EX-99.1 2 stba-2023033xex991er.htm EX-99.1 Document

INVESTOR CONTACT:
Mark Kochvar
S&T Bancorp, Inc.
Chief Financial Officer
724.465.4826
mark.kochvar@stbank.com
earn_image1a15a.jpg
FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces First Quarter 2023 Net Income
INDIANA, Pa. - April 20, 2023 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $39.8 million, or $1.02 per diluted share, for the first quarter of 2023 compared to net income of $40.3 million, or $1.03 per diluted share, for the fourth quarter of 2022 and net income of $29.1 million, or $0.74 per diluted share, for the first quarter of 2022.
First Quarter of 2023 Highlights:
•Solid return metrics with return on average assets (ROA) of 1.77%, return on average equity (ROE) of 13.38% and return on average tangible equity (ROTE) (non-GAAP) of 19.61% compared to ROA of 1.78%, ROE of 13.68% and ROTE (non-GAAP) of 20.36% for the fourth quarter of 2022.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) of 2.23% compared to 2.36% for the fourth quarter of 2022.
•Net interest margin (NIM) (FTE) (non-GAAP) was relatively unchanged at 4.32% compared to 4.33% in the fourth quarter of 2022.             
•Total portfolio loans increased $67.1 million, or 3.8% annualized, compared to December 31, 2022.
•Deposits decreased $66.9 million, or 3.8% annualized, compared to December 31, 2022 with a decline in January, stability in February and growth in March.
•Net recovery of $5.1 million, or 0.29% of average loans (annualized), primarily related to a $9.3 million recovery from a customer fraud in 2020.
"We delivered solid net interest margin and return metrics for the first quarter. Our balance sheet is a source of strength with a stable, well-diversified deposit base and a strong capital position," said Chris McComish, chief executive officer. "As the economic landscape continues to evolve, we remain committed to our purpose of People-Forward Banking. I am proud of the results from our team's proactive customer outreach and engagement during the quarter."
Net Interest Income
Net interest income was $88.8 million for the first quarter of 2023 compared to $89.1 million for the fourth quarter of 2022. The decrease of $0.3 million in net interest income was driven by higher funding costs and two fewer days in the first quarter, partially offset by higher yields on interest-earning assets. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) decreased 1 basis point to 4.32% compared to 4.33% in the prior quarter. The yield on total average loans increased 43 basis points to 5.81% compared to 5.38% in the fourth quarter of 2022 due to higher interest rates. Total interest-bearing deposit costs increased 37 basis points to
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1.30% compared to 0.93% in the fourth quarter of 2022. Higher interest-bearing deposit costs primarily related to a change in the mix of deposits with higher balances in certificates of deposit. Average certificate of deposit balances increased $110.7 million compared to the fourth quarter of 2022. Total borrowing costs increased 53 basis points to 5.13% compared to 4.60% in the fourth quarter of 2022. Average borrowings increased $303.2 million to $520.8 million compared to $217.6 million in the fourth quarter of 2022 due to loan growth and deposit balance declines.
Asset Quality
Net loan recoveries were $5.1 million for the first quarter of 2023 compared to net loan charge-offs of $0.9 million in the fourth quarter of 2022. The net recovery primarily related to a $9.3 million recovery from a customer fraud in 2020. Total charge-offs of $4.5 million primarily related to a $3.4 million charge from a strategic exit of a C&I credit through a note sale . Total nonperforming assets increased $5.6 million to $27.7 million at March 31, 2023 compared to $22.1 million at December 31, 2022. Nonperforming assets to total loans plus OREO increased 7 basis points to 0.38% at March 31, 2023 compared to 0.31% at December 31, 2022. The provision for credit losses was $0.9 million for the first quarter of 2023 compared to $3.2 million in the fourth quarter of 2022. The allowance for credit losses was 1.49% of total portfolio loans as of March 31, 2023 compared to 1.41% at December 31, 2022. The increase in the allowance for credit losses related to a $4.2 million specific reserve and additional qualitative reserve due to the uncertainty in the macroeconomic environment.
Noninterest Income and Expense
Noninterest income decreased $2.4 million to $13.2 million in the first quarter of 2023 compared to $15.6 million in the fourth quarter of 2022. The decrease mainly related to a decline in other income of $2.1 million primarily related to a net gain on the sale of OREO of $2.0 million in the fourth quarter of 2022. Noninterest expense was $51.7 million compared to $51.3 million in the fourth quarter of 2022. FDIC insurance increased $0.6 million primarily related to an increase in the assessment rate schedule effective January 1, 2023. Marketing increased $0.5 million due to the timing of various marketing promotions. Salaries and employee benefits decreased $0.4 million due to lower incentives and pension costs.
Financial Condition
Total assets were $9.2 billion at March 31, 2023 compared to $9.1 billion at December 31, 2022. Total portfolio loans increased by $67.1 million, or 3.8% annualized, compared to December 31, 2022. The consumer loan portfolio increased $65.3 million with growth in residential mortgages of $72.7 million compared to December 31, 2022.
Total deposits decreased $66.9 million, or 3.8% annualized, compared to December 31, 2022. Deposit balances declined early in the quarter for the month of January followed by stability in February and growth in March. Certificates of deposit increased $240.6 million compared to December 31, 2022 mainly due to migration from other deposit categories. Our deposit base is stable and well-diversified with 59% personal deposits and 41% business deposits. Total borrowings increased $124.9 million to $564.1 million compared to December 31, 2022 related to loan growth and deposit declines.
S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
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Conference Call
S&T will host its first quarter 2023 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, April 20, 2023. To access the webcast, go to S&T Bancorp, Inc.’s Investor Relations webpage www.stbancorp.com. After the live presentation, the webcast will be archived at www.stbancorp.com for 12 months.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.2 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. S&T Bank was named by Forbes as a 2022 Best-in-State Bank. 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; cyber-security 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; the transition from LIBOR as a reference rate; 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 may adversely affect our business, results of operations, liquidity and stock price; 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
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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 employees; general economic or business conditions, including the strength of regional economic conditions in our market area; environmental, social and governance 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.
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, 2022, 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 of 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.

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S&T Bancorp, Inc.
Consolidated Selected Financial Data
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202320222022
FirstFourthFirst
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$102,724 $96,220 $64,593 
Investment Securities:
Taxable7,457 6,507 4,936 
Tax-exempt214 233 482 
Dividends508 248 98 
Total Interest and Dividend Income110,903 103,208 70,109 
INTEREST EXPENSE
Deposits14,903 11,067 1,853 
Borrowings, junior subordinated debt securities and other7,209 3,083 523 
Total Interest Expense22,112 14,150 2,376 
NET INTEREST INCOME88,791 89,058 67,733 
Provision for credit losses922 3,176 (512)
Net Interest Income After Provision for Credit Losses87,869 85,882 68,245 
NONINTEREST INCOME
Net gain on sale of securities— — — 
Debit and credit card4,373 4,421 5,063 
Service charges on deposit accounts4,076 4,341 3,974 
Wealth management2,948 3,016 3,242 
Mortgage banking301 309 1,015 
Other1,492 3,556 1,932 
Total Noninterest Income13,190 15,643 15,226 
NONINTEREST EXPENSE
Salaries and employee benefits27,601 27,998 23,712 
Data processing and information technology4,258 4,159 4,435 
Occupancy3,835 3,806 3,882 
Furniture, equipment and software2,861 2,975 2,777 
Marketing1,853 1,348 1,361 
Professional services and legal1,821 2,138 1,949 
Other taxes1,790 1,842 1,537 
FDIC insurance1,012 437 937 
Other 6,668 6,572 6,824 
Total Noninterest Expense51,699 51,275 47,414 
Income Before Taxes49,360 50,250 36,057 
Income tax expense9,561 9,980 6,914 
Net Income$39,799 $40,270 $29,143 
Per Share Data
Shares outstanding at end of period38,998,156 38,999,733 39,351,688 
Average shares outstanding - diluted39,032,062 38,944,575 39,089,933 
Diluted earnings per share$1.02 $1.03 $0.74 
Dividends declared per share$0.32 $0.31 $0.29 
Dividend yield (annualized)4.07 %3.63 %3.92 %
Dividends paid to net income31.10 %29.85 %39.06 %
Book value$31.48 $30.38 $30.11 
Tangible book value (1)
$21.81 $20.69 $20.49 
Market value$31.45 $34.18 $29.58 
Profitability Ratios (Annualized)
Return on average assets1.77 %1.78 %1.25 %
Return on average shareholders' equity13.38 %13.68 %9.88 %
Return on average tangible shareholders' equity(2)
19.61 %20.36 %14.61 %
Pre-provision net revenue / average assets(3)
2.23 %2.36 %1.52 %
Efficiency ratio (FTE)(4)
50.42 %48.73 %56.82 %
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Consolidated Selected Financial Data
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202320222022
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks, including interest-bearing deposits$244,152 $210,009 $823,757 
Securities, at fair value998,708 1,002,778 1,028,218 
Loans held for sale81 16 1,346 
Commercial loans:
Commercial real estate3,145,079 3,128,187 3,257,955 
Commercial and industrial1,709,612 1,718,976 1,675,316 
Commercial construction393,658 399,371 398,592 
Total Commercial Loans5,248,349 5,246,534 5,331,863 
Consumer loans:
Residential mortgage1,189,220 1,116,528 912,531 
Home equity649,590 652,066 581,821 
Installment and other consumer119,843 124,896 112,297 
Consumer construction44,062 43,945 25,399 
Total Consumer Loans2,002,715 1,937,435 1,632,048 
Total Portfolio Loans7,251,064 7,183,969 6,963,911 
Allowance for credit losses(108,113)(101,340)(99,915)
Total Portfolio Loans, Net7,142,951 7,082,629 6,863,996 
Federal Home Loan Bank and other restricted stock, at cost30,262 23,035 9,349 
Goodwill373,424 373,424 373,424 
Other assets403,864 418,676 332,191 
Total Assets$9,193,442 $9,110,567 $9,432,281 
LIABILITIES
Deposits:
Noninterest-bearing demand$2,468,638 $2,588,692 $2,740,315 
Interest-bearing demand841,130 846,653 1,070,656 
Money market1,599,814 1,731,521 1,992,916 
Savings1,068,274 1,118,511 1,117,985 
Certificates of deposit1,175,238 934,593 1,038,586 
Total Deposits7,153,094 7,219,970 7,960,458 
Borrowings:
Short-term borrowings495,000 370,000 70,112 
Long-term borrowings14,628 14,741 22,171 
Junior subordinated debt securities54,468 54,453 54,408 
Total Borrowings564,096 439,194 146,691 
Other liabilities248,457 266,744 140,182 
Total Liabilities7,965,647 7,925,908 8,247,331 
SHAREHOLDERS' EQUITY
Total Shareholders' Equity1,227,795 1,184,659 1,184,950 
Total Liabilities and Shareholders' Equity$9,193,442 $9,110,567 $9,432,281 
Capitalization Ratios
Shareholders' equity / assets13.36 %13.00 %12.56 %
Tangible common equity / tangible assets(5)
9.65 %9.24 %8.91 %
Tier 1 leverage ratio11.15 %11.06 %9.85 %
Common equity tier 1 capital13.10 %12.81 %12.26 %
Risk-based capital - tier 113.50 %13.21 %12.67 %
Risk-based capital - total15.09 %14.73 %14.18 %
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Consolidated Selected Financial Data
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202320222022
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$140,4994.22%$79,8814.04%$756,1410.16%
Securities, at fair value1,000,6092.51%991,7742.43%1,002,2122.10%
Loans held for sale1266.39%4916.19%1,5453.51%
Commercial real estate3,132,3825.45%3,118,8745.14%3,257,2383.65%
Commercial and industrial1,711,1136.76%1,724,4806.15%1,712,8653.98%
Commercial construction388,7957.23%387,7376.64%409,2643.30%
Total Commercial Loans5,232,2906.01%5,231,0915.58%5,379,3673.73%
Residential mortgage1,144,8214.43%1,077,1144.25%896,2684.02%
Home equity650,3856.28%648,3405.44%570,7813.43%
Installment and other consumer122,8737.80%126,5706.97%109,9725.44%
Consumer construction45,8704.67%41,3853.81%21,8333.37%
Total Consumer Loans1,963,9495.26%1,893,4094.83%1,598,8543.90%
Total Portfolio Loans7,196,2395.81%7,124,5005.38%6,978,2213.77%
Total Loans7,196,3655.81%7,124,9915.38%6,979,7653.77%
Federal Home Loan Bank and other restricted stock34,7206.71%24,0435.32%9,2803.40%
Total Interest-earning Assets8,372,1935.39%8,220,6895.01%8,747,3983.27%
Noninterest-earning assets754,677763,927709,246
Total Assets$9,126,870$8,984,616$9,456,644
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$824,6230.33%$836,5850.24%$986,6390.08%
Money market1,670,9881.88%1,792,1621.60%2,055,8570.15%
Savings1,090,1370.30%1,127,9870.22%1,109,0480.03%
Certificates of deposit1,052,4602.19%941,7741.14%1,070,1890.32%
Total Interest-bearing Deposits4,638,2081.30%4,698,5080.93%5,221,7330.14%
Securities sold under repurchase agreements——%——%81,7900.10%
Short-term borrowings451,6684.93%148,3704.22%——%
Long-term borrowings14,6892.71%14,8012.55%22,3101.95%
Junior subordinated debt securities54,4587.50%54,4436.21%54,3982.95%
Total Borrowings520,8155.13%217,6144.60%158,4981.34%
Total Other Costing Liabilities54,669 4.58%60,1563.72%— —%
Total Interest-bearing Liabilities5,213,6921.72%4,976,2781.13%5,380,2310.18%
Noninterest-bearing liabilities2,706,8202,840,3152,879,718
Shareholders' equity1,206,3581,168,0231,196,694
Total Liabilities and Shareholders' Equity$9,126,870$8,984,616$9,456,644
Net Interest Margin(6)
4.32%4.33%3.16%
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Consolidated Selected Financial Data
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202320222022
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Nonaccrual Loans
Commercial loans:% Loans% Loans% Loans
Commercial real estate$7,932 0.25%$7,323 0.23%$26,699 0.82%
Commercial and industrial9,348 0.55%2,974 0.17%14,673 0.90%
Commercial construction384 0.10%384 0.10%864 0.22%
Total Nonaccrual Commercial Loans17,664 0.34%10,681 0.20%42,236 0.79%
Consumer loans:
Residential mortgage4,749 0.40%6,063 0.54%7,450 0.82%
Home equity1,915 0.29%2,031 0.31%2,713 0.47%
Installment and other consumer316 0.26%277 0.22%125 0.11%
Total Nonaccrual Consumer Loans6,980 0.35%8,371 0.43%10,287 0.63%
Total Nonaccrual Loans$24,644 0.34%$19,052 0.27%$52,524 0.75%
202320222022
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Loan (Recoveries) Charge-offs
Charge-offs$4,459 $1,718 $982 
Recoveries(9,574)(808)(3,019)
Net Loan (Recoveries) Charge-offs($5,115)$910 ($2,037)
Net Loan (Recoveries) Charge-offs
Commercial loans:
Customer fraud($9,329)$— $— 
Commercial real estate(25)$412 $178 
Commercial and industrial3,948 150 (2,507)
Commercial construction(2)— (1)
Total Commercial Loan (Recoveries) Charge-offs(5,408)562 (2,330)
Consumer loans:
Residential mortgage9 51 81 
Home equity31 136 (20)
Installment and other consumer253 161 232 
Total Consumer Loan Charge-offs (Recoveries) 293 348 293 
Total Net Loan (Recoveries) Charge-offs($5,115)$910 ($2,037)
202320222022
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonaccrual loans$24,644 $19,052 $52,524 
OREO3,076 3,065 7,028 
Total nonperforming assets27,720 22,117 59,552 
Troubled debt restructurings (nonaccruing)*— 2,894 15,389 
Troubled debt restructurings (accruing)*— 8,891 10,739 
Total troubled debt restructurings*— 11,785 26,128 
Nonaccrual loans / total loans0.34 %0.27 %0.75 %
Nonperforming assets / total loans plus OREO0.38 %0.31 %0.85 %
Allowance for credit losses / total portfolio loans1.49 %1.41 %1.43 %
Allowance for credit losses / nonaccrual loans439 %532 %190 %
Net loan (recoveries) charge-offs($5,115)$910 ($2,037)
Net loan (recoveries) charge-offs (annualized) / average loans(0.29 %)0.05 %(0.12 %)
*TDR's were eliminated as of January 1, 2023 as part of implementing ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.
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Consolidated Selected Financial Data
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Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202320222022
FirstFourthFirst
(dollars and shares in thousands)QuarterQuarterQuarter
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity$1,227,795 $1,184,659 $1,184,950 
Less: goodwill and other intangible assets, net of deferred tax liability(377,405)(377,673)(378,557)
Tangible common equity (non-GAAP)$850,390 $806,986 $806,393 
Common shares outstanding38,998 39,000 39,352 
Tangible book value (non-GAAP)$21.81 $20.69 $20.49 
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)$161,407 $159,765 $118,192 
Plus: amortization of intangibles (annualized), net of tax1,085 1,144 1,276 
Net income before amortization of intangibles (annualized)$162,492 $160,909 $119,468 
Average total shareholders' equity$1,206,358 $1,168,023 $1,196,694 
Less: average goodwill and other intangible assets, net of deferred tax liability(377,576)(377,857)(378,761)
Average tangible equity (non-GAAP)$828,782 $790,166 $817,933 
Return on average tangible shareholders' equity (non-GAAP)19.61 %20.36 %14.61 %
Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.
(3) PPNR / Average Assets (non-GAAP)
Income before taxes$49,360 $50,250 $36,057 
Plus: Provision for credit losses922 3,176 (512)
Total$50,282 $53,426 $35,545 
Total (annualized) (non-GAAP)$203,921 $211,961 $144,155 
Average assets$9,126,981 $8,984,616 $9,456,644 
PPNR / Average Assets (non-GAAP)2.23 %2.36 %1.52 %
Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. 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$51,699 $51,275 $47,414 
Net interest income per consolidated statements of net income88,791 89,058 67,733 
Plus: taxable equivalent adjustment555 532 493 
Net interest income (FTE) (non-GAAP)$89,346 $89,590 $68,226 
Noninterest income13,190 15,643 15,226 
Net interest income (FTE) (non-GAAP) plus noninterest income$102,536 $105,233 $83,452 
Efficiency ratio (non-GAAP)50.42 %48.73 %56.82 %
 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
10
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202320222022
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
(5) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity$1,227,795 $1,184,659 $1,184,950 
Less: goodwill and other intangible assets, net of deferred tax liability(377,405)(377,673)(378,557)
Tangible common equity (non-GAAP)$850,390 $806,986 $806,393 
Total assets$9,194,034 $9,110,567 $9,432,281 
Less: goodwill and other intangible assets, net of deferred tax liability(377,405)(377,673)(378,557)
Tangible assets (non-GAAP)$8,816,629 $8,732,894 $9,053,724 
Tangible common equity to tangible assets (non-GAAP)9.65 %9.24 %8.91 %
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$110,903 $103,208 $70,109 
Less: interest expense(22,112)(14,150)(2,376)
Net interest income per consolidated statements of net income$88,791 $89,058 $67,733 
Plus: taxable equivalent adjustment555 532 493 
Net interest income (FTE) (non-GAAP)$89,346 $89,590 $68,226 
Net interest income (FTE) (annualized)$362,348 $355,438 $276,694 
Average interest-earning assets$8,372,193 $8,220,689 $8,747,398 
Net interest margin (FTE) (non-GAAP)4.32 %4.33 %3.16 %
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.
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