Company: STBA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000719220-25-000028
Chunk: 49

Company: S&T BANCORP INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 49
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 financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies.

The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

The following table reconciles interest and dividend income and net interest income per the Condensed Consolidated Statements of Comprehensive Income to interest income, net interest income and net interest margin on an FTE basis (non-GAAP) for the periods presented:

Three Months Ended March 31,(dollars in thousands)20252024Total Interest and Dividend Income$124,848 $127,754 Plus: taxable equivalent adjustment617 692 Interest and Dividend Income on an FTE Basis (Non-GAAP)$125,465 $128,446 Total Interest and Dividend Income$124,848 $127,754 Less: Interest expense(41,525)(44,277)Net Interest Income83,323 83,477 Plus: taxable equivalent adjustment617 692 Net Interest Income on an FTE Basis (Non-GAAP)$83,940 $84,169 Net interest margin3.78 %3.81 %Plus: taxable equivalent adjustment0.03 %0.03 %Net Interest Margin on an FTE Basis (Non-GAAP)3.81 %3.84 %

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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

Return on average tangible shareholders' equity (non-GAAP) is a key profitability metric used by management to measure financial performance. The following table provides a reconciliation of return on average tangible shareholders' equity (non-GAAP) by reconciling net income (GAAP) per the Condensed Consolidated Statements of Comprehensive Income to net income before amortization of intangibles and average shareholder's equity to average tangible shareholders' equity for the periods presented:

Three Months Ended March 31,(dollars in thousands)202520