S&T Bancorp, Inc. Announces Increased Earnings

Apr 16, 2001, 01:00 ET from S&T Bancorp, Inc.

    INDIANA, Pa., April 16 /PRNewswire/ -- S&T Bancorp, Inc. (Nasdaq:   STBA)
 today announced increased earnings for the quarter ending March 31, 2001.
 Diluted earnings per share increased 7.5 percent to $0.43 per share from $0.40
 per share in the first quarter of 2000.  Net income rose 8.0 percent to
 $11.7 million from $10.8 million in the year ago period.
     Return on average equity was 16.6 percent as compared to 18.1 percent in
 the year ago quarter and 17.7 percent for the year 2000.  Without the effects
 of unrealized gains in the available for sale investment portfolio, return on
 average equity would have been 18.9 percent.  Return on assets was
 2.04 percent in the quarter, compared with 1.98 percent in the first quarter
 of 2000.
     James C. Miller, president and chief executive officer, commented, "It was
 a solid quarter for us given the volatility in the current interest rate
 environment.  Our net interest margin of 4.41 percent for the quarter was
 below the 4.43 percent margin for the first quarter of 2000.  Because we have
 experienced good loan growth, however, net interest income of $23.4 million
 was slightly above the year ago quarter of $22.8 million.  The dramatic drop
 in short-term rates during the quarter had a negative impact on our net
 interest margin.  While we were pleased, under the circumstances, with the
 margin revenue growth we achieved, earnings growth for the quarter was
 primarily driven by noninterest income."
     Noninterest income increased 22.7 percent or $6.4 million from the year
 ago quarter due to significant increases in wealth management, brokerage,
 equity call fees and equity security gains.
     S&T Investment Company continued to be a significant revenue source,
 generating $1.0 million in dividends, $0.2 million of equity call fees and
 $1.4 million of equity security gains for this quarter.  With a market value
 of $118.5 million, the equity portfolio had $43.8 million of unrealized gains
 at March 31, 2001, as compared to $32.1 million a year ago.  Miller added, "I
 am particularly pleased with the performance of S&T Investment Company in this
 market environment.  This portfolio not only provides income diversification,
 but has become a significant, sustainable source of revenue over the years."
     Total assets approximated $2.4 billion at March 31, 2001, an increase of
 over 5.0 percent from the year ago period.  Gross loans increased 8.6 percent
 or $129.1 million over the last 12 months.  Commercial loans accounted for all
 of the increase, as consumer loans decreased due to the attractiveness of
 secondary market rates on residential mortgage loans and the continuing run-
 off of indirect auto loans.  Deposits rose $95.1 million or 6.5 percent from
 March 31, 2000.
     Asset quality measurements remained strong at March 31, 2001.
 Nonperforming loans totaled $3.7 million or 0.23 percent of total loans at the
 end of the first quarter.  The allowance for loan losses was $28.0 million or
 1.71 percent of total loans, as of March 31, 2001.  The provision for loan
 losses was $1.0 million in the first quarter of 2001, the same as the first
 quarter of 2000.  Net charge-offs for the quarter were $0.4 million, or
 0.10 percent of average loans on an annualized basis.
     S&T Bancorp declared a $0.22 dividend per share on March 19, 2001, payable
 on April 25, 2001 to shareholders of record March 30, 2001.  This represents a
 10 percent increase over the cash dividend declared in the first quarter of
 2000.  The book value and market value of S&T common stock on March 31, 2001
 were $10.56 and $23.14 per share, respectively.  A stock buyback authorization
 for repurchasing up to 1 million shares remains in effect for 2001.
     Miller added, "We were very pleased to learn recently that S&T was named
 to the Keefe, Bruyette & Woods (KBW) 2001 Honor Roll based on our excellent
 record of earnings growth over the past ten years.  S&T was also named to the
 KBW 2000 Honor Roll, and we were happy that our performance once again
 warranted inclusion on this list.  Finally, while there are still many
 uncertainties regarding interest rates and the economy in general, we believe
 that the guidance provided earlier this year for S&T's 2001 earnings per share
 in the range of $1.75 - $1.79 is still valid."
 
     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, changes in interest rates, deposit flows, loan demand,
 real estate values and competition.
 
 

SOURCE S&T Bancorp, Inc.
    INDIANA, Pa., April 16 /PRNewswire/ -- S&T Bancorp, Inc. (Nasdaq:   STBA)
 today announced increased earnings for the quarter ending March 31, 2001.
 Diluted earnings per share increased 7.5 percent to $0.43 per share from $0.40
 per share in the first quarter of 2000.  Net income rose 8.0 percent to
 $11.7 million from $10.8 million in the year ago period.
     Return on average equity was 16.6 percent as compared to 18.1 percent in
 the year ago quarter and 17.7 percent for the year 2000.  Without the effects
 of unrealized gains in the available for sale investment portfolio, return on
 average equity would have been 18.9 percent.  Return on assets was
 2.04 percent in the quarter, compared with 1.98 percent in the first quarter
 of 2000.
     James C. Miller, president and chief executive officer, commented, "It was
 a solid quarter for us given the volatility in the current interest rate
 environment.  Our net interest margin of 4.41 percent for the quarter was
 below the 4.43 percent margin for the first quarter of 2000.  Because we have
 experienced good loan growth, however, net interest income of $23.4 million
 was slightly above the year ago quarter of $22.8 million.  The dramatic drop
 in short-term rates during the quarter had a negative impact on our net
 interest margin.  While we were pleased, under the circumstances, with the
 margin revenue growth we achieved, earnings growth for the quarter was
 primarily driven by noninterest income."
     Noninterest income increased 22.7 percent or $6.4 million from the year
 ago quarter due to significant increases in wealth management, brokerage,
 equity call fees and equity security gains.
     S&T Investment Company continued to be a significant revenue source,
 generating $1.0 million in dividends, $0.2 million of equity call fees and
 $1.4 million of equity security gains for this quarter.  With a market value
 of $118.5 million, the equity portfolio had $43.8 million of unrealized gains
 at March 31, 2001, as compared to $32.1 million a year ago.  Miller added, "I
 am particularly pleased with the performance of S&T Investment Company in this
 market environment.  This portfolio not only provides income diversification,
 but has become a significant, sustainable source of revenue over the years."
     Total assets approximated $2.4 billion at March 31, 2001, an increase of
 over 5.0 percent from the year ago period.  Gross loans increased 8.6 percent
 or $129.1 million over the last 12 months.  Commercial loans accounted for all
 of the increase, as consumer loans decreased due to the attractiveness of
 secondary market rates on residential mortgage loans and the continuing run-
 off of indirect auto loans.  Deposits rose $95.1 million or 6.5 percent from
 March 31, 2000.
     Asset quality measurements remained strong at March 31, 2001.
 Nonperforming loans totaled $3.7 million or 0.23 percent of total loans at the
 end of the first quarter.  The allowance for loan losses was $28.0 million or
 1.71 percent of total loans, as of March 31, 2001.  The provision for loan
 losses was $1.0 million in the first quarter of 2001, the same as the first
 quarter of 2000.  Net charge-offs for the quarter were $0.4 million, or
 0.10 percent of average loans on an annualized basis.
     S&T Bancorp declared a $0.22 dividend per share on March 19, 2001, payable
 on April 25, 2001 to shareholders of record March 30, 2001.  This represents a
 10 percent increase over the cash dividend declared in the first quarter of
 2000.  The book value and market value of S&T common stock on March 31, 2001
 were $10.56 and $23.14 per share, respectively.  A stock buyback authorization
 for repurchasing up to 1 million shares remains in effect for 2001.
     Miller added, "We were very pleased to learn recently that S&T was named
 to the Keefe, Bruyette & Woods (KBW) 2001 Honor Roll based on our excellent
 record of earnings growth over the past ten years.  S&T was also named to the
 KBW 2000 Honor Roll, and we were happy that our performance once again
 warranted inclusion on this list.  Finally, while there are still many
 uncertainties regarding interest rates and the economy in general, we believe
 that the guidance provided earlier this year for S&T's 2001 earnings per share
 in the range of $1.75 - $1.79 is still valid."
 
     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, changes in interest rates, deposit flows, loan demand,
 real estate values and competition.
 
 SOURCE  S&T Bancorp, Inc.