EX-99.1 2 stba-ex991earningspressrel.htm EX-99.1 Document

INVESTOR CONTACT:
Mark Kochvar
S&T Bancorp, Inc.
Chief Financial Officer
724.465.4826
mark.kochvar@stbank.com
earn_image1a15.jpg
FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces First Quarter 2025 Results
INDIANA, Pa., - April 24, 2025 – S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $33.4 million, or $0.87 per diluted share, for the first quarter of 2025 compared to net income of $33.1 million, or $0.86 per diluted share, for the fourth quarter of 2024 and net income of $31.2 million, or $0.81 per diluted share, for the first quarter of 2024.
First Quarter of 2025 Highlights:
•Strong return metrics with return on average assets (ROA) of 1.41%, return on average equity (ROE) of 9.67% and return on average tangible equity (ROTE) (non-GAAP) of 13.29% compared to ROA of 1.37%, ROE of 9.57% and ROTE (non-GAAP) of 13.25% for the fourth quarter of 2024.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.73% compared to 1.72% for the fourth quarter of 2024.
•Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) increased 4 basis points to 3.81% compared to 3.77% in the fourth quarter of 2024.
•Total portfolio loans increased $93.4 million, or 4.89% annualized, compared to December 31, 2024.
•Total deposits increased $109.8 million, with customer deposit growth of $134.7 million, or 7.23% annualized, offset by a decrease in brokered deposits of $24.9 million compared to the fourth quarter of 2024.
•Asset quality remained solid with net recoveries and a negative $3.0 million provision for credit losses compared to a negative $2.5 million in the fourth quarter of 2024.
•Nonperforming assets decreased $5.5 million to $22.4 million, or 0.29% of total loans plus other real estate owned (OREO), compared to $27.9 million, or 0.36%, at December 31, 2024.
"We are pleased to report a strong first quarter driven by solid customer deposit and loan growth, an increase in net interest margin and excellent asset quality," said Chief Executive Officer Chris McComish. "As we navigate the current environment, our focus remains firmly in support of our customers while executing on our growth-oriented business drivers."


- more -

S&T Earnings Release - 2

Net Interest Income
Net interest income was $83.3 million in both the first quarter of 2025 and the fourth quarter of 2024. NIM (FTE) (non-GAAP) increased 4 basis points to 3.81% compared to 3.77% in the prior quarter. The yield on average total interest- earning assets decreased 8 basis points to 5.70% compared to 5.78% in the fourth quarter of 2024 due to lower interest rates. Total average interest-bearing liability costs decreased 16 basis points to 2.87% compared to 3.03% in the fourth quarter of 2024 due to lower deposit costs and a reduction in higher-cost borrowings. Total average borrowings decreased $56.8 million to $218.0 million in the first quarter of 2025 compared to $274.8 million in the fourth quarter of 2024.
Asset Quality
Asset quality remained solid for the first quarter of 2025. The allowance for credit losses, or ACL, was $99.0 million, or 1.26% of total portfolio loans at March 31, 2025 compared to $101.5 million, or 1.31%, at December 31, 2024. The 5 basis point decline in the ACL to total portfolio loans related to a $4.2 million decrease in specific reserves compared to the fourth quarter of 2024. The provision for credit losses was a negative $3.0 million for the first quarter of 2025 compared to a negative $2.5 million in the fourth quarter of 2024. Both the first quarter of 2025 and the fourth quarter of 2024 had net loan recoveries. Nonperforming assets to total portfolio loans plus OREO decreased 7 basis points to 0.29% at March 31, 2025 compared to 0.36% at December 31, 2024.
Noninterest Income and Expense
Noninterest income decreased $0.7 million to $10.4 million in the first quarter of 2025 compared to $11.1 million in the fourth quarter of 2024. Customer activity was seasonally slower in the first quarter of 2025 resulting in lower debit card fees and service charges on deposit accounts. During the first quarter of 2025, a $2.3 million realized loss was recognized related to the repositioning of securities into longer duration, higher-yielding securities compared to a similar $2.6 million realized securities loss in the fourth quarter of 2024. Total noninterest expenses remain consistent at $55.1 million compared to $55.4 million in the fourth quarter of 2024.
Financial Condition
Total assets were $9.7 billion at both March 31, 2025 and December 31, 2024. Total portfolio loans increased $93.4 million, or 4.89% annualized, compared to December 31, 2024. The commercial loan portfolio increased $81.6 million with growth in commercial real estate of $74.2 million and commercial construction of $27.3 million partially offset by a decrease in commercial and industrial of $19.9 million compared to December 31, 2024. The consumer loan portfolio increased $11.8 million compared to December 31, 2024. Total deposits increased $109.8 million, or 5.72% annualized, compared to December 31, 2024. Customer deposit growth continues to be strong allowing for a reduction in higher-cost borrowings and brokered deposits. Customer deposit growth was $134.7 million, or 7.23% annualized, which was offset by lower brokered deposits of $24.9 million. Total borrowings decreased $55.0 million to $195.3 million compared to $250.3 million at December 31, 2024.
S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
- more -

S&T Earnings Release - 3

Conference Call
S&T will host its first quarter 2025 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, April 24, 2025. To access the webcast, go to S&T Bancorp Inc.’s Investor Relations webpage stbancorp.com. After the live presentation, the webcast will be archived at stbancorp.com for 12 months.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.7 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn.
Forward-Looking Statements
This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result,” “expect,” “anticipate,” “estimate,” “forecast,” “project,” “intend,” “believe,” “assume,” “strategy,” “trend,” “plan,” “outlook,” “outcome,” “continue,” “remain,” “potential,” “opportunity,” “comfortable,” “current,” “position,” “maintain,” “sustain,” “seek,” “achieve” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cybersecurity concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and other employees; general economic or
- more -

S&T Earnings Release - 4

business conditions, including the strength of regional economic conditions in our market area; ESG practices and disclosures, including climate change, hiring practices, the diversity of the work force and racial and social justice issues; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses and geopolitical tensions and conflicts between nations.
Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2024, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.
Non-GAAP Financial Measures
In addition to traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholder's equity, PPNR to average assets, efficiency ratio, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business 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. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures.
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 5
202520242024
FirstFourthFirst
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$114,340 $117,334 $118,577 
Investment Securities:
Taxable10,073 10,167 8,595 
Tax-exempt157 164 193 
Dividends278 214 389 
Total Interest and Dividend Income124,848 127,879 127,754 
INTEREST EXPENSE
Deposits38,354 40,627 36,662 
Borrowings, junior subordinated debt securities and other3,171 3,994 7,615 
Total Interest Expense41,525 44,621 44,277 
NET INTEREST INCOME83,323 83,258 83,477 
Provision for credit losses(3,040)(2,462)2,627 
Net Interest Income After Provision for Credit Losses86,363 85,720 80,850 
NONINTEREST INCOME
(Loss) gain on sale of securities(2,295)(2,592)3 
Debit and credit card4,188 4,627 4,235 
Service charges on deposit accounts3,962 4,175 3,828 
Wealth management3,084 3,151 3,042 
Other1,490 1,710 1,722 
Total Noninterest Income10,429 11,071 12,830 
NONINTEREST EXPENSE
Salaries and employee benefits29,853 30,816 29,512 
Data processing and information technology4,930 5,338 4,954 
Occupancy4,302 3,755 3,870 
Furniture, equipment and software3,483 3,295 3,472 
Marketing1,615 1,622 1,943 
Other taxes1,494 2,274 1,871 
Professional services and legal1,286 1,116 1,720 
FDIC insurance1,040 1,045 1,049 
Other noninterest expense7,088 6,184 6,129 
Total Noninterest Expense55,091 55,445 54,520 
Income Before Taxes41,701 41,346 39,160 
Income tax expense8,300 8,281 7,921 
Net Income$33,401 $33,065 $31,239 
Per Share Data
Shares outstanding at end of period38,261,299 38,259,449 38,233,280 
Average shares outstanding - diluted38,599,656 38,570,784 38,418,085 
Diluted earnings per share$0.87 $0.86 $0.81 
Dividends declared per share$0.34 $0.34 $0.33 
Dividend yield (annualized)3.67 %3.56 %4.11 %
Dividends paid to net income38.97 %39.36 %40.39 %
Book value$37.06 $36.08 $33.87 
Tangible book value (1)
$27.24 $26.25 $24.03 
Market value$37.05 $38.22 $32.08 
Profitability Ratios (Annualized)
Return on average assets1.41 %1.37 %1.32 %
Return on average shareholders' equity9.67 %9.57 %9.74 %
Return on average tangible shareholders' equity(2)
13.29 %13.25 %13.85 %
Pre-provision net revenue / average assets(3)
1.73 %1.72 %1.76 %
Efficiency ratio (FTE)(4)
56.99 %56.93 %56.21 %
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 6
202520242024
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks$211,836 $244,820 $207,462 
Securities available for sale, at fair value1,011,111 987,591 970,728 
Commercial loans:
Commercial real estate3,462,246 3,388,017 3,367,722 
Commercial and industrial1,520,475 1,540,397 1,597,119 
Commercial construction380,129 352,886 360,086 
Total Commercial Loans5,362,850 5,281,300 5,324,927 
Consumer loans:
Residential mortgage1,670,750 1,649,639 1,500,499 
Home equity660,594 653,756 645,780 
Installment and other consumer98,165 104,757 108,232 
Consumer construction43,990 53,506 76,596 
Total Consumer Loans2,473,499 2,461,658 2,331,107 
Total Portfolio Loans7,836,349 7,742,958 7,656,034 
Allowance for credit losses(99,010)(101,494)(104,802)
Total Portfolio Loans, Net7,737,339 7,641,464 7,551,232 
Federal Home Loan Bank and other restricted stock, at cost13,445 15,231 13,703 
Goodwill373,424 373,424 373,424 
Other Intangible assets, net2,813 3,055 3,762 
Other assets368,308 392,387 418,792 
Total Assets$9,718,276 $9,657,972 $9,539,103 
LIABILITIES
Deposits:
Noninterest-bearing demand$2,164,491 $2,185,242 $2,188,927 
Interest-bearing demand809,722 812,768 848,729 
Money market2,210,081 2,040,285 1,882,157 
Savings886,007 877,859 936,056 
Certificates of deposit1,822,632 1,866,963 1,744,478 
Total Deposits7,892,933 7,783,117 7,600,347 
Borrowings:
Short-term borrowings95,000 150,000 285,000 
Long-term borrowings50,876 50,896 39,156 
Junior subordinated debt securities49,433 49,418 49,373 
Total Borrowings195,309 250,314 373,529 
Other liabilities212,000 244,247 270,153 
Total Liabilities8,300,242 8,277,678 8,244,029 
SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity1,418,034 1,380,294 1,295,074 
Total Liabilities and Shareholders’ Equity$9,718,276 $9,657,972 $9,539,103 
Capitalization Ratios
Shareholders' equity / assets14.59 %14.29 %13.58 %
Tangible common equity / tangible assets(5)
11.16 %10.82 %10.03 %
Tier 1 leverage ratio12.09 %11.98 %11.30 %
Common equity tier 1 capital14.67 %14.58 %13.59 %
Risk-based capital - tier 114.99 %14.90 %13.91 %
Risk-based capital - total16.57 %16.49 %15.49 %
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 7

202520242024
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$128,7394.46%$172,1794.85%$144,6375.75%
Securities, at fair value990,4143.59%992,6533.34%966,7032.81%
Loans held for sale— 0.00%1176.61%1767.12%
Commercial real estate3,395,5995.82%3,328,0525.83%3,365,1425.92%
Commercial and industrial1,535,2356.69%1,538,9836.92%1,626,6337.36%
Commercial construction374,8816.95%368,5667.99%365,0887.70%
Total Commercial Loans5,305,7156.15%5,235,6016.30%5,356,8636.48%
Residential mortgage1,660,1775.21%1,635,3135.14%1,478,6094.93%
Home equity653,1136.30%649,1526.66%648,2656.99%
Installment and other consumer99,4027.97%105,4788.18%110,8998.64%
Consumer construction45,1576.86%56,1656.70%69,6765.60%
Total Consumer Loans2,457,8495.64%2,446,1085.71%2,307,4495.71%
Total Portfolio Loans7,763,5645.99%7,681,7096.11%7,664,3126.25%
Total Loans7,763,5645.99%7,681,8266.11%7,664,4886.25%
Total other earning assets16,7686.74%13,6806.59%25,3357.12%
Total Interest-earning Assets8,899,4855.70%8,860,3385.78%8,801,1635.86%
Noninterest-earning assets727,176711,374737,742
Total Assets$9,626,661$9,571,712$9,538,905
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$779,3091.00%$780,3961.03%$829,0951.12%
Money market2,088,3462.97%2,060,1033.17%1,920,0093.15%
Savings884,6360.66%874,6990.70%939,4670.63%
Certificates of deposit1,860,8404.29%1,818,7554.52%1,639,0594.37%
Total Interest-bearing Deposits5,613,1312.77%5,533,9532.92%5,327,6302.77%
Short-term borrowings117,7224.63%159,0114.84%408,3515.37%
Long-term borrowings50,8863.80%66,3643.76%39,2214.53%
Junior subordinated debt securities49,4237.17%49,4087.69%49,3648.23%
Total Borrowings218,0315.01%274,7835.09%496,9365.59%
Total Other Interest-bearing Liabilities43,926 4.40%40,0554.71%52,239 5.42%
Total Interest-bearing Liabilities5,875,0882.87%5,848,7913.03%5,876,8053.03%
Noninterest-bearing liabilities2,350,5742,348,0142,371,586
Shareholders' equity1,400,9991,374,9071,290,514
Total Liabilities and Shareholders' Equity$9,626,661$9,571,712$9,538,905
Net Interest Margin(6)
3.81%3.77%3.84%
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 8
202520242024
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Nonaccrual Loans
Commercial loans:% Loans% Loans% Loans
Commercial real estate$3,441 0.10%$4,173 0.12%$18,082 0.54%
Commercial and industrial6,749 0.44%12,570 0.82%3,092 0.19%
Commercial construction1,006 0.26%— —%4,960 1.38%
Total Nonaccrual Commercial Loans11,196 0.21%16,743 0.32%26,134 0.49%
Consumer loans:
Residential mortgage6,957 0.42%7,628 0.46%4,160 0.28%
Home equity3,968 0.60%3,336 0.51%2,709 0.42%
Installment and other consumer218 0.22%230 0.22%206 0.19%
Total Nonaccrual Consumer Loans11,143 0.45%11,194 0.45%7,075 0.30%
Total Nonaccrual Loans$22,339 0.29%$27,937 0.36%$33,209 0.43%
202520242024
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Loan (Recoveries) Charge-offs
Charge-offs$884 $1,964 $6,939 
Recoveries(911)(2,022)(350)
Net Loan (Recoveries) Charge-offs
($27)($58)$6,589 
Net Loan (Recoveries) Charge-offs
Commercial loans:
Commercial real estate($146)($1,359)$5,238 
Commercial and industrial154 1,139 950 
Commercial construction30 — — 
Total Commercial Loan Charge-offs (Recoveries)38 (220)6,188 
Consumer loans:
Residential mortgage13 10 7 
Home equity19 114 105 
Installment and other consumer(97)38 289 
Total Consumer Loan (Recoveries) Charge-offs(65)162 401 
Total Net Loan (Recoveries) Charge-offs
($27)($58)$6,589 
202520242024
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonaccrual loans$22,339 $27,937 $33,209 
OREO29 8 140 
Total nonperforming assets22,368 27,945 33,349 
Nonaccrual loans / total loans0.29 %0.36 %0.43 %
Nonperforming assets / total loans plus OREO0.29 %0.36 %0.44 %
Allowance for credit losses / total portfolio loans1.26 %1.31 %1.37 %
Allowance for credit losses / nonaccrual loans443 %363 %316 %
Net loan (recoveries) charge-offs
($27)($58)$6,589 
Net loan (recoveries) charge-offs (annualized) / average loans(0.00 %)(0.00 %)0.35 %
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 9
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202520242024
FirstFourthFirst
(dollars in thousands, except per share data)QuarterQuarterQuarter
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity$1,418,034 $1,380,294 $1,295,074 
Less: goodwill and other intangible assets, net of deferred tax liability(375,646)(375,837)(376,396)
Tangible common equity (non-GAAP)$1,042,388 $1,004,457 $918,678 
Common shares outstanding38,261,299 38,259,449 38,233,280 
Tangible book value (non-GAAP)$27.24 $26.25 $24.03 
Tangible book value is a preferred industry metric used to measure our company's value and commonly used by investors and analysts.
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized)$135,460 $131,541 $125,643 
Plus: amortization of intangibles (annualized), net of tax772 858 944 
Net income before amortization of intangibles (annualized)$136,232 $132,399 $126,587 
Average total shareholders' equity$1,400,999 $1,374,907 $1,290,514 
Less: average goodwill and other intangible assets, net of deferred tax liability(375,741)(375,879)(376,518)
Average tangible equity (non-GAAP)$1,025,258 $999,028 $913,996 
Return on average tangible shareholders' equity (non-GAAP)13.29 %13.25 %13.85 %
Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.
(3) Pre-provision Net Revenue / Average Assets (non-GAAP)
Income before taxes$41,701 $41,346 $39,160 
Plus: net loss (gain) on sale of securities2,295 2,592 (3)
Less: gain on Visa Class B-1 exchange
— (186)— 
Plus: Provision for credit losses(3,040)(2,462)2,627 
Total$40,956 $41,290 $41,784 
Total (annualized) (non-GAAP)$166,099 $164,262 $168,054 
Average assets$9,626,661 $9,571,712 $9,538,905 
Pre-provision Net Revenue / Average Assets (non-GAAP)1.73 %1.72 %1.76 %
Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses, losses (gains) on sale of securities and gain on Visa exchange. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.
(4) Efficiency Ratio (non-GAAP)
Noninterest expense$55,091 $55,445 $54,520 
Net interest income per consolidated statements of net income$83,323 $83,258 $83,477 
Plus: taxable equivalent adjustment617 660 692 
Net interest income (FTE) (non-GAAP)83,940 83,918 84,169 
Noninterest income10,429 11,071 12,830 
Plus: net loss (gain) on sale of securities2,295 2,592 (3)
Less: gain on Visa Class B-1 exchange
— (186)— 
Net interest income (FTE) (non-GAAP) plus noninterest income$96,664 $97,395 $96,996 
Efficiency ratio (non-GAAP)56.99 %56.93 %56.21 %
 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), adjusted to exclude losses (gains) on sale of securities and gain on Visa exchange. We believe the FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 10
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202520242024
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
(5) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity$1,418,034 $1,380,294 $1,295,074 
Less: goodwill and other intangible assets, net of deferred tax liability(375,646)(375,837)(376,396)
Tangible common equity (non-GAAP)$1,042,388 $1,004,457 $918,678 
Total assets$9,718,276 $9,657,972 $9,539,103 
Less: goodwill and other intangible assets, net of deferred tax liability(375,646)(375,837)(376,396)
Tangible assets (non-GAAP)$9,342,630 $9,282,135 $9,162,707 
Tangible common equity to tangible assets (non-GAAP)11.16 %10.82 %10.03 %
Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy.
(6) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income$124,848 $127,879 $127,754 
Less: interest expense(41,525)(44,621)(44,277)
Net interest income per consolidated statements of net income83,323 83,258 83,477 
Plus: taxable equivalent adjustment617 660 692 
Net interest income (FTE) (non-GAAP)$83,940 $83,918 $84,169 
Net interest income (FTE) (annualized)$340,423 $333,848 $338,526 
Average interest-earning assets$8,899,485 $8,860,338 $8,801,163 
Net interest margin (FTE) (non-GAAP)3.81 %3.77 %3.84 %
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.
###