S&T Bancorp, Inc. Announces Improved Third Quarter Earnings

Oct 25, 2010, 09:00 ET from S&T Bancorp, Inc.

INDIANA, Pa., Oct. 25 /PRNewswire-FirstCall/ -- S&T Bancorp, Inc. (Nasdaq: STBA), a full-service financial institution with office locations in 10 Pennsylvania counties, has announced its third quarter earnings.  

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Todd D. Brice, president and chief executive officer of S&T Bancorp, Inc., offered the following highlights:

  • Third quarter earnings were $10.9 million, an increase of 39% from the prior quarter, with diluted earnings per common share of $0.39 compared to $0.28 in the second quarter of 2010 and $0.28 in the third quarter of 2009.
  • Mortgage banking activities resulted in net revenue of $1.6 million in the third quarter of 2010 compared to $0.2 million in the second quarter of 2010.
  • Nonperforming assets remain stable at 2.45% of total loans plus OREO compared to 2.41% in the second quarter of 2010 and down from 2.64% in the third quarter of 2009.
  • Net interest margin increased to 4.09%, an improvement of four basis points from the prior quarter and 15 basis points from the third quarter of 2009.

"We are extremely pleased to deliver a positive quarter with improved results to our shareholders," said Brice.  "Overall, the business performed very well for the quarter, including a strong performance from our mortgage banking business.  We continue to see signs of stabilization in our loan portfolio as evidenced by improving asset quality metrics.  At the same time, we remain focused on the challenges that lie ahead as we move forward in these unprecedented times."  

Net Interest Income

Net interest income on a fully taxable equivalent basis for the third quarter of 2010 was $38.1 million compared to $37.8 million in the second quarter of 2010 and $38.1 million in the third quarter of 2009.  The net interest margin on a fully taxable equivalent basis increased to 4.09% in the third quarter compared to 4.05% in the second quarter of 2010 and 3.94% in the third quarter of 2009.  Net interest income remains strong despite declines in average loans of $24.8 million and average securities of $27.0 million from the second quarter of 2010.  The increase in net interest margin is a result of lower deposit costs and an increase in interest collected on nonperforming loans.

Noninterest Income

Noninterest income increased to $12.3 million compared to $11.4 million in the second quarter of 2010 and $10.3 million in the third quarter of 2009.  The increase is primarily a result of mortgage banking activities including net derivative gains and higher loan sales.  Net gains on our mortgage derivatives of $0.7 million were reported in the third quarter compared to a loss in the second quarter of $0.1 million.  Gains on loan sales increased to $0.5 million from the prior quarter gains of $0.2 million due to a higher volume of loan activity and an improvement on the pricing of mortgage sales.  Mortgage banking gains were offset by a decrease in NSF fees of $0.2 million and a decrease in letter of credit fees of $0.3 million from the second quarter of 2010.

Asset Quality

Nonperforming assets remain stable at $82.7 million or 2.45% of total loans plus other real estate owned ("OREO") compared to $82.0 million or 2.41% in the second quarter of 2010 and down from $91.2 million or 2.64% in the third quarter of 2009.  Included in nonperforming assets were troubled debt restructurings (TDRs) of $14.6 million.  These TDRs are a result of our efforts to work directly with our customers in these challenging times.  Delinquency improved for the third quarter with total portfolio delinquency at 2.69% compared to 3.10% in the second quarter of 2010 and 3.57% in the third quarter of 2009.  Further, criticized and classified assets decreased $31.8 million or 8.7% from the second quarter of 2010.

"We are encouraged by the improving asset quality metrics that we experienced in the third quarter. Our focus remains on resolving these problem credits and moving them out of the portfolio as quickly and favorably as possible," Brice said.

The provision for loan losses was $8.3 million for the third quarter compared to $9.1 million for the second quarter of 2010 and $8.4 million in the third quarter of 2009.  Net charge-offs were $6.0 million for the third quarter compared to $18.2 million in the second quarter and $5.4 million in the third quarter of 2009.  

The allowance for loan losses at September 30, 2010 was $56.3 million or 1.67% of total loans, as compared to $54.0 million or 1.59% at June 30, 2010 and $60.9 million or 1.77% at September 30, 2009.  The allowance to nonperforming loans was 75% at September 30, 2010, 70% at June 30, 2010 and 70% at September 30, 2009.  Included in the allowance is $10.5 million of specific reserves compared to $8.0 million in the second quarter of 2010 and $17.9 million in the third quarter of 2009.

Noninterest Expense

Noninterest expense for the third quarter was $25.0 million compared to $25.7 million for the second quarter of 2010 and $24.8 million for the third quarter of 2009.  The decrease from the second quarter of 2010 primarily relates to a reduction in the reserve for unfunded loan commitments of $0.9 million compared to a reduction recorded in the second quarter of $0.4 million.  The reduction in the reserve is a result of a decrease in the volume of unfunded commitments.  Additionally, there was a $0.5 million reduction in legal expenses due to onetime legal costs incurred in the second quarter of 2010.  These decreases were offset by a write-off of an uncollectible receivable related to excess expenses of $0.9 million for a mutual fund advised by an affiliate, compared to a write-off in the second quarter of 2010 of $0.4 million.  The entire remaining receivable was written off in this quarter.

Financial Condition

Total assets were $4.1 billion at September 30, 2010 and June 30, 2010 compared to $4.2 billion at September 30, 2009.  The decrease from September 30, 2009 is attributable to lower loan balances due to pay-offs and charge-offs outpacing customer demand and also lower investment balances.  Total loans remain at $3.4 billion at September 30, 2010, June 30, 2010 and September 30, 2009.  Total commercial loans are down $24.2 million from the previous quarter and $54.7 million from September 30, 2009.

Total deposits were $3.3 billion at September 30, 2010, June 30, 2010 and September 30, 2009.  Demand deposits remain strong at $743.5 million as of September 30, 2010 compared to $732.6 million at June 30, 2010 and $673.9 million at September 30, 2009.  Total borrowings decreased to $168.7 million at September 30, 2010 from $227.2 million at June 30, 2010 and have decreased from $330.8 million at September 30, 2009.  Stable deposits and declines in earning assets have resulted in reductions in borrowings.

S&T's capital ratios continue to improve and exceed the "well-capitalized" thresholds of federal bank regulatory agencies with a tier 1 leverage capital ratio of 10.92%, tier 1 risk-based capital ratio of 12.97% and total risk-based capital ratio of 16.35%.  The increase in capital ratios is attributable to earnings retention and a reduction in risk-weighted assets.  S&T's tangible common equity ratio increased to 7.53% compared to 7.23% for the second quarter of 2010 and 6.48% for the third quarter of 2009.  

About S&T Bancorp, Inc.

Headquartered in Indiana, PA, S&T Bancorp, Inc. operates 53 offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jefferson and Westmoreland counties.  With assets of $4.1 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market System under the symbol STBA.

This information may contain forward-looking statements regarding future financial performance which are not historical facts and which involve risks and uncertainties. Actual results and performance could differ materially from those anticipated by these forward-looking statements.  Factors that could cause such a difference include, but are not limited to, general economic conditions, change in interest rates, deposit flows, loan demand, asset quality, including real estate and other collateral values and competition.  In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this press release contains or references, certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes 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 others in the financial services industry.  Although S&T believes that these non-GAAP financial measures enhance investors' understanding of S&T's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.  A reconciliation of these non-GAAP financial measures is presented in the attached financial data spreadsheet.  This information should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K for S&T Bancorp, Inc. and subsidiaries.

    
    
    
    
    S&T Bancorp, Inc.                               S&T Earnings Release - 6
    Consolidated Selected Financial Data
    Unaudited
    (Dollars in thousands, except per share data)
    
                                                2010       2010       2009
                                            ---------- ---------- ----------
                                               Third      Second     Third
                                              Quarter    Quarter    Quarter
                                            ---------- ---------- ----------
    
    Income Statements
    -----------------
    Interest Income                            $45,325    $45,561    $48,310
    Interest Expense                             8,352      8,936     11,477
                                            ---------- ---------- ----------
      Net Interest Income                       36,973     36,625     36,833
      Taxable Equivalent Adjustment              1,137      1,194      1,284
                                            ---------- ---------- ----------
      Net Interest Income (FTE)                 38,110     37,819     38,117
    
    Provision For Loan Losses                    8,278      9,127      8,382
                                            ---------- ---------- ----------
    
      Net Interest Income After Provisions
       (FTE)                                    29,832     28,692     29,735
                                            ---------- ---------- ----------
    
    Security Gains (Losses), Net                     6        103     (2,059)
    
    Service Charges and Fees                     2,974      3,166      3,305
    Wealth Management                            1,861      1,916      1,920
    Insurance                                    2,125      1,964      2,020
    Other                                        5,369      4,380      3,038
                                            ---------- ---------- ----------
    
      Total Noninterest Income                  12,329     11,426     10,283
    
    Salaries and Employee Benefits              11,887     11,811     12,284
    Occupancy and Equipment Expense, Net         2,863      2,987      2,882
    Data Processing Expense                      1,547      1,451      1,565
    FDIC Expense                                 1,359      1,398      1,526
    Other                                        7,292      8,088      6,582
                                            ---------- ---------- ----------
    
      Total Noninterest Expense                 24,948     25,735     24,839
                                            ---------- ---------- ----------
    
    Income Before Taxes                         17,219     14,486     13,120
    Taxable Equivalent Adjustment                1,137      1,194      1,284
    Applicable Income Taxes                      3,600      3,888      2,578
                                            ---------- ---------- ----------
    
      Net Income                                12,482      9,404      9,258
    Preferred Stock Dividends                    1,551      1,549      1,543
                                            ---------- ---------- ----------
    
    Net Income Available to Common
     Shareholders                              $10,931     $7,855     $7,715
                                            ========== ========== ==========
    
    Per Common Share Data:
    
    Shares Outstanding at End of Period     27,849,171 27,819,757 27,684,807
    Average Shares Outstanding -
     Diluted                                27,812,637 27,797,206 27,695,205
    Diluted Earnings Per Share                   $0.39      $0.28      $0.28
    Dividends Declared                           $0.15      $0.15      $0.15
    Common Book Value                           $16.83     $16.55     $15.77
    Tangible Common Book Value (1)              $10.61     $10.31      $9.44
    Market Value                                $17.42     $19.76     $12.96
    
    
    
    
    S&T Bancorp, Inc.                               S&T Earnings Release - 7
    Consolidated Selected Financial Data
    Unaudited
    (Dollars in thousands, except per share data)
    
                                                       For the Nine Months
                                                       Ended September 30,
                                                       2010           2009
                                                   ----------     ----------
    
    Income Statements
    -----------------
    Interest Income                                  $136,209       $147,961
    Interest Expense                                   26,697         38,434
                                                   ----------     ----------
      Net Interest Income                             109,512        109,527
      Taxable Equivalent Adjustment                     3,552          3,929
                                                   ----------     ----------
      Net Interest Income (FTE)                       113,064        113,456
    
    Provision For Loan Losses                          21,835         61,954
                                                   ----------     ----------
    
      Net Interest Income After Provisions (FTE)       91,229         51,502
                                                   ----------     ----------
    
    Security Gains (Losses), Net                          263         (4,601)
    
    Service Charges and Fees                            9,111          9,593
    Wealth Management                                   5,761          5,575
    Insurance                                           6,457          5,867
    Other                                              13,616         11,263
                                                   ----------     ----------
    
      Total Noninterest Income                         34,945         32,298
    
    Salaries and Employee Benefits                     36,263         36,637
    Occupancy and Equipment Expense, Net                8,923          8,987
    Data Processing Expense                             4,601          4,575
    FDIC Expense                                        4,059          6,914
    Other                                              24,769         25,927
                                                   ----------     ----------
    
      Total Noninterest Expense                        78,615         83,040
                                                   ----------     ----------
    
    Income (Loss) Before Taxes                         47,822         (3,841)
    Taxable Equivalent Adjustment                       3,552          3,929
    Applicable Income Taxes                            11,080         (6,530)
                                                   ----------     ----------
    
      Net Income (Loss)                                33,190         (1,240)
    Preferred Stock Dividends                           4,648          4,368
                                                   ----------     ----------
    
    Net Income (Loss) Available to Common
     Shareholders                                     $28,542        ($5,608)
                                                   ==========     ==========
    
    Per Common Share Data:
    
    Average Shares Outstanding - Diluted           27,789,910     27,654,570
    Diluted Earnings (Loss) Per Share                   $1.03         ($0.20)
    Dividends Declared                                  $0.45          $0.61
    
    
    
    
    S&T Bancorp, Inc.                               S&T Earnings Release - 8
    Consolidated Selected Financial Data
    Unaudited
    (Dollars in thousands)
    
                         2010               2010               2009
                      ----------         ----------         ----------
                        Third              Second             Third
                       Quarter            Quarter            Quarter
                      ----------         ----------         ----------
    
    Balance Sheet (Period-End)
    -------------------------
    Assets
      Cash               $88,157            $71,150            $68,111
      Securities         301,260            339,737            389,980
      Loans, Net       3,314,702          3,342,761          3,385,466
      Other Assets       393,989            385,590            364,667
        Total Assets  $4,098,108         $4,139,238         $4,208,224
                      ==========         ==========         ==========
    
    Liabilities and Shareholders' Equity
      Noninterest-bearing 
       Deposits         $743,453           $732,618           $673,863
      Interest-bearing
       Deposits        2,561,117          2,564,578          2,605,921
      Short-term
       Borrowings         48,189             96,246            143,980
      Long-term Debt     120,468            130,947            186,772
      Other Liabilities   50,374             48,646             56,006
      Shareholders' 
       Equity            574,507            566,203            541,682
        Total 
         Liabilities and 
         Shareholders' 
         Equity       $4,098,108         $4,139,238         $4,208,224
                      ==========         ==========         ==========
    
    Net Interest Margin (Quarterly Averages)
    ---------------------------------------
    Assets 
      Loans - FTE     $3,377,607  5.10%  $3,402,494  5.12%  $3,439,700  5.25%
      Securities/
       Other - FTE       315,823  3.82%     342,813  3.89%     397,106  4.11%
        Total Interest-
         earning 
         Assets        3,693,430  4.99%   3,745,307  5.01%   3,836,806  5.13%
      Noninterest-
       earning Assets    412,247            390,075            371,160
    Total Assets      $4,105,677         $4,135,382         $4,207,966
                      ==========         ==========         ==========
    
    Liabilities and Shareholders' Equity
      Now/Money 
       Market/
       Savings        $1,250,278  0.24%  $1,280,421  0.28%  $1,190,637  0.39%
      Certificates 
       of Deposits     1,309,880  1.89%   1,308,614  2.01%   1,413,302  2.20%
      Borrowed 
       funds < 1 year     62,011  0.24%      74,779  0.36%     162,450  0.34%
      Borrowed 
       funds > 1 year    121,218  4.26%     135,906  4.13%     199,945  4.63%
        Total Interest-
         bearing 
         Liabilities   2,743,387  1.21%   2,799,720  1.28%   2,966,334  1.54%
    
    Noninterest-bearing Liabilities:
      Demand Deposits    743,265            728,517            647,325
      Shareholders' 
       Equity/Other      619,025            607,145            594,307
        Total Noninterest-
         bearing 
         Liabilities   1,362,290          1,335,662          1,241,632
                       ---------          ---------          ---------
          Total 
           Liabilities 
           and 
           Shareholders' 
           Equity     $4,105,677         $4,135,382         $4,207,966
                      ==========         ==========         ==========
    
    Net Yield on Interest-
     Earning Assets               4.09%              4.05%              3.94%
    
    
    
    
    S&T Bancorp, Inc.                               S&T Earnings Release - 9
    Consolidated Selected Financial Data
    Unaudited
    (Dollars in thousands)
    
                          2010               2010               2009
                       ---------          ---------          ---------
                         Third              Second             Third
                        Quarter            Quarter            Quarter
                       ---------          ---------          ---------
    
    Loans (Period-End)
    ------------------
    Consumer
      Home Equity       $451,275           $451,274           $459,190
      Residential
       Mortgage          365,390            363,660            367,743
      Consumer
       Installment        76,148             76,755             81,454
      Construction         6,946              9,624             12,029
        Total Consumer
         Loans           899,759            901,313            920,416
    Commercial
      Commercial Real
       Estate          1,436,971          1,424,212          1,425,552
      Commercial & 
       Industrial        728,091            734,077            747,656
      Construction       306,162            337,127            352,723
        Total
         Commercial 
         Loans         2,471,224          2,495,416          2,525,931
                       ---------          ---------          ---------
    Total Loans       $3,370,983         $3,396,729         $3,446,347
                      ==========         ==========         ==========
    
    Nonperforming Loans (NPL)     % NPL              % NPL              % NPL
    -------------------------     -----              -----              -----
    Consumer
      Home Equity         $1,700  0.38%      $1,777  0.39%      $2,190  0.48%
      Residential
       Mortgage            5,159  1.41%       7,398  2.03%       5,302  1.44%
      Consumer Installment    89  0.12%          93  0.12%          46  0.06%
      Construction           530  7.63%           -     -            -     -
        Total Consumer
         Loans             7,478  0.83%       9,268  1.03%      $7,538  0.82%
    Commercial
      Commercial Real
       Estate             51,792  3.60%      51,070  3.59%      38,734  2.72%
      Commercial & 
       Industrial          8,469  1.16%       2,265  0.31%      12,595  1.68%
      Construction         7,600  2.48%      14,686  4.36%      27,587  7.82%
        Total Commercial
         Loans            67,861  2.75%      68,021  2.73%      78,916  3.12%
    Total Nonperforming
     Loans               $75,339  2.23%     $77,289  2.28%     $86,454  2.51%
                      ==========         ==========         ==========
    
    Construction and Commercial Real Estate (CRE) by Location
    ---------------------------------------------------------
    Pennsylvania      $1,382,894         $1,404,508         $1,450,293
    New York             102,315            101,741             90,006
    Ohio                  70,363             78,244             74,451
    West Virginia         21,852             15,994             11,834
    Tennessee             20,379             17,917             12,647
    Southeast Region      54,802             49,442             48,530
    Southwest Region      30,547             32,735             30,061
    Midwest Region        23,417             26,141             24,035
    Western Region        13,170             13,207             12,645
    Mid-Atlantic Region   12,327             11,925             12,296
    New England           11,067              9,485             11,477
      Total Construction
       and CRE by
       Location       $1,743,133         $1,761,339         $1,778,275
                      ==========         ==========         ==========
    
    
    
    
    S&T Bancorp, Inc.                              S&T Earnings Release - 10
    Consolidated Selected Financial Data
    Unaudited
    (Dollars in thousands)
    
                         2010               2010               2009
                      ----------         ----------         ----------
                        Third              Second             Third
                       Quarter            Quarter            Quarter
                      ----------         ----------         ---------- 
    
    Construction and 
     Commercial Real Estate - 
     NPL by Location               % NPL             % NPL              % NPL
    -------------------------      -----             -----              -----
    Pennsylvania         $45,760   3.31%    $50,100  3.57%     $43,342  2.99%
    New York               1,815   1.77%      3,253  3.20%      10,560 11.73%
    Ohio                       -      -           -     -            -     -
    West Virginia              -      -           -     -            -     -
    Tennessee                  -      -           -     -            -     -
    Southeast Region       2,457   4.48%      2,534  5.13%       1,836  3.78%
    Southwest Region       1,406   4.60%      3,522 10.76%       2,318  7.71%
    Midwest Region             -      -           -     -            -     -
    Western Region             -      -           -     -            -     -
    Mid-Atlantic Region        -      -           -     -            -     -
    New England            7,954  71.87%      6,347 66.92%       8,265 72.01%
      Total 
       Construction and
       CRE-NPL by 
       Location          $59,392  3.41%     $65,756  3.73%     $66,321  3.73%
                      ==========         ==========         ==========       
    
    Construction and Commercial Real Estate by Type
    -----------------------------------------------
    Retail/Strip Malls  $298,956           $297,864           $311,885
    Offices              227,663            224,011            242,321
    Residential Rental
     Properties          218,436            285,705            261,573
    Hotels               195,841            192,416            153,065
    Manufacturing/
     Industrial/
     Warehouse           128,820            137,427            126,222
    Flex/Mixed Use       112,081            102,616            101,811
    Real Estate 
     Development - 
     Commercial          103,110            104,927            104,476
    Real Estate 
     Development - 
     Residential          92,855             74,799             96,716
    Healthcare/
     Education            91,755             94,648             95,977
    Miscellaneous        273,616            246,926            284,229
      Total 
       Construction and
       CRE by Type    $1,743,133         $1,761,339         $1,778,275
                      ==========         ==========         ==========       
    
    Construction and 
     Commercial Real Estate - 
     NPL by Type                  % NPL              % NPL              % NPL
    -------------------------     -----              -----              -----
    Retail/Strip Malls    $3,866  1.29%      $5,463  1.83%      $6,568  2.11%
    Offices                3,036  1.33%       1,868  0.83%       1,195  0.49%
    Residential Rental 
     Properties           12,653  5.79%      15,706  5.50%       4,524  1.73%
    Hotels                 2,562  1.31%       3,562  1.85%       2,095  1.37%
    Manufacturing/
     Industrial/Warehouse    555  0.43%       3,634  2.64%           -     -
    Flex/Mixed Use         3,182  2.84%       2,375  2.31%       1,655  1.63%
    Real Estate 
     Development - 
     Commercial            9,181  8.90%       7,449  7.10%      12,165 11.64%
    Real Estate 
     Development - 
     Residential           4,965  5.35%       5,079  6.79%      14,445 14.94%
    Healthcare/Education   3,951  4.31%       3,423  3.62%       3,939  4.10%
    Miscellaneous         15,440  5.64%      17,197  6.96%      19,735  6.94%
      Total Construction
       and CRE-NPL 
       by Type           $59,391  3.41%     $65,756  3.73%     $66,321  3.73%
                      ==========         ==========         ==========       
    
    
    
    
    S&T Bancorp, Inc.                              S&T Earnings Release - 11
    Consolidated Selected Financial Data
    Unaudited
    (Dollars in thousands, except per share data)
    
                                             2010         2010         2009
                                           -------      -------      -------
                                            Third        Second       Third
                                           Quarter      Quarter      Quarter
                                           -------      -------      -------
    Asset Quality Data
    ------------------
    Nonaccrual Loans and Nonperforming
     Loans                                 $75,339      $77,289      $86,454
    Assets Acquired through Foreclosure
     or Repossession                         7,367        4,737        4,745
    Nonperforming Assets                    82,706       82,026       91,199
    Allowance for Loan Losses               56,281       53,968       60,880
    Nonperforming Loans / Loans               2.23%        2.28%        2.51%
    Nonperforming Assets / Loans plus OREO    2.45%        2.41%        2.64%
    Allowance for Loan Losses / Loans         1.67%        1.59%        1.77%
    Allowance for Loan Losses / 
     Nonperforming Loans                        75%          70%          70%
    Net Loan Charge-offs (Recoveries)        5,965       18,182        5,376
    Net Loan Charge-offs (Recoveries)
     (Annualized) /Average Loans              0.70%        2.14%        0.62%
    
    Profitability Ratios (Annualized)
    --------------------------------
    Common Return on Average Assets           1.06%        0.76%        0.73%
    Common Return on Average Tangible
     Assets (2)                               1.10%        0.80%        0.76%
    Common Return on Average Common Equity    7.61%        5.60%        5.67%
    Common Return on Average
     Tangible Common Equity (3)              14.93%       11.12%       11.75%
    Efficiency Ratio (FTE) (4)               49.46%       52.26%       51.32%
    
    Capitalization Ratios
    ---------------------
    Dividends Paid to Net Income             38.18%       53.08%       53.77%
    Common Equity / Assets                   11.43%       11.12%       10.37%
    Leverage Ratio                           10.92%       10.64%        9.92%
    Risk Based Capital - Tier I              12.97%       12.52%       11.57%
    Risk Based Capital - Total               16.35%       15.87%       14.86%
    Tangible Common Equity /
     Tangible Assets (5)                      7.53%        7.23%        6.48%
    
                                                    For the Nine Months Ended
                                                            September 30,
                                                          2010         2009
                                                        -------      -------
    Asset Quality Data
    ------------------
    Net Loan Charge-offs (Recoveries)                    25,134       43,763
    Net Loan Charge-offs (Recoveries) (Annualized) /
     Average Loans                                         0.99%        1.67%
    
    Profitability Ratios (Annualized)
    --------------------------------
    Common Return on Average Assets                        0.92%       -0.17%
    Common Return on Average Tangible Assets (6)           0.97%       -0.18%
    Common Return on Average Common Equity                 6.78%       -1.38%
    Common Return on Average Tangible Common Equity (7)   13.47%       -2.78%
    Efficiency Ratio (FTE) (4)                            53.12%       56.97%
    
    Capitalization Ratios
    ---------------------
    Dividends Paid to Net Income (Loss)                   43.81%     -379.37%
    
    
    
    
    S&T Bancorp, Inc.                              S&T Earnings Release - 12
    Consolidated Selected Financial Data
    Unaudited
    (Dollars in thousands, except per share data)
    
                                                   2010      2010      2009
                                                 -------   -------   -------
                                                  Third     Second    Third
                                                 Quarter   Quarter   Quarter
                                                 -------   -------   -------
    
    Definitions and Reconciliation of GAAP to
    -----------------------------------------
         Non-GAAP Financial Measures:
         ----------------------------
    
    (1)  Tangible Common Book Value
          Common Book Value (GAAP Basis)         $16.83     $16.55    $15.77
         Effect of Excluding Intangible Assets    (6.22)     (6.24)    (6.33)
         Tangible Common Book Value              $10.61     $10.31     $9.44
    
    (2)  Common Return on Average Tangible Assets
         Common Return on Average Assets
          (GAAP Basis)                             1.06%      0.76%     0.73%
         Effect of Excluding Intangible Assets     0.04%      0.04%     0.03%
         Common Return on Average Tangible Assets  1.10%      0.80%     0.76%
    
    (3)  Common Return on Average Tangible
          Common Equity
         Common Return on Average Common
          Equity (GAAP Basis)                      7.61%      5.60%     5.67%
         Effect of Excluding Intangible Assets     3.99%      3.02%     3.38%
         Effect of Excluding Preferred Stock       3.33%      2.50%     2.70%
         Common Return on Average
          Tangible Common Equity                  14.93%     11.12%    11.75%
    
    (4)  Recurring noninterest expense divided by recurring noninterest
         income plus net interest income, on a fully taxable equivalent basis.
    
    (5)  Tangible Common Equity / Tangible Assets
         Common Equity /Assets (GAAP Basis)       11.43%     11.12%    10.37%
         Effect of Excluding Intangible Assets    -3.90%     -3.89%    -3.89%
         Tangible Common Equity /Tangible Assets   7.53%      7.23%     6.48%
    
    
                                                    For the Nine Months Ended
                                                              September 30,
                                                             2010      2009
                                                           -------   -------
    
    (6)  Common Return on Average Tangible Assets
         Common Return on Average Assets (GAAP Basis)         0.92%    -0.17%
         Effect of Excluding Intangible Assets                0.05%    -0.01%
         Common Return on Average Tangible Assets             0.97%    -0.18%
    
    (7)  Common Return on Average Tangible Common Equity
         Common Return on Average Common Equity (GAAP Basis)  6.78%    -1.38%
         Effect of Excluding Intangible Assets                3.66%    -0.75%
         Effect of Excluding Preferred Stock                  3.03%    -0.65%
         Common Return on Average Tangible Common Equity     13.47%    -2.78%
    

SOURCE S&T Bancorp, Inc.



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