Company: STBA
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000719220-25-000091
Chunk: 57

Company: S&T BANCORP INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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1) Tax-exempt interest income is on an FTE basis (non-GAAP) using the statutory federal corporate income tax rate of 21 percent.

(2) Taxable investment income is adjusted for the dividend-received deduction for equity securities.

(3) Nonaccruing loans are included in the daily average loan amounts outstanding.

Net interest income on an FTE basis (non-GAAP) increased $4.7 million, or 5.5 percent, and $7.4 million, or 2.9 percent, for the three and nine months ended September 30, 2025 compared to the same periods in 2024. The NIM on an FTE basis (non-GAAP) increased 11 and 3 basis points for the three and nine months ended September 30, 2025 compared to the same periods in 2024. These improvements in both net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of lower interest rates on interest bearing liabilities, an improvement in our overall funding mix and strong earnings retention. Customer deposit growth in 2024 and 2025 has reduced our levels of borrowings and brokered deposits. 

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Table of ContentsS&T BANCORP, INC. AND SUBSIDIARIESItem 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Interest income on an FTE basis (non-GAAP) remained relatively unchanged for the three months ended September 30, 2025 and decreased $2.9 million for the nine months ended September 30, 2025 compared to the same periods in 2024. The decrease in interest income on an FTE basis (non-GAAP) for the nine months ended September 30, 2025 was primarily due to lower interest rates. The average yield on loan balances decreased 26 basis points for both the three and nine months ended September 30, 2025 compared to the same periods in 2024. Average loan balances increased $276.9 million and $187.7 million for the three and nine months ended September 30, 2025 compared to the same periods in 2024. Offsetting the lower interest income on loans was higher interest income on securities primarily due to the repositioning of $193.6 million of securities during 2024 and 2025. The average yield on securities increased 68 and 77 basis points for the three