KPMG LLP is resigning as Indiana, Pa.-based S&T Bancorp Inc.'s accounting firm after completing its interim review consolidated financial statements for the quarter ending June 30.
KPMG's reports indicate that S&T Bancorp did not maintain effective internal control over financial reporting as of Dec. 31, 2017. The material weakness that S&T Bancorp disclosed in its annual report for 2017 was reviewed by KPMG with the audit committee, and was related to the inconsistent assessment of internally assigned risk ratings, which is one of several factors used to estimate the allowance for loan losses.
S&T Bancorp's management said it is in the process of remediating this material weakness and has engaged an independent third party to evaluate policies, procedures and resources related to the assessment of risk ratings.
