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Regulatory Matters
 12 Months Ended
Dec. 31, 2016
Banking and Thrift [Abstract]  
Regulatory Matters
REGULATORY MATTERS
We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. Under capital guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about risk weightings and other factors.
The most recent notifications from the Federal Reserve and the FDIC categorized S&T and S&T Bank as well capitalized under the regulatory framework for corrective action. There have been no conditions or events that we believe have changed S&T or S&T Bank’s status during 2016 and 2015.
Common equity tier 1 capital includes common stock and related surplus plus retained earnings, less goodwill and intangible assets subject to a limitation and certain deferred tax assets subject to a limitation. In addition, we made a one-time permanent election to exclude accumulated other comprehensive income from capital. For regulatory purposes, trust preferred securities totaling $20.0 million, issued by an unconsolidated trust subsidiary of S&T underlying junior subordinated debt, are included in Tier 1 capital for S&T. Total capital consists of Tier 1 capital plus junior subordinated debt and the ALL subject to limitation. We currently have $25.0 million in junior subordinated debt which is included in Tier 2 capital for S&T in accordance with current regulatory reporting requirements.
Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. As of December 31, 2016 and 2015, we met all capital adequacy requirements to which we are subject.
The following table summarizes risk-based capital amounts and ratios for S&T and S&T Bank:
 
Actual
 
Minimum
Regulatory Capital
Requirements
 
To be
Well Capitalized
Under Prompt
Corrective Action
Provisions
(dollars in thousands)
Amount

Ratio

 
Amount

Ratio

 
Amount

Ratio

As of December 31, 2016
 
 
 
 
 
 
 
 
Leverage Ratio
 
 
 
 
 
 
 
 
S&T
$
582,155

8.98
%
 
$
259,170

4.00
%
 
$
323,963

5.00
%
S&T Bank
542,048

8.39
%
 
258,460

4.00
%
 
323,075

5.00
%
Common Equity Tier 1 (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
562,155

10.04
%
 
252,079

4.50
%
 
364,114

6.50
%
S&T Bank
542,048

9.71
%
 
251,213

4.50
%
 
362,864

6.50
%
Tier 1 Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
582,155

10.39
%
 
336,105

6.00
%
 
448,140

8.00
%
S&T Bank
542,048

9.71
%
 
334,951

6.00
%
 
446,601

8.00
%
Total Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
664,184

11.86
%
 
448,140

8.00
%
 
560,175

10.00
%
S&T Bank
622,469

11.15
%
 
446,602

8.00
%
 
558,252

10.00
%
As of December 31, 2015
 
 
 
 
 
 
 
 
Leverage Ratio
 
 
 
 
 
 
 
 
S&T
$
535,234

8.96
%
 
$
238,841

4.00
%
 
$
298,551

5.00
%
S&T Bank
502,114

8.43
%
 
238,121

4.00
%
 
297,651

5.00
%
Common Equity Tier 1 (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
515,234

9.77
%
 
237,315

4.50
%
 
342,788

6.50
%
S&T Bank
502,114

9.55
%
 
236,482

4.50
%
 
341,584

6.50
%
Tier 1 Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
535,234

10.15
%
 
316,419

6.00
%
 
421,892

8.00
%
S&T Bank
502,114

9.55
%
 
315,309

6.00
%
 
420,412

8.00
%
Total Capital (to Risk-Weighted Assets)
 
 
 
 
 
 
 
 
S&T
611,859

11.60
%
 
421,892

8.00
%
 
527,366

10.00
%
S&T Bank
577,824

11.00
%
 
420,412

8.00
%
 
525,515

10.00
%