STBA S & T Bancorp Dashboard

Risks

• The duration and severity of the COVID-19 pandemic, in our principal area of operations, nationally and globally, has adversely impacted and will likely continue to adversely impact S&T’s business, results of operations and financial condition. While it is difficult to predict the further impact of the COVID-19 pandemic (or any other outbreak) on the economy and S&T, the future impacts may include, but are not limited to, the following:
• The impact that the COVID-19 pandemic will have on S&T’s credit losses is uncertain, and continued economic uncertainty and deterioration in the forward looking economic forecasts used to estimate credit losses, as well as the potential inability of our credit models to accurately predict the relevant financial metrics, may adversely affect our ACL.
• 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.
• Our ability to assess the credit-worthiness of our customers may diminish, which may adversely affect our results of operations.
• The value of the collateral used to secure our loans may not be sufficient to compensate for the amount of an unpaid loans and we may be unsuccessful in recovering the remaining balances from our customers.
• Changes in the overall credit quality of our portfolio can have a significant impact on our earnings.
• The adoption of ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, referred to as CECL, effective for us on January 1, 2020, resulted in a significant change in how we recognize credit losses. If the assumptions or estimates we used in adopting the new standard are incorrect or we need to change our underlying assumptions, there may be a material adverse impact on our results of operations and financial condition.
• Our loan portfolio is concentrated within our market area, and our lack of geographic diversification increases our risk profile.
• Our loan portfolio has a significant concentration of commercial real estate loans.
• Failure to keep pace with technological changes could have a material adverse effect on our results of operations and financial condition.
• A failure in or breach of our operational or security systems or infrastructure, or those of third parties, could disrupt our businesses, and adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.
• A cyber attack, information or security breach, or a technology failure of ours or of a third-party could adversely affect our ability to conduct our business or manage our exposure to risk, result in the disclosure or misuse of confidential or proprietary information, increase our costs to maintain and update our operational and security systems and infrastructure, and adversely impact our results of operations, liquidity and financial condition, as well as cause reputational harm.
• We rely on third-party providers and other suppliers for a number of services that are important to our business. An interruption or cessation of an important service by any third-party could have a material adverse effect on our business.
• Our net interest income could be negatively affected by interest rate changes which may adversely affect our financial condition.
• Declines in the value of investment securities held by us could require write-downs, which would reduce our earnings.
• Our 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.
• We are subject to competition from both banks and non-banking companies.
• We 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.
• We are subject to extensive governmental regulation and supervision.
• 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.
• Negative public opinion could damage our reputation and adversely impact our earnings and liquidity.
• Our ability to pay dividends on our common stock may be limited
• We rely on a stable core deposit base as our primary source of liquidity.
• Our ability to meet contingency funding needs, in the event of a crisis that causes a disruption to our core deposit base, is dependent on access to wholesale markets, including funds provided by the FHLB of Pittsburgh.
• The market price of our common stock may fluctuate significantly in response to a number of factors.
• We 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.