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_image1a15a.jpg
FOR IMMEDIATE RELEASE
S&T Bancorp Inc. Announces First Quarter 2024 Results
INDIANA, Pa., - April 18, 2024 – S&T Bancorp Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $31.2 million, or $0.81 per diluted share, for the first quarter of 2024 compared to net income of $37.0 million, or $0.96 per diluted share, for the fourth quarter of 2023 and net income of $39.8 million, or $1.02 per diluted share, for the first quarter of 2023.
First Quarter of 2024 Highlights:
•Solid return metrics with return on average assets (ROA) of 1.32%, return on average equity (ROE) of 9.74% and return on average tangible equity (ROTE) (non-GAAP) of 13.85% compared to ROA of 1.55%, ROE of 11.79% and ROTE (non-GAAP) of 17.00% for the fourth quarter of 2023.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.76% compared to 1.97% for the fourth quarter of 2023.
•Net interest margin (NIM) (FTE) (non-GAAP) remains strong at 3.84% compared to 3.92% in the fourth quarter of 2023.
•Total deposits increased $78.6 million to $7.6 billion at March 31, 2024 compared to $7.5 billion at December 31, 2023, representing the third consecutive quarter of deposit growth.
•Nonperforming assets remain low at $33.3 million, or 0.44% of total loans plus other real estate owned, or OREO, compared to $23.0 million, or 0.30% of total loans plus OREO, at December 31, 2023.
“I am very pleased that we had a solid start to the year with excellent return metrics,” said Chief Executive Officer Chris McComish. “Our team continues to execute on strategies that have driven our strong results and deposit growth. The deep customer relationships built by our dedicated teams are at the core of our success. And for a second year in a row, we were named to the 2024 Forbes list of America’s Best Midsize Employers, based on survey feedback from our highly engaged employees. I am confident that our people-forward approach will continue to show positive results.”
Net Interest Income
Net interest income was $83.5 million for the first quarter of 2024 compared to $85.1 million for the fourth quarter of 2023. The decrease of $1.6 million in net interest income was driven by higher funding costs, partially offset by higher yields on interest-earning assets. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) remains strong at 3.84% compared to 3.92% in the prior quarter. The yield on total average loans increased 6 basis points to 6.25% compared to 6.19% in the fourth quarter of 2023. Average loan balances increased $103.4 million to $7.7 billion compared to $7.6 billion in the fourth quarter of 2023. Total interest-bearing deposit costs increased 24 basis points to 2.77% compared to 2.53% in the fourth quarter of 2023. Higher interest-bearing deposit costs primarily related to
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S&T Earnings Release - 2

growth in higher costing deposit products combined with a continued shift in the mix of deposits. Average money market balances increased $76.7 million and average CD balances increased $105.8 million compared to the fourth quarter of 2023. Average borrowings decreased $26.9 million to $496.9 million compared to $523.8 million in the fourth quarter of 2023 due to higher average deposit balances.
Asset Quality
The allowance for credit losses was $104.8 million, or 1.37% of total portfolio loans, as of March 31, 2024, compared to $108.0 million, or 1.41%, at December 31, 2023. The provision for credit losses was $2.6 million for the first quarter of 2024 compared to $0.9 million in the fourth quarter of 2023. The increase in the provision for credit losses primarily related to higher net charge-offs offset by a lower level of required reserve compared to the fourth quarter of 2023. Net loan charge-offs were $6.6 million for the first quarter of 2024 compared to net loan charge-offs of $3.6 million in the fourth quarter of 2023. Nonperforming assets to total loans plus OREO remained low at 0.44% as of March 31, 2024 compared to 0.30% at December 31, 2023.
Noninterest Income and Expense
Noninterest income decreased $5.3 million to $12.8 million in the first quarter of 2024 compared to $18.1 million in the fourth quarter of 2023. The decrease is primarily due to a return to more normal levels of noninterest income in the first quarter of 2024 after experiencing unusual items in the fourth quarter of 2023 including a gain on OREO of $3.3 million and valuation adjustments on our commercial loan swaps of $0.3 million and on a nonqualified benefit plan of $0.8 million. Customer activity was also seasonally slower in the first quarter of 2024 resulting in lower debit card fees and service charges. Noninterest expense decreased $1.7 million to $54.5 million compared to $56.2 million in the fourth quarter of 2023. The decrease was primarily due to lower salaries and employee benefits of $1.4 million mainly related to a decrease in medical expense compared to the fourth quarter of 2023.
Financial Condition
Total assets were $9.5 billion at March 31, 2024 compared to $9.6 billion at December 31, 2023. Total portfolio loans remained unchanged at $7.7 billion compared to December 31, 2023. The consumer loan portfolio increased $40.8 million with growth in residential mortgages of $39.4 million compared to December 31, 2023. The commercial loan portfolio decreased $38.1 million primarily due to a decline in commercial and industrial of $45.0 million compared to December 31, 2023. Total deposits increased $78.6 million , or 4.2% annualized, compared to December 31, 2023. CDs increased $162.8 million compared to December 31, 2023 due to the replacement of $101.0 million of brokered money market funds with a like amount of brokered CDs and customers shifting from other deposit types. Total borrowings decreased $130.1 million to $373.5 million compared to $503.6 million at December 31, 2023 primarily related to deposit growth.
S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
Conference Call
S&T will host its first quarter 2024 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, April 18, 2024. 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.
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About S&T Bancorp Inc. and S&T Bank
S&T Bancorp Inc. is a $9.5 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 2023 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; any remaining uncertainties with 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; 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 employees; general economic or 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
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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, 2023, 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.
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 5
202420232023
FirstFourthFirst
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$118,577 $117,443 $102,724 
Investment Securities:
Taxable8,595 8,491 7,457 
Tax-exempt193 210 214 
Dividends389 562 508 
Total Interest and Dividend Income127,754 126,706 110,903 
INTEREST EXPENSE
Deposits36,662 32,921 14,903 
Borrowings, junior subordinated debt securities and other7,615 8,676 7,209 
Total Interest Expense44,277 41,597 22,112 
NET INTEREST INCOME83,477 85,109 88,791 
Provision for credit losses2,627 943 922 
Net Interest Income After Provision for Credit Losses80,850 84,166 87,869 
NONINTEREST INCOME
Net gain on sale of securities3 — — 
Debit and credit card4,235 4,540 4,373 
Service charges on deposit accounts3,828 4,129 4,076 
Wealth management3,042 3,050 2,948 
Mortgage banking277 280 301 
Other1,445 6,062 1,492 
Total Noninterest Income12,830 18,061 13,190 
NONINTEREST EXPENSE
Salaries and employee benefits29,512 30,949 27,601 
Data processing and information technology4,954 4,523 4,258 
Occupancy3,870 3,598 3,835 
Furniture, equipment and software3,472 3,734 2,861 
Marketing1,943 1,435 1,853 
Other taxes1,871 1,870 1,790 
Professional services and legal1,720 1,968 1,821 
FDIC insurance1,049 1,049 1,012 
Other noninterest expense6,129 7,077 6,668 
Total Noninterest Expense54,520 56,203 51,699 
Income Before Taxes39,160 46,024 49,360 
Income tax expense7,921 8,977 9,561 
Net Income$31,239 $37,047 $39,799 
Per Share Data
Shares outstanding at end of period38,233,280 38,232,806 38,998,156 
Average shares outstanding - diluted38,418,085 38,379,493 39,032,062 
Diluted earnings per share$0.81 $0.96 $1.02 
Dividends declared per share$0.33 $0.33 $0.32 
Dividend yield (annualized)4.11 %3.95 %4.07 %
Dividends paid to net income40.39 %34.04 %31.10 %
Book value$33.87 $33.57 $31.48 
Tangible book value (1)
$24.03 $23.72 $21.81 
Market value$32.08 $33.42 $31.45 
Profitability Ratios (Annualized)
Return on average assets1.32 %1.55 %1.77 %
Return on average shareholders' equity9.74 %11.79 %13.38 %
Return on average tangible shareholders' equity(2)
13.85 %17.00 %19.61 %
Pre-provision net revenue / average assets(3)
1.76 %1.97 %2.23 %
Efficiency ratio (FTE)(4)
56.21 %54.12 %50.42 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 6
202420232023
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks$207,462 $233,612 $244,152 
Securities available for sale, at fair value970,728 970,391 998,708 
Loans held for sale— 153 81 
Commercial loans:
Commercial real estate3,367,722 3,357,603 3,145,079 
Commercial and industrial1,597,119 1,642,106 1,709,612 
Commercial construction360,086 363,284 393,658 
Total Commercial Loans5,324,927 5,362,993 5,248,349 
Consumer loans:
Residential mortgage1,500,499 1,461,097 1,189,220 
Home equity645,780 650,666 649,590 
Installment and other consumer108,232 114,897 119,843 
Consumer construction76,596 63,688 44,062 
Total Consumer Loans2,331,107 2,290,348 2,002,715 
Total Portfolio Loans7,656,034 7,653,341 7,251,064 
Allowance for credit losses(104,802)(107,966)(108,113)
Total Portfolio Loans, Net7,551,232 7,545,375 7,142,951 
Federal Home Loan Bank and other restricted stock, at cost13,703 25,082 30,262 
Goodwill373,424 373,424 373,424 
Other assets422,554 403,489 403,864 
Total Assets$9,539,103 $9,551,526 $9,193,442 
LIABILITIES
Deposits:
Noninterest-bearing demand$2,188,927 $2,221,942 $2,468,638 
Interest-bearing demand848,729 825,787 841,130 
Money market1,882,157 1,941,842 1,599,814 
Savings936,056 950,546 1,068,274 
Certificates of deposit1,744,478 1,581,652 1,175,238 
Total Deposits7,600,347 7,521,769 7,153,094 
Borrowings:
Short-term borrowings285,000 415,000 495,000 
Long-term borrowings39,156 39,277 14,628 
Junior subordinated debt securities49,373 49,358 54,468 
Total Borrowings373,529 503,635 564,096 
Other liabilities270,153 242,677 248,457 
Total Liabilities8,244,029 8,268,081 7,965,647 
SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity1,295,074 1,283,445 1,227,795 
Total Liabilities and Shareholders’ Equity$9,539,103 $9,551,526 $9,193,442 
Capitalization Ratios
Shareholders' equity / assets13.58 %13.44 %13.36 %
Tangible common equity / tangible assets(5)
10.03 %9.88 %9.65 %
Tier 1 leverage ratio11.30 %11.21 %11.15 %
Common equity tier 1 capital13.59 %13.37 %13.10 %
Risk-based capital - tier 113.91 %13.69 %13.50 %
Risk-based capital - total15.49 %15.27 %15.09 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 7

202420232023
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$144,6375.75%$149,9855.92%$140,4994.22%
Securities, at fair value966,7032.81%956,1072.75%1,000,6092.51%
Loans held for sale1767.12%577.25%1266.39%
Commercial real estate3,365,1425.92%3,312,5095.86%3,132,3825.45%
Commercial and industrial1,626,6337.36%1,621,0917.29%1,711,1136.76%
Commercial construction365,0887.70%381,2947.55%388,7957.23%
Total Commercial Loans5,356,8636.48%5,314,8946.42%5,232,2906.01%
Residential mortgage1,478,6094.93%1,417,8914.81%1,144,8214.43%
Home equity648,2656.99%650,7216.94%650,3856.28%
Installment and other consumer110,8998.64%114,7209.15%122,8737.80%
Consumer construction69,6765.60%62,8505.22%45,8704.67%
Total Consumer Loans2,307,4495.71%2,246,1825.66%1,963,9495.26%
Total Portfolio Loans7,664,3126.25%7,561,0766.19%7,196,2395.81%
Total Loans7,664,4886.25%7,561,1336.19%7,196,3655.81%
Total other earning assets25,3357.12%37,5027.23%34,7206.71%
Total Interest-earning Assets8,801,1635.86%8,704,7275.81%8,372,1935.39%
Noninterest-earning assets737,742768,942754,677
Total Assets$9,538,905$9,473,669$9,126,870
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$829,0951.12%$836,7711.03%$824,6230.33%
Money market1,920,0093.15%1,843,3382.98%1,670,9881.88%
Savings939,4670.63%957,9030.57%1,090,1370.30%
Certificates of deposit1,639,0594.37%1,533,2664.02%1,052,4602.19%
Total Interest-bearing Deposits5,327,6302.77%5,171,2782.53%4,638,2081.30%
Short-term borrowings408,3515.37%435,0605.75%451,6684.93%
Long-term borrowings39,2214.53%39,3414.53%14,6892.71%
Junior subordinated debt securities49,3648.23%49,3508.25%54,4587.50%
Total Borrowings496,9365.59%523,7515.90%520,8155.13%
Total Other Interest-bearing Liabilities52,239 5.42%65,5475.40%54,669 4.58%
Total Interest-bearing Liabilities5,876,8053.03%5,760,5762.86%5,213,6921.72%
Noninterest-bearing liabilities2,371,5862,466,0632,706,820
Shareholders' equity1,290,5141,247,0301,206,358
Total Liabilities and Shareholders' Equity$9,538,905$9,473,669$9,126,870
Net Interest Margin(6)
3.84%3.92%4.32%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 8
202420232023
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Nonaccrual Loans
Commercial loans:% Loans% Loans% Loans
Commercial real estate$18,082 0.54%$7,267 0.22%$7,931 0.25%
Commercial and industrial3,092 0.19%3,244 0.20%9,348 0.55%
Commercial construction4,960 1.38%4,960 1.37%384 0.10%
Total Nonaccrual Commercial Loans26,134 0.49%15,471 0.29%17,663 0.34%
Consumer loans:
Residential mortgage4,160 0.28%4,579 0.31%4,749 0.40%
Home equity2,709 0.42%2,567 0.39%1,915 0.29%
Installment and other consumer206 0.19%330 0.29%317 0.26%
Total Nonaccrual Consumer Loans7,075 0.30%7,476 0.33%6,981 0.35%
Total Nonaccrual Loans$33,209 0.43%$22,947 0.30%$24,644 0.34%
202420232023
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Loan Charge-offs (Recoveries)
Charge-offs$6,939 $3,880 $4,459 
Recoveries(350)(260)(9,574)
Net Loan Charge-offs (Recoveries)$6,589 $3,620 ($5,115)
Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud$— $— ($9,329)
Commercial real estate$5,238 $1,690 ($25)
Commercial and industrial950 949 3,948 
Commercial construction— 451 (2)
Total Commercial Loan Charge-offs (Recoveries)6,188 3,090 (5,408)
Consumer loans:
Residential mortgage7 (3)9 
Home equity105 148 31 
Installment and other consumer289 385 253 
Total Consumer Loan Charge-offs401 530 293 
Total Net Loan Charge-offs (Recoveries)$6,589 $3,620 ($5,115)
202420232023
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonaccrual loans$33,209 $22,947 $24,644 
OREO140 75 3,076 
Total nonperforming assets33,349 23,022 27,720 
Nonaccrual loans / total loans0.43 %0.30 %0.34 %
Nonperforming assets / total loans plus OREO0.44 %0.30 %0.38 %
Allowance for credit losses / total portfolio loans1.37 %1.41 %1.49 %
Allowance for credit losses / nonaccrual loans316 %471 %439 %
Net loan charge-offs (recoveries)$6,589 $3,620 ($5,115)
Net loan charge-offs (recoveries) (annualized) / average loans0.35 %0.19 %(0.29 %)
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 9
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202420232023
FirstFourthFirst
(dollars and shares in thousands)QuarterQuarterQuarter
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity$1,295,074 $1,283,445 $1,227,795 
Less: goodwill and other intangible assets, net of deferred tax liability(376,396)(376,631)(377,405)
Tangible common equity (non-GAAP)$918,678 $906,814 $850,390 
Common shares outstanding38,233 38,233 38,998 
Tangible book value (non-GAAP)$24.03 $23.72 $21.81 
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)$125,643 $146,980 $161,407 
Plus: amortization of intangibles (annualized), net of tax944 1,003 1,085 
Net income before amortization of intangibles (annualized)$126,587 $147,983 $162,492 
Average total shareholders' equity$1,290,514 $1,247,030 $1,206,358 
Less: average goodwill and other intangible assets, net of deferred tax liability(376,518)(376,761)(377,576)
Average tangible equity (non-GAAP)$913,996 $870,269 $828,782 
Return on average tangible shareholders' equity (non-GAAP)13.85 %17.00 %19.61 %
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$39,160 $46,024 $49,360 
Plus: Provision for credit losses2,627 943 922 
Total$41,787 $46,967 $50,282 
Total (annualized) (non-GAAP)$168,066 $186,336 $203,921 
Average assets$9,538,905 $9,473,669 $9,126,870 
Pre-provision Net Revenue / Average Assets (non-GAAP)1.76 %1.97 %2.23 %
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$54,520 $56,203 $51,699 
Net interest income per consolidated statements of net income$83,477 $85,109 $88,791 
Plus: taxable equivalent adjustment692 683 555 
Net interest income (FTE) (non-GAAP)84,169 85,792 89,346 
Noninterest income12,830 18,061 13,190 
Less: net gains on sale of securities(3)— — 
Net interest income (FTE) (non-GAAP) plus noninterest income$96,996 $103,853 $102,536 
Efficiency ratio (non-GAAP)56.21 %54.12 %50.42 %
 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:
202420232023
FirstFourthFirst
(dollars in thousands)QuarterQuarterQuarter
(5) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity$1,295,074 $1,283,445 $1,227,795 
Less: goodwill and other intangible assets, net of deferred tax liability(376,396)(376,631)(377,405)
Tangible common equity (non-GAAP)$918,678 $906,814 $850,390 
Total assets$9,539,103 $9,551,526 $9,193,442 
Less: goodwill and other intangible assets, net of deferred tax liability(376,396)(376,631)(377,405)
Tangible assets (non-GAAP)$9,162,707 $9,174,895 $8,816,037 
Tangible common equity to tangible assets (non-GAAP)10.03 %9.88 %9.65 %
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$127,754 $126,706 $110,903 
Less: interest expense(44,277)(41,597)(22,112)
Net interest income per consolidated statements of net income83,477 85,109 88,791 
Plus: taxable equivalent adjustment692 683 555 
Net interest income (FTE) (non-GAAP)$84,169 $85,792 $89,346 
Net interest income (FTE) (annualized)$338,526 $340,370 $362,348 
Average interest-earning assets$8,801,163 $8,704,727 $8,372,193 
Net interest margin (FTE) (non-GAAP)3.84 %3.92 %4.32 %
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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