11 unchanged sentences
A static balance sheet is a no growth balance sheet in which all maturing and/or repricing cash flows are reinvested in the same product at the existing product spread.
−Removed: Rate shock analyses assume an immediate parallel shift in market interest rates and include management assumptions regarding the impact of interest rate changes on non-maturity deposit products (noninterest-bearing demand, interest-bearing demand, money market and savings) and changes in the prepayment behavior of loans and securities with optionality.
+Added: Rate shock analyses assume an immediate parallel shift in market interest rates and also include management assumptions regarding the impact of interest rate changes on non-maturity deposit products (noninterest-bearing demand, interest-bearing demand, money market and savings) and changes in the prepayment behavior of loans and securities with optionality.
S&T policy guidelines limit the change in pretax net interest income over 12 and 24 month horizons using rate shocks in increments of +/- 100 basis points.
5 unchanged sentences
S&T policy guidelines limit the change in EVE using rate shocks in increments of +/- 100 basis points.
−Removed: Policy guidelines define the percent change in EVE by graduated risk tolerance levels of minimal, moderate, and high.
−Removed: The table below reflects the rate shock analyses results for the 1 to 12 and 13 to 24 month periods of pretax net interest income and EVE.
+Added: Policy guidelines define the percentage change in EVE by graduated risk tolerance levels of minimal, moderate and high.
+Added: The table below reflects the rate shock analyses results for the 1-12 and 13-24 month periods of pretax net interest income and EVE.
December 31, 2023 December 31, 2022
−Removed: 1 - 12 Months 13 - 24 Months 1 - 12 Months 13 - 24 Months
−Removed: Change in Interest
−Removed: Rate (basis points) % Change in
−Removed: Interest Income % Change in
−Removed: Pretax Net Interest Income % Change in EVE % Change in
−Removed: Interest Income % Change in
−Removed: Pretax Net Interest Income % Change in EVE
+Added: 1 - 12 Months 13 - 24 Months % Change in EVE 1 - 12 Months 13 - 24 Months % Change in EVE
+Added: Change in Interest Rate (basis points) % Change in Pretax
+Added: Net Interest Income % Change in
+Added: Net Interest Income % Change in Pretax
+Added: Net Interest Income % Change in Pretax
+Added: Net Interest Income
400 3.5 7.6 (31.4) 14.6 22.0 (13.2)
6 unchanged sentences
-400 (9.3) (15.1) (13.7) (21.1) (30.1) (32.7)
+Added: S&T BANCORP, INC.
+Added: AND SUBSIDIARIES
+Added: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The results from the rate shock analyses on net interest income are consistent with having an asset sensitive balance sheet.
5 unchanged sentences
This situation could result in an increase in net interest income and operating income.
−Removed: S&T BANCORP, INC.
−Removed: AND SUBSIDIARIES
−Removed: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Our rate shock analyses show less improvement in the percentage change in pretax net interest income in the rates up scenarios when comparing December 31, 2022 to December 31, 2021 because we have less excess cash and $500 million of received-fixed interest rate swaps were executed throughout 2022.
−Removed: The percentage change in pretax net interest income in the rates down scenario shows a decline when comparing December 31, 2022 to December 31, 2021 because the higher rate environment has increased our asset yields more than our liability costs.
−Removed: A decline in interest rates would result in less interest income with limited interest expense reduction.
−Removed: Our EVE analyses show a decline in the percentage change in EVE in the rates up scenarios and an improvement in the rates down scenario when comparing December 31, 2022 to December 31, 2021 due to the impact of interest rates on the value of nonmaturity deposits.
+Added: Our rate shock analyses show less improvement in the percentage change in pretax net interest income in the rates up scenarios when comparing December 31, 2023 to December 31, 2022 primarily because we have a different deposit mix, more short-term borrowings and a larger fixed-rate loan portfolio.
+Added: The percentage change in pretax net interest income in the rates down scenario shows an improvement when comparing December 31, 2023 to December 31, 2022 because of our increased ability to cut liability costs as deposit rates have increased and we have more short-term borrowings.
+Added: The changes in our percentage changes in pretax net interest income reflect our strategic efforts to reduce our exposure to changes in interest rates.
+Added: Our EVE analyses show a decline in the percentage change in EVE in the rates up scenarios and an improvement in rates down scenarios when comparing December 31, 2023 to December 31, 2022.
+Added: These changes are mainly the result of the impact of interest rates on the value of nonmaturity deposits and deposit valuation methodology enhancements that recognize changes in customer behavior.
In addition to rate shocks and EVE analyses, we perform a market risk stress test at least annually.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.