related to Credit
Changes in the overall credit quality of our portfolio can have a significant impact on our earnings
- DroppedRisks Related to General Economic Conditions
Financial 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
- DroppedRisks Related to General Economic Conditions
S&T BANCORP, INC. AND SUBSIDIARIES
Credit quality changes impacting earnings.
- DroppedRisks Related to Our Operations
Failure to keep pace with technological changes could have a material adverse effect on our results of operations and financial condition
Reworded
- 90% rewrittenRisks Related to Regulatory Compliance and Legal Matters
Our business could be negatively impacted by complex, evolving, and conflicting environmental, social and governance, or ESG, regulations and expectations, including climate change and related legislative and regulatory initiatives
Updated to address complex federal actions on ESG, noting risks from varied stakeholder expectations and potential regulatory enforcement or investigation.
Was: Our business could be negatively impacted by environmental, social and governance, or ESG, matters, including climate change and related legislative and regulatory initiatives
- 75% rewrittenRisks Related to General Economic Conditions
We 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
Punctuation adjustment regarding global interest rate impacts from international monetary policies.
- 43% rewrittenRisks Related to General Economic Conditions
General economic conditions may adversely impact our business, financial condition, results of operations or cash flows
Punctuation adjustment regarding macroeconomic conditions affecting customer credit quality.
- 42% rewrittenRisks Related to Our Business Strategy
We are subject to competition from both banks and non-banking companies
Maintained description of intense competition from larger financial institutions and non-bank online providers.
- 33% rewrittenRisks Related to Our Operations
We 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
Minor punctuation revision regarding third-party technology provider risks.
- 31% rewrittenRisks Related to Our Operations
Fraudulent activity associated with our products and services could adversely affect our results of operations, financial condition and stock price, negatively impact our brand and result in regulatory intervention or sanctions
Added specific mention of generative artificial intelligence enabling automated fraudulent schemes, synthetic media, and social engineering attacks.
Was: Fraudulent 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
- 25% rewrittenRisks Related to General Economic Conditions
Geopolitical tensions and conflicts between nations have created significant economic and financial disruptions and uncertainties which could adversely affect our business, financial condition and results of operations
Added rising tensions between the United States and Venezuela to existing geopolitical conflicts involving Russia and the Middle East.
Was: Geopolitical 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
- 23% rewrittenRisks Related to Regulatory Compliance and Legal Matters
Our 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
Added disclosure that the risk management framework has inherent limitations and may fail to identify or anticipate future risks.
- 21% rewrittenRisks Related to Regulatory Compliance and Legal Matters
Negative public opinion could damage our brand and adversely impact our results of operations and liquidity
Was: Negative public opinion could damage our reputation and adversely impact our earnings and liquidity
All 27 risk factors
Headings as the filing states them, in filing order.
Risks Related to Credit
- 01Our ability to assess the credit-worthiness of our customers may diminish which may adversely affect our results of operations
- 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
- 03Changes to our provision for credit losses or ACL could significantly impact our operating results and financial conditionNew
- 04Our loan portfolio is concentrated within our market area, and our lack of geographic diversification increases our risk profile
- 05Our loan portfolio has a significant concentration of commercial loans that have a higher risk of loss
Risks Related to General Economic Conditions
- 06General economic conditions may adversely impact our business, financial condition, results of operations or cash flows43% rewritten
- 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 operations75% rewritten
- 08Geopolitical tensions and conflicts between nations have created significant economic and financial disruptions and uncertainties which could adversely affect our business, financial condition and results of operations25% rewritten
Risks Related to Our Operations
- 09Failure to keep pace with technological changes and successfully implement current or future information technology system enhancements could have a material adverse effect on our results of operations and financial conditionNew
- 10Additionally, a number of our employees have the ability to work from remote locations, increasing the number of surfaces that require protection and the overall risks and exposures to cyber threatsNew
- 11Fraudulent activity associated with our products and services could adversely affect our results of operations, financial condition and stock price, negatively impact our brand and result in regulatory intervention or sanctions31% rewritten
- 12We 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 business33% rewritten
- 13Failure 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
- 14Our 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
- 15We are subject to competition from both banks and non-banking companies42% rewritten
- 16We 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
- 17Our net interest income could be negatively affected by interest rate changes which may adversely affect our financial condition and results of operations
- 18Declines in the value of investment securities held by us could require write-downs which may adversely affect our financial condition and results of operations
Risks Related to Regulatory Compliance and Legal Matters
- 19We are subject to extensive governmental regulation and supervision
- 20As we grow, the heightened expectations of regulatory agencies may expose us to additional regulatory risk and compliance costsNew
- 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 operations23% rewritten
- 22Negative public opinion could damage our brand and adversely impact our results of operations and liquidity21% rewritten
- 23Our ability to pay dividends on our common stock may be limited
- 24Our business could be negatively impacted by complex, evolving, and conflicting environmental, social and governance, or ESG, regulations and expectations, including climate change and related legislative and regulatory initiatives90% rewritten
Risks Related to Liquidity
- 25We rely on a stable core deposit base as our primary source of liquidity
Risks Related to Owning Our Stock
- 26The market price of our common stock may fluctuate significantly in response to a number of factors
- 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
Other S&t Bancorp 10-Ks
- FY2024 10-K risk factors27 risks
Credit risk and commercial loan concentration dominate S&T Bancorp's risk profile. Geographic market restriction amplifies vulnerability to local economic downturns. Regulatory, interest rate, and liquidity pressures heavily impact banking operations.
Filed Mar 03, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.