Company: STBA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000719220-25-000013
Chunk: 75

Company: S&T BANCORP INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 75
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 3.82 percent compared to 4.13 percent in 2023. The decreases in net interest income and NIM on an FTE basis (non-GAAP) were primarily due to the impact of higher interest rates on total interest-bearing liabilities. While higher interest rates positively impacted interest income and rates on interest-earning assets, it was more than offset by higher interest expense and rates on interest-bearing liabilities. Strong customer deposit growth in 2024 has helped to improve our overall funding mix by reducing borrowings.

Interest income on an FTE basis (non-GAAP) increased $38.1 million to $518.6 million in 2024 compared to $480.5 million in 2023. The increase in interest income on an FTE basis (non-GAAP) was primarily due to higher interest rates on interest earning assets. The average yield on loan balances increased 20 basis points compared to 2023 due to higher interest rates. Average loan balances increased $0.3 billion to $7.7 billion in 2024 compared to $7.4 billion in 2023. Overall, the FTE rate (non-GAAP) on interest-earning assets increased 23 basis points compared to 2023.

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Table of ContentsS&T BANCORP, INC. AND SUBSIDIARIESItem 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Interest expense increased $52.6 million to $181.1 million in 2024 compared to $128.5 million in 2023. The increase in interest expense was primarily due to higher interest rates, a shift in our customer deposit mix to higher costing products and an increase in deposit balances. Average interest-bearing deposits increased $0.7 billion to $5.5 billion in 2024, with $189.7 million of brokered deposits compared to $4.8 billion in 2023. Average borrowings decreased $231.1 million to $353.2 million in 2024 compared to $584.3 in 2023 primarily due to an increase in deposits. Overall, the cost of interest-bearing liabilities increased 75 basis points in 2024 compared to 2023. 

The following table sets forth for the periods presented a summary of the changes in interest earned and interest paid resulting from changes in volume and changes in rates:

2024 Compared to 2023Increase (Decrease) Due to2023 Compared to