Company: STBA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000719220-25-000053
Chunk: 57

Company: S&T BANCORP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 the impact of lower interest rates on interest bearing liabilities and an improvement in our overall funding mix. Strong 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 June 30, 2025 and decreased $2.9 million for the six months ended June 30, 2025 compared to the same periods in 2024. The decrease in interest income on an FTE basis (non-GAAP) for the six months ended June 30, 2025 was primarily due to lower interest rates. The average yield on loan balances decreased 26 basis points for both the three and six months ended June 30, 2025 compared to the same periods in 2024. Average loan balances increased $185.0 million and $142.3 million for the three and six months ended June 30, 2025 compared to the same periods in 2024. Partially 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 86 and 82 basis points for the three and six months ended June 30, 2025 compared to the same periods in 2024. Overall, the FTE rate (non-GAAP) on interest-earning assets decreased 15 and 16 basis points for the three and six months ended June 30, 2025 compared to the same periods in 2024.

Interest expense decreased $2.8 million and $5.6 million for the three and six months ended June 30, 2025 compared to the same periods in 2024. The decrease in interest expense was primarily due to lower levels of borrowings and decreased interest rates. Average interest-bearing deposits increased $253.8 million and $269.9 million for the three and six months ended June 30, 2025 compared to the same periods in 2024 primarily due to increases in certificates of deposit and money market balances. Average borrowings decreased $114.4 million and $196.6 million for the three and six months ended June 30,