S&T Bancorp, Inc. Revises Full Year 2010 and Fourth Quarter Earnings

Mar 16, 2011, 06:51 ET from S&T Bancorp, Inc.

INDIANA, Pa., March 16, 2011 /PRNewswire/ -- S&T Bancorp, Inc. (Nasdaq: STBA) (S&T) today announced a revision to its previously reported full year 2010 and fourth quarter earnings. Subsequent to the earnings release on January 31, 2011, S&T determined that a modification of a participation loan had not been properly recorded in the second quarter of 2010. As a result, additional provision for loan losses was recorded in the fourth quarter of 2010. The table below summarizes the changes from the previously reported results:





















Fourth Quarter 2010



For the 12 Months Ended
December 31, 2010




As Revised



As Previously
Reported



As Revised



As Previously
Reported


(in thousands, except per share data)


















Net Income Available to Common Shareholders


$

8,737



$

11,449



$

37,279



$

39,991


Diluted Earnings per Common Share


$

0.31



$

0.41



$

1.34



$

1.44


Provision for Loan Losses


$

7,676



$

3,503



$

29,511



$

25,338





As a result of an evaluation, management identified a material weakness in S&T's internal control over financial reporting related to the approval and recording of loan charge-offs as of December 31, 2010. Management is taking the necessary steps to remediate this material weakness.

The following pages provide a complete update to the previously reported results. Full financial results will be available as part of S&T Bancorp's Form 10-K filing, which is expected to be filed on March 15, 2011.

About S&T Bancorp, Inc.

Headquartered in Indiana, PA, S&T Bancorp, Inc. operates 51 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.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands, except per share data)












For the 12 Months Ended December 31,




2010



2009


Income Statements









Interest Income


$

180,419



$

195,087


Interest Expense



34,573




49,105











Net Interest Income



145,846




145,982


Taxable Equivalent Adjustment



4,627




5,202











Net Interest Income (FTE)



150,473




151,184


Provision For Loan Losses



29,511




72,354











Net Interest Income After Provisions (FTE)



120,962




78,830











Security Gains (Losses), Net



274




(5,088)





Service Charges and Fees



11,713




12,942


Wealth Management



7,808




7,500


Insurance



8,312




7,751


Other



19,103




15,475











Total Noninterest Income



46,936




43,668


Salaries and Employee Benefits



48,715




48,848


Occupancy and Equipment Expense, Net



12,046




11,886


Data Processing Expense



6,145




6,048


FDIC Expense



5,426




8,388


Other



33,301




32,956











Total Noninterest Expense



105,633




108,126











Income Before Taxes



62,539




9,284


Taxable Equivalent Adjustment



4,627




5,202


Applicable Income Taxes



14,432




(3,869)











Net Income



43,480




7,951


Preferred Stock Dividends



6,201




5,913











Net Income Available to Common Shareholders


$

37,279



$

2,038














Per Common Share Data:












Average Shares Outstanding - Diluted



27,813,406




27,658,861


Diluted Earnings Per Share


$

1.34



$

0.07


Dividends Declared


$

0.60



$

0.61





S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands, except per share data)
















2010



2010



2009




Fourth
Quarter



Third
Quarter



Fourth
Quarter


Income Statements













Interest Income


$

44,210



$

45,325



$

47,126


Interest Expense



7,876




8,352




10,671















Net Interest Income



36,334




36,973




36,455


Taxable Equivalent Adjustment



1,075




1,137




1,274















Net Interest Income (FTE)



37,409




38,110




37,729


Provision For Loan Losses



7,676




8,278




10,399















Net Interest Income After Provisions (FTE)



29,733




29,832




27,330















Security Gains (Losses), Net



11




6




(487)


Service Charges and Fees



2,602




2,974




3,349


Wealth Management



2,047




1,861




1,924


Insurance



1,855




2,125




1,884


Other



5,487




5,369




4,213















Total Noninterest Income



11,991




12,329




11,370


Salaries and Employee Benefits



12,452




11,887




12,211


Occupancy and Equipment Expense, Net



3,123




2,863




2,898


Data Processing Expense



1,544




1,547




1,473


FDIC Expense



1,367




1,359




1,475


Other



8,532




7,292




7,031















Total Noninterest Expense



27,018




24,948




25,088















Income Before Taxes



14,717




17,219




13,125


Taxable Equivalent Adjustment



1,075




1,137




1,274


Applicable Income Taxes



3,352




3,600




2,660















Net Income



10,290




12,482




9,191


Preferred Stock Dividends



1,553




1,551




1,545















Net Income Available to Common Shareholders


$

8,737



$

10,931



$

7,646



















Per Common Share Data:

















Shares Outstanding at End of Period



27,951,689




27,849,171




27,746,554


Average Shares Outstanding - Diluted



27,883,109




27,812,637




27,701,846


Diluted Earnings Per Share


$

0.31



$

0.39



$

0.28


Dividends Declared


$

0.15



$

0.15



$

0.00


Common Book Value


$

16.91



$

16.83



$

16.14


Tangible Common Book Value (1)


$

10.73



$

10.61



$

9.85


Market Value


$

22.59



$

17.42



$

17.01





S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands, except per share data)




















For the 12 Months Ended December 31,







2010






2009





Net Interest Margin (Yearly Averages)

















Assets

















Loans - FTE


$

3,386,103




5.09

%


$

3,473,169




5.26

%

Securities/Other - FTE



326,757




3.90

%



413,927




4.23

%


















Total Interest-earning Assets



3,712,860




4.98

%



3,887,096




5.15

%

Noninterest-earning Assets



410,595








372,192























Total Assets


$

4,123,455







$

4,259,288




























Liabilities and Shareholders' Equity

















Now/Money Market/Savings


$

1,267,708




0.26

%


$

1,243,958




0.41

%

Certificates of Deposits



1,300,803




1.95

%



1,367,372




2.44

%

Borrowed funds < 1 year



78,963




0.27

%



190,948




0.36

%

Borrowed funds > 1 year



133,539




4.23

%



217,664




4.59

%


















Total Interest-bearing Liabilities



2,781,013




1.24

%



3,019,942




1.63

%






Noninterest-bearing Liabilities:

















Demand Deposits



728,708








637,434






Shareholders' Equity/Other



613,734








601,912























Total Noninterest-bearing Liabilities



1,342,442








1,239,346























Total Liabilities and Shareholders' Equity


$

4,123,455







$

4,259,288




























Net Yield on Interest-earning Assets







4.05

%







3.89

%
































2010






2010






2009







Fourth
Quarter






Third
Quarter






Fourth
Quarter





Net Interest Margin (Quarterly Averages)

























Assets

























Loans - FTE


$

3,360,786




5.02

%


$

3,377,607




5.10

%


$

3,412,510




5.17

%

Securities/Other - FTE



296,270




3.77

%



315,823




3.82

%



385,966




4.09

%


























Total Interest-earning Assets



3,657,056




4.92

%



3,693,430




4.99

%



3,798,476




5.06

%

Noninterest-earning Assets



460,073








412,247








368,819































Total Assets


$

4,117,129







$

4,105,677







$

4,167,295






































Liabilities and Shareholders' Equity

























Now/Money Market/Savings


$

1,289,946




0.25

%


$

1,250,278




0.24

%


$

1,249,343




0.41

%

Certificates of Deposits



1,268,473




1.82

%



1,309,880




1.89

%



1,339,761




2.15

%

Borrowed funds < 1 year



48,121




0.11

%



62,011




0.24

%



114,129




0.27

%

Borrowed funds > 1 year



120,192




4.16

%



121,218




4.26

%



183,165




4.45

%


























Total Interest-bearing Liabilities



2,726,732




1.15

%



2,743,387




1.21

%



2,886,398




1.47

%








Noninterest-bearing Liabilities:

























Demand Deposits



757,857








743,265








682,095






Shareholders' Equity/Other



632,540








619,025








598,802































Total Noninterest-bearing Liabilities



1,390,397








1,362,290








1,280,897































Total Liabilities and Shareholders' Equity


$

4,117,129







$

4,105,677







$

4,167,295






































Net Yield on Interest-earning Assets







4.06

%







4.09

%







3.94

%




S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands, except per share data)
















2010



2010



2009




Fourth
Quarter



Third
Quarter



Fourth
Quarter


Balance Sheet (Period-End)













Assets













Cash


$

108,196



$

88,157



$

69,201


Securities



310,390




301,260




378,402


Loans, Net



3,312,540




3,314,702




3,344,827


Other Assets



383,213




393,989




378,045















Total Assets


$

4,114,339



$

4,098,108



$

4,170,475



















Liabilities and Shareholders' Equity













Noninterest-bearing Deposits


$

765,812



$

743,453



$

712,120


Interest-bearing Deposits



2,551,712




2,561,117




2,592,421


Short-term Borrowings



40,653




48,189




96,235


Long-term Debt



119,984




120,468




176,513


Other Liabilities



57,513




50,374




39,868


Shareholders' Equity



578,665




574,507




553,318















Total Liabilities and Shareholders' Equity


$

4,114,339



$

4,098,108



$

4,170,475





















2010



2010



2009




Fourth
Quarter



Third
Quarter



Fourth
Quarter


Loans (Period-End)













Consumer













Home Equity


$

441,096



$

451,275



$

458,643


Residential Mortgage



367,873




365,390




363,466


Consumer



74,780




76,148




81,141


Construction



4,019




6,946




11,836















Total Consumer Loans



887,768




899,759




915,086


Commercial













Commercial Real Estate



1,494,202




1,436,971




1,428,329


Commercial & Industrial



722,359




728,091




701,650


Construction



259,598




306,162




359,342















Total Commercial Loans



2,476,159




2,471,224




2,489,321















Total Loans


$

3,363,927



$

3,370,983



$

3,404,407














































2010






2010






2009







Fourth
Quarter






Third
Quarter






Fourth
Quarter










% NPL






% NPL






% NPL


Nonperforming Loans (NPL)

























Consumer

























Home Equity


$

1,432




0.32

%


$

1,700




0.38

%


$

2,252




0.49

%

Residential Mortgage



5,996




1.63

%



5,159




1.41

%



5,583




1.54

%

Consumer



65




0.09

%



89




0.12

%



20




0.02

%

Construction



526




13.09

%



530




7.63

%
































Total Consumer Loans



8,019




0.90

%



7,478




0.83

%


$

7,855




0.86

%

Commercial

























Commercial Real Estate



44,310




2.97

%



51,792




3.60

%



53,789




3.77

%

Commercial & Industrial



3,567




0.49

%



8,469




1.16

%



7,489




1.07

%

Construction



7,987




3.08

%



7,600




2.48

%



21,674




6.03

%


























Total Commercial Loans



55,864




2.26

%



67,861




2.75

%



82,952




3.33

%


























Total Nonperforming Loans



63,883




1.90

%


$

75,339




2.23

%


$

90,807




2.67

%





























S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands, except per share data)
















2010



2010



2009




Fourth
Quarter



Third
Quarter



Fourth
Quarter


Construction and Commercial Real Estate (CRE) by Location













Pennsylvania


$

1,390,635



$

1,382,894



$

1,427,794


New York



106,580




102,315




104,111


Ohio



74,330




70,363




75,641


West Virginia



21,195




21,852




14,341


Tennessee



17,037




20,379




15,253


Southeast Region



49,903




54,802




54,255


Southwest Region



29,807




30,547




31,521


Midwest Region



29,740




23,417




25,998


Mid-Atlantic Region



13,705




12,327




14,875


Western Region



13,009




13,170




13,223


New England



7,859




11,067




10,659















Total Construction and CRE by Location


$

1,753,800



$

1,743,133



$

1,787,671

















































% NPL






% NPL






% NPL


Construction and Commercial Real Estate - NPL by Location

























Pennsylvania


$

43,515




3.13

%


$

45,760




3.31

%


$

55,413




3.88

%

New York



1,533




1.44

%



1,815




1.77

%



5,847




5.62

%

Ohio



















West Virginia



















Tennessee



















Southeast Region



1,716




3.44

%



2,457




4.48

%



3,019




5.56

%

Southwest Region



760




2.55

%



1,406




4.60

%



3,712




11.78

%

Midwest Region



















Mid-Atlantic Region



















Western Region



















New England



4,773




60.73

%



7,954




71.87

%



7,472




70.10

%


























Total Construction and CRE - NPL by Location


$

52,297




2.98

%


$

59,392




3.41

%


$

75,463




4.22

%





























S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands)
















2010



2010



2009




Fourth
Quarter



Third
Quarter



Fourth
Quarter


Construction and Commercial Real Estate by Type













Retail/Strip Malls


$

304,324



$

298,956



$

278,840


Residential Rental Properties



242,756




218,436




268,818


Offices



232,655




227,663




247,098


Hotels



192,954




195,841




165,953


Manufacturing/Industrial/Warehouse



118,791




128,820




121,928


Flex/Mixed Use



118,610




112,081




107,324


Healthcare/Education



95,029




91,755




101,500


Real Estate Development - Commercial



90,136




103,110




106,762


Real Estate Development - Residential



88,487




92,855




83,352


Miscellaneous



270,058




273,616




306,096















Total Construction and CRE by Type


$

1,753,800



$

1,743,133



$

1,787,671














































2010






2010






2009







Fourth
Quarter






Third
Quarter






Fourth
Quarter










% NPL






% NPL






% NPL


Construction and Commercial Real Estate - NPL by Type

























Retail/Strip Malls


$

3,176




1.04

%


$

3,866




1.29

%


$

4,999




1.79

%

Residential Rental Properties



11,087




4.57

%



12,653




5.79

%



5,254




1.95

%

Offices



2,720




1.17

%



3,036




1.33

%



1,426




0.58

%

Hotels



1,465




0.76

%



2,562




1.31

%



2,095




1.26

%

Manufacturing/Industrial/Warehouse



1,944




1.64

%



555




0.43

%



3,632




2.98

%

Flex/Mixed Use



2,740




2.31

%



3,182




2.84

%



6,113




5.70

%

Healthcare/Education



1,509




1.59

%



3,951




4.31

%



3,566




3.51

%

Real Estate Development - Commercial



5,525




6.13

%



9,181




8.90

%



10,493




9.83

%

Real Estate Development - Residential



6,693




7.56

%



4,965




5.35

%



9,362




11.23

%

Miscellaneous



15,438




5.72

%



15,441




5.64

%



28,523




9.32

%


























Total Construction and CRE - NPL by Type


$

52,297




2.98

%


$

59,392




3.41

%


$

75,463




4.22

%





























S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands, except per share data)
















2010



2010



2009




Fourth
Quarter



Third
Quarter



Fourth
Quarter


Asset Quality Data













Nonaccrual Loans and Nonperforming Loans


$

63,883



$

75,339



$

90,807


Assets Acquired through Foreclosure or Repossession



5,820




7,367




4,607


Nonperforming Assets



69,703




82,706




95,414


Restructured Loans (nonaccrual)



32,779




14,618




1,409


Restructured Loans (accruing)



2,139




1,268





Total Restructured Loans



34,918




15,886




1,409


Allowance for Loan Losses



51,387




56,281




59,580


Nonperforming Loans / Loans



1.90

%



2.23

%



2.67

%

Nonperforming Assets / Loans plus OREO



2.07

%



2.45

%



2.80

%

Allowance for Loan Losses / Loans



1.53

%



1.67

%



1.75

%

Allowance for Loan Losses / Nonperforming Loans



80

%



75

%



66

%

Net Loan Charge-offs (Recoveries)



12,570




5,965




11,699


Net Loan Charge-offs (Recoveries) (Annualized) / Average Loans



1.48

%



0.70

%



1.36

%





Profitability Ratios (Annualized)













Common Return on Average Assets



0.84

%



1.06

%



0.73

%

Common Return on Average Tangible Assets (2)



0.88

%



1.10

%



0.76

%

Common Return on Average Equity



6.00

%



7.61

%



5.56

%

Common Return on Average Tangible Common Equity (3)



11.59

%



14.93

%



11.42

%

Efficiency Ratio (FTE) (4)



54.69

%



49.46

%



51.10

%





Capitalization Ratios













Dividends Paid to Net Income



47.82

%



38.18

%



54.31

%

Common Equity / Assets



11.48

%



11.43

%



10.74

%

Leverage Ratio



11.07

%



10.92

%



10.26

%

Risk Based Capital - Tier I



13.28

%



12.97

%



12.10

%

Risk Based Capital - Total



16.68

%



16.35

%



15.43

%

Tangible Common Equity / Tangible Assets (5)



7.61

%



7.53

%



6.84

%
















For the 12 Months Ended December 31,




2010



2009


Asset Quality Data









Net Loan Charge-offs (Recoveries)


$

37,704



$

55,463


Net Loan Charge-offs (Recoveries) (Annualized) / Average Loans



1.11

%



1.60

%




Profitability Ratios









Common Return on Average Assets



0.90

%



0.05

%

Common Return on Average Tangible Assets (6)



0.94

%



0.05

%

Common Return on Average Equity



6.58

%



0.37

%

Common Return on Average Tangible Common Equity (7)



12.98

%



0.76

%

Efficiency Ratio (FTE) (4)



53.51

%



55.49

%




Capitalization Ratios









Dividends Paid to Net Income



44.75

%



1247.64

%




S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(Dollars in thousands, except per share data)
















2010



2010



2009




Fourth
Quarter



Third
Quarter



Fourth
Quarter


Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

















(1) Tangible Common Book Value













Common Book Value (GAAP Basis)


$

16.91



$

16.83



$

16.14


Effect of Excluding Intangible Assets



(6.18)




(6.22)




(6.29)















Tangible Common Book Value


$

10.73



$

10.61



$

9.85






(2) Common Return on Average Tangible Assets













Common Return on Average Assets (GAAP Basis)



0.84

%



1.06

%



0.73

%

Effect of Excluding Intangible Assets



0.04

%



0.04

%



0.03

%














Common Return on Average Tangible Assets



0.88

%



1.10

%



0.76

%





(3) Common Return on Average Tangible Common Equity













Common Return on Average Common Equity (GAAP Basis)



6.00

%



7.61

%



5.56

%

Effect of Excluding Intangible Assets



3.03

%



3.99

%



3.24

%

Effect of Excluding Preferred Stock



2.56

%



3.33

%



2.62

%














Common Return on Average Tangible Common Equity



11.59

%



14.93

%



11.42

%


(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)



11.48

%



11.43

%



10.74

%

Effect of Excluding Intangible Assets



-3.87

%



-3.90

%



-3.90

%














Tangible Common Equity / Tangible Assets



7.61

%



7.53

%



6.84

%
















For the 12 Months Ended December 31,




2010



2009


(6) Common Return on Average Tangible Assets









Common Return on Average Assets (GAAP Basis)



0.90

%



0.05

Effect of Excluding Intangible Assets



0.04

%



0.00










Common Return on Average Tangible Assets



0.94

%



0.05




(7) Common Return on Average Tangible Common Equity









Common Return on Average Equity (GAAP Basis)



6.58

%



0.37

Effect of Excluding Intangible Assets



3.49

%



0.21

Effect of Excluding Preferred Stock



2.91

%



0.18










Common Return on Average Tangible Common Equity



12.98

%



0.76




(Logo:  https://photos.prnewswire.com/prnh/20070917/NEM099LOGO )

SOURCE S&T Bancorp, Inc.



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