Company: STBA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000719220-25-000013
Chunk: 66

Company: S&T BANCORP INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 66
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 Non-GAAP Financial Measures

In addition to traditional financial measures presented in accordance with GAAP, our management uses, and this report contains or references, certain non-GAAP financial measures discussed below. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying business, operational performance and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than 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 Consolidated Statements of Net Income to interest income, net interest income and net interest margin on an FTE basis (non-GAAP) for the periods presented:

Years ended December 31,(dollars in thousands)202420232022Total Interest and Dividend Income$515,872 $477,901 $340,751 Plus: taxable equivalent adjustment2,706 2,550 2,052 Interest and Dividend Income on an FTE Basis (Non-GAAP)$518,578 $480,451 $342,803 Total Interest and Dividend Income$515,872 $477,901 $340,751 Less: Interest expense(181,066)(128,491)(24,968)Net Interest Income334,806 349,410 315,783 Plus: taxable equivalent adjustment2,706 2,550 2,052 Net Interest Income on an FTE Basis (Non-GAAP)$337,512 $351,960 $317,835 Net interest margin3.79 %4.10 %3.74 %Plus: taxable equivalent adjustment0.03 %0.03 %0.