Company: STBA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000719220-25-000028
Chunk: 83

Company: S&T BANCORP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 83
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 INC. AND SUBSIDIARIESItem 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Three months ended March 31, 2025 Compared to Three months ended March 31, 2024

Net Interest Income

Our principal source of revenue is net interest income. Net interest income represents the difference between the interest and fees earned on interest-earning assets and the interest paid on interest-bearing liabilities. Net interest income is affected by changes in the average balance of interest-earning assets and interest-bearing liabilities and changes in interest rates and spreads. The level and mix of interest-earning assets and interest-bearing liabilities is managed by our Asset and Liability Committee, or ALCO, in order to mitigate interest rate and liquidity risks of the balance sheet. A variety of ALCO strategies were implemented, within prescribed ALCO risk parameters, to produce what we believe is an acceptable level of net interest income.

Average Balance Sheet and Net Interest Income Analysis (FTE) (non-GAAP)

The following tables provide information regarding the average balances, interest and rates earned on interest-earning assets, and interest and rates paid on interest-bearing liabilities for the periods presented:

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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

Three Months Ended March 31, 2025Three Months Ended March 31, 2024(dollars in thousands)Average BalanceInterestRateAverage BalanceInterestRateASSETSInterest-bearing deposits with banks$128,739 $1,416 4.46 %$144,637 $2,066 5.75 %Securities, at fair value(1)(2)990,414 8,875 3.59 %966,703 6,798 2.81 %Loans held for sale— — — %176 3 7.12 %Commercial real estate3,395,599 48,740 5.82 %3,365,142 49,557 5.92 %Commercial and industrial1,535,235 25,319 6.69 %1,626,633 29,768 7.36 %Commercial construction374,881 6,422 6.95 %365,088 6,993 7.70 %Total Commercial