Company: STBA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000719220-25-000053
Chunk: 51

Company: S&T BANCORP INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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 in 2024. The increase of $0.2 million related to no security losses for the three months ended June 30, 2025 compared to $3.2 million of losses in the same period in the prior year offset by a $2.9 million decline in other noninterest income primarily related to a fair value adjustment of $3.2 million from the Visa exchange offer for Visa Class B-1 common stock in the three months ended June 30, 2024. The $2.2 million decrease in noninterest income for the six months ended June 30, 2025 was primarily related to the fair value adjustment of $3.2 million for the Visa exchange offer offset by lower losses on securities in the six months ended June 30, 2025. 

Noninterest expense increased $4.5 million, or 8.41 percent, and $5.1 million, or 4.70 percent, for the three and six months ended June 30, 2025 compared to the same periods in 2024. The most significant change in noninterest expense related to salaries and employee benefits which increased $2.5 million and $2.9 million for the three and six months ended June 30, 2025 compared to the same periods in 2024 due to annual merit increases, higher incentives and increased medical costs.

Our effective tax rate was 20.2 percent and 20.1 percent for the three and six months ended June 30, 2025 compared to 19.8 percent and 20.0 percent for the three and six months ended June 30, 2024. The increase in the effective tax rate for the three and six months ended June 30, 2025 was primarily due to a decrease in tax-exempt interest income partially offset by an increase in low-income housing tax credits compared to the same period in 2024.

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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 and six months ended June 30, 2025 Compared to Three and six months ended June 30, 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