S&T Bancorp, Inc. Announces 2011 Results Jan 23, 2012

January 23, 2012

INDIANA, Pa., Jan. 23, 2012/PRNewswire/ -- S&T Bancorp, Inc. (NASDAQ: STBA), a full-service financial institution with office locations in 10 Pennsylvaniacounties, has announced its full year and fourth quarter earnings for 2011. 

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

• Full year 2011 earnings increased 6% to $39.7 millionor $1.41diluted earnings per common share compared to 2010 earnings of $37.3 millionor $1.34diluted earnings per common share.
• Fourth quarter earnings were $9.3 million, with diluted earnings per common share of $0.33compared to $0.44in the third quarter of 2011 and $0.31in the fourth quarter of 2010.
• Redeemed $108.7 millionof preferred stock from the U.S. Department of Treasury's Capital Purchase Program (CPP) without raising additional capital.
• Asset quality metrics continue to show improvement with nonperforming assets to total loans plus other real estate owned (OREO) down to 1.92% compared to 2.08% in the third quarter of 2011 and 2.07% in the fourth quarter of 2010.

"In 2011, S&T Bank had success in two areas that will generate plenty of momentum as we move into 2012," said Todd D. Brice, president and chief executive officer.   "First, we redeemed all of the preferred stock we issued through the U.S. Treasury's Capital Purchase Program, a move that will boost earnings in 2012 by $0.22per share.  Second, we announced the pending acquisition of Mainline Bancorp, which is expected to close in the first quarter of 2012.  This merger will capitalize on the synergies between our two banks and give us a greater presence in key regions that include Blairand Cambriacounties."

U.S. Treasury's Capital Purchase Program

During the fourth quarter, S&T redeemed all of the preferred stock it sold to the U.S. Department of the Treasury in January of 2009 as part of the CPP.   S&T's strong capital position allowed for the repurchase of the preferred shares without raising additional capital and without any conditions from regulators.  S&T used available cash to fund the repurchase of the outstanding preferred stock for $108.7 millionand the payment of the final dividend of $0.3 million.  As a result of this redemption, a one-time non-cash reduction in net income available to common shareholders of approximately $1.8 millionor $0.06per common diluted share was recognized to accelerate the accretion of the discount for the preferred stock.

Net Interest Income (FTE)

Net interest income and net interest margin on a fully taxable equivalent basis decreased from the prior year primarily due to a shift in asset mix from loans to lower yielding securities.  This shift in asset mix is a result of significant loan pay downs during 2011.  Net interest income for the full year 2011 was $141.5 millioncompared to $150.5 millionin 2010.  The net interest margin declined in 2011 to 3.83% from 4.05% in 2010.  Average loans decreased $169.2 millionfrom the prior year, while the yield decreased by 21 basis points to 4.88%.  The decrease in loans was offset by an increase in average securities of $153.0 millionmainly due to an increase in excess funds held at the Federal Reserve.  These excess funds have decreased the yield on securities by 132 basis points to 2.58%.  

Net interest income for the fourth quarter of 2011 was $35.2 millioncompared to $34.9 millionin the third quarter of 2011.  The net interest margin increased to 3.79% in the fourth quarter of 2011 compared to 3.76% in the third quarter of 2011.  The increase in income and rate is due to favorable borrowing and certificate of deposit repricing, combined with higher loan related fees.

Asset Quality

Asset quality metrics continue to show improvement.  Nonperforming assets decreased to $60.1 millionor 1.92% of total loans plus OREO compared to $65.2 millionor 2.08% in the third quarter of 2011 and down from $69.7 millionor 2.07% in the fourth quarter of 2010.  Included in nonperforming assets were troubled debt restructurings (TDRs) of $18.2 million.  These restructured loans are a result of our continued efforts to work directly with our customers through the current challenging economic cycle.  

The provision for loan losses decreased in 2011 to $15.6 millionfrom $29.5 millionin 2010.  Net charge-offs were also down significantly in 2011, to 0.56% of average loans compared to 1.11% in 2010.  For the fourth quarter of 2011, the provision for loan losses was $2.3 millioncompared to $1.5 millionfor the third quarter of 2011 and $7.7 millionin the fourth quarter of 2010.  Net charge-offs were $5.0 millionfor the fourth quarter compared to $8.0 millionin the third quarter and $12.6 millionin the fourth quarter of 2010.  The decrease in provision during 2011 is primarily a result of a general improvement in asset quality. 

The allowance for loan losses at December 31, 2011was $48.8 millionor 1.56% of total loans, as compared to $51.5 millionor 1.64% at September 30, 2011and $51.4 millionor 1.53% at December 31, 2010.  The allowance to nonperforming loans was 87% at both December 31, 2011and September 30, 2011and 80% at December 31, 2010. Included in the allowance is $5.5 millionof specific reserves compared to $2.9 millionin the third quarter of 2011 and $3.6 millionin the fourth quarter of 2010.

Noninterest Income

Noninterest income decreased $2.7 millionto $44.2 millionfor the full year 2011 compared to $46.9for the full year 2010.  The decrease from the prior year primarily relates to a $2.2 milliondecline in mortgage banking and a $1.2 milliondecline in service charges and fees on deposits.  The decrease in mortgage banking is due to lower volume of loan sales in the secondary market.  The decrease in service charges and fees relates to a $1.8 milliondecline in overdraft fees due to regulatory changes that took effect in August 2010.  This decrease was partially offset by an increase in new deposit related fees of $0.5 millionin 2011.

Noninterest income for the fourth quarter increased to $11.6 millioncompared to $10.4 millionin the third quarter of 2011.  The increase of $1.2 millionprimarily relates to mortgage banking activities.  During the third quarter, lower interest rates resulted in a decrease in the value of the mortgage servicing rights asset of $0.8 million, and in the fourth quarter, increased activity resulted in an increase in fees of $0.2 million. 

Noninterest Expense

Noninterest expense decreased for the full year 2011 by $1.7 millionto $103.9 millioncompared to $105.6 millionin 2010.  The decrease was driven by a reduction of $1.9 millionin FDIC expense as a result of a change in methodology for the assessment and a $1.1 milliondecrease in loan collection fees as asset quality improved.  During 2010 there were one time costs of $2.3 millionfor a legal settlement and a $1.1 millionwrite-off of start-up expenses for a mutual fund advised by an affiliate. These decreases were offset by higher salaries and benefits cost of $1.5 millionprimarily related to annual merit increases. 

Noninterest expense for the fourth quarter was $26.7 millioncompared to $24.2 millionfor the third quarter of 2011.  The increase from the third quarter of 2011 includes higher salaries and benefits of $1.2 millionprimarily related to higher medical cost in the current quarter and increased incentive plan expense.  Also, there was a reduction in the reserve for unfunded loan commitments of $1.2 millionin the third quarter compared to a reduction of $0.5 millionin the fourth quarter.  The $0.5 millionreduction in reserves in the fourth quarter is due to a decline in available commitments. 

Financial Condition

Total assets have remained relatively unchanged since the fourth quarter of 2010 at $4.1 billion.  The decline in loan balances has been offset by commensurate increases in securities, primarily excess cash held at the Federal Reserve.  An encouraging sign is the significant slowdown in the decline of loan balances experienced in the fourth quarter of 2011.  Gross loans decreased by only $3.5 millionin the fourth quarter compared to a decrease of $227.8 millionin the first three quarters of 2011.  Deposits remained little changed at $3.3 billionsince the fourth quarter of 2010, although with some improvement in mix.

S&T's capital ratios declined due to the redemption of the CPP, but remain significantly above the "well capitalized" thresholds of federal bank regulatory agencies with a tier 1 leverage capital ratio of 9.17%, tier 1 risk-based capital ratio of 11.63% and total risk-based capital ratio of 15.20%.  S&T's tangible common equity ratio was 8.09% for the fourth quarter of 2011 compared to 8.30% for the third quarter of 2011 and 7.61% for the fourth quarter of 2010.  The decline in the fourth quarter of 2011 is due to an increase in the pension liability caused by a lower discount rate.

About S&T Bancorp, Inc.

Headquartered in Indiana, PA, S&T Bancorp, Inc. operates offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jeffersonand Westmorelandcounties.  With assets of $4.1 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market System under the symbol STBA.  For more information, visit .

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
(in thousands, except per share data)
	For the Twelve Months Ended December 31,
		2011		2010
Income Statements
Interest Income		$165,079		$180,419
Interest Expense		27,733		34,573
Net Interest Income		137,346		145,846
Taxable Equivalent Adjustment		4,155		4,627
Net Interest Income (FTE)		141,501		150,473
Provision For Loan Losses		15,609		29,511
Net Interest Income After Provisions (FTE)		125,892		120,962
Security (Losses) Gains, Net		(124)		274
Service Charges and Fees		9,978		11,178
Wealth Management		8,180		7,808
Insurance		8,314		8,312
Other		17,709		19,638
Total Noninterest Income		44,181		46,936
Salaries and Employee Benefits		51,078		48,715
Occupancy and Equipment Expense, Net		11,884		11,982
Data Processing Expense		6,853		6,145
FDIC Expense		3,570		5,426
Other		30,523		33,365
Total Noninterest Expense		103,908		105,633
Income Before Taxes		66,041		62,539
Taxable Equivalent Adjustment		4,155		4,627
Applicable Income Taxes		14,622		14,432
Net Income		47,264		43,480
Preferred Stock Dividends and Discount Amortization		7,611		6,201
Net Income Available to Common Shareholders		$39,653		$37,279
Per Common Share Data:
Average Shares Outstanding - Diluted		27,990,150		27,813,406
Net Income - Diluted *		$1.41		$1.34
Dividends Declared		$0.60		$0.60
* Diluted earnings per share under the two-class method is determined on the net income reported on the income statement less earnings allocated to participating securities.

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands, except per share data)
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Income Statements
Interest Income	$40,258		$40,845		$44,210
Interest Expense	6,192		6,976		7,876
Net Interest Income	34,066		33,869		36,334
Taxable Equivalent Adjustment	1,101		1,002		1,075
Net Interest Income (FTE)	35,167		34,871		37,409
Provision For Loan Losses	2,336		1,535		7,676
Net Interest Income After Provisions (FTE)	32,831		33,336		29,733
Security (Losses) Gains, Net	-		(81)		11
Service Charges and Fees	2,622		2,683		2,473
Wealth Management	2,021		1,965		2,047
Insurance	1,809		2,192		1,855
Other	5,122		3,584		5,616
Total Noninterest Income	11,574		10,424		11,991
Salaries and Employee Benefits	13,446		11,741		12,452
Occupancy and Equipment Expense, Net	2,831		2,916		3,104
Data Processing Expense	1,925		1,743		1,544
FDIC Expense	678		749		1,367
Other	7,792		7,044		8,551
Total Noninterest Expense	26,672		24,193		27,018
Income Before Taxes	17,733		19,486		14,717
Taxable Equivalent Adjustment	1,101		1,002		1,075
Applicable Income Taxes	4,376		4,681		3,352
Net Income	12,256		13,803		10,290
Preferred Stock Dividends and Discount Amortization	2,939		1,559		1,553
Net Income Available to Common Shareholders	$9,317		$12,244		$8,737
Per Common Share Data:
Shares Outstanding at End of Period	28,131,249		28,106,451		27,951,689
Average Shares Outstanding - Diluted	28,068,064		28,025,419		27,883,109
Diluted Earnings Per Common Share *	$0.33		$0.44		$0.31
Dividends Declared	$0.15		$0.15		$0.15
Common Book Value	$17.44		$17.68		$16.91
Tangible Common Book Value (1)	$11.36		$11.58		$10.73
Market Value	$19.55		$16.16		$22.59
* Diluted earnings per share under the two-class method is determined on the net income reported on the income statement less earnings allocated to participating securities.

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
		For the Twelve Months Ended December 31,
			2011		2010
Net Interest Margin (FTE) (Yearly Averages)
Assets
Loans			$3,216,857	4.88%	$3,386,103	5.09%
Securities/Other			479,731	2.58%	326,757	3.90%
Total Interest-earning Assets			3,696,588	4.58%	3,712,860	4.98%
Noninterest-earning Assets			376,020		410,595
Total Assets			$4,072,608		$4,123,455
Liabilities and Shareholders' Equity
Now/Money Market/Savings			$1,297,360	0.15%	$1,267,708	0.26%
Certificates of Deposit			1,181,822	1.77%	1,300,803	1.95%
Borrowed Funds < 1 Year			42,135	0.13%	78,963	0.27%
Borrowed Funds > 1 Year			122,270	3.87%	133,539	4.23%
Total Interest-bearing Liabilities			2,643,587	1.05%	2,781,013	1.24%
Noninterest-bearing Liabilities
Demand Deposits			792,911		728,708
Shareholders' Equity/Other			636,110		613,734
Total Noninterest-bearing Liabilities			1,429,021		1,342,442
Total Liabilities and Shareholders' Equity			$4,072,608		$4,123,455
Net Interest Margin				3.83%		4.05%
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Net Interest Margin (FTE) (Quarterly Averages)
Assets
Loans	$3,126,126	4.83%	$3,171,379	4.85%	$3,360,786	5.02%
Securities/Other	562,541	2.32%	510,575	2.39%	296,270	3.77%
Total Interest-earning Assets	3,688,667	4.45%	3,681,954	4.51%	3,657,056	4.92%
Noninterest-earning Assets	381,191		376,077		460,073
Total Assets	$4,069,858		$4,058,031		$4,117,129
Liabilities and Shareholders' Equity
Now/Money Market/Savings	$1,338,276	0.14%	$1,287,489	0.14%	$1,289,946	0.25%
Certificates of Deposit	1,135,517	1.64%	1,159,557	1.81%	1,268,473	1.82%
Borrowed Funds < 1 Year	41,261	0.11%	41,257	0.12%	48,121	0.11%
Borrowed Funds > 1 Year	122,660	3.21%	123,103	3.93%	120,192	4.16%
Total Interest-bearing Liabilities	2,637,714	0.93%	2,611,406	1.06%	2,726,732	1.15%
Noninterest-bearing Liabilities
Demand Deposits	800,188		799,247		757,857
Shareholders' Equity/Other	631,956		647,378		632,540
Total Noninterest-bearing Liabilities	1,432,144		1,446,625		1,390,397
Total Liabilities and Shareholders' Equity	$4,069,858		$4,058,031		$4,117,129
Net Interest Margin		3.79%		3.76%		4.05%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Balance Sheets (Period-End)
Assets
Cash	$61,723		$58,552		$48,182
Securities	584,615		563,152		370,404
Loans, Net	3,083,768		3,084,609		3,312,540
Other Assets	389,888		385,657		383,213
Total Assets	$4,119,994		$4,091,970		$4,114,339
Liabilities and Shareholders' Equity
Noninterest-bearing Demand Deposits	$818,686		$817,518		$765,812
Interest-bearing Deposits	2,517,173		2,453,913		2,551,712
Short-term Borrowings	105,370		42,409		40,653
Long-term Debt	122,493		122,938		119,984
Other Liabilities	65,746		51,518		57,513
Shareholders' Equity	490,526		603,674		578,665
Total Liabilities and Shareholders' Equity	$4,119,994		$4,091,970		$4,114,339
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Loans (Period-End)
Consumer
Home Equity	$411,404		$423,166		$441,096
Residential Mortgage	358,846		350,619		359,536
Installment & Other Consumer	67,131		68,049		74,780
Construction	2,440		3,111		4,019
Total Consumer Loans	839,821		844,945		879,431
Commercial
Commercial Real Estate	1,415,333		1,414,398		1,494,202
Commercial & Industrial	685,753		681,866		722,359
Construction	188,852		190,974		259,598
Total Commercial Loans	2,289,938		2,287,238		2,476,159
Total Portfolio Loans	3,129,759		3,132,183		3,355,590
Loans Held for Sale	2,850		3,959		8,337
Total Loans	$3,132,609		$3,136,142		$3,363,927
Nonperforming Loans (NPL)
Consumer		% NPL		% NPL		% NPL
Home Equity	$2,936	0.71%	$3,095	0.73%	$1,432	0.32%
Residential Mortgage	7,228	2.01%	6,719	1.92%	5,996	1.67%
Installment & Other Consumer	4	0.01%	15	0.02%	65	0.09%
Construction	181	7.42%	181	5.82%	526	13.09%
Total Consumer Loans	10,349	1.23%	10,010	1.18%	8,019	0.91%
Commercial
Commercial Real Estate	31,648	2.24%	34,524	2.44%	44,310	2.97%
Commercial & Industrial	7,571	1.10%	6,002	0.88%	3,567	0.49%
Construction	6,547	3.47%	8,703	4.56%	7,987	3.08%
Total Commercial Loans	45,766	2.00%	49,229	2.15%	55,864	2.26%
Total Nonperforming Loans	$56,115	1.79%	$59,239	1.89%	$63,883	1.90%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Construction and Commercial Real Estate (CRE)
PA vs. Out-of-State
Pennsylvania	$1,301,211		$1,295,367		$1,390,635
Out-of-State	302,974		310,005		363,165
Total Construction and CRE PA vs. Out-of-State	$1,604,185		$1,605,372		$1,753,800
Construction and CRE - NPL PA vs. Out-of-State		% NPL		% NPL		% NPL
Pennsylvania	$33,665	2.59%	$38,864	3.00%	$43,515	3.13%
Out-of-State	4,530	1.50%	4,363	1.41%	8,782	2.42%
Total Construction and CRE - NPL PA vs. Out-of-State	$38,195	2.38%	$43,227	2.69%	$52,297	2.98%
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Construction and CRE by Type
Retail/Strip Malls	$288,453		$286,424		$304,324
Offices	218,619		216,815		232,655
Residential Rental Properties	198,011		198,422		242,756
Hotels	193,833		186,342		192,954
Healthcare/Education	105,642		107,871		95,029
Real Estate Development - Commercial	102,623		98,196		90,136
Flex/Mixed Use	97,766		95,578		118,610
Manufacturing/Industrial/Warehouse	95,883		99,382		118,791
Real Estate Development - Residential	60,808		73,145		88,487
Recreational	43,152		43,770		44,514
Restaurant	29,921		35,259		41,398
Convenience Stores	29,489		28,250		24,637
Miscellaneous	139,985		135,918		159,509
Total Construction and CRE by Type	$1,604,185		$1,605,372		$1,753,800
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Construction and CRE - NPL by Type		% NPL		% NPL		% NPL
Retail/Strip Malls	$5,285	1.83%	$2,371	0.83%	$3,176	1.04%
Offices	3,973	1.82%	5,124	2.36%	2,720	1.17%
Residential Rental Properties	2,851	1.44%	3,381	1.70%	11,087	4.57%
Hotels	700	0.36%	1,100	0.59%	1,465	0.76%
Healthcare/Education	311	0.29%	-	0.00%	1,509	1.59%
Real Estate Development - Commercial	771	0.75%	1,660	1.69%	5,525	6.13%
Flex/Mixed Use	-	0.00%	-	0.00%	2,740	2.31%
Manufacturing/Industrial/Warehouse	4,638	4.84%	5,183	5.22%	1,944	1.64%
Real Estate Development - Residential	6,284	10.33%	8,352	11.42%	6,693	7.56%
Recreational	9,365	21.70%	9,463	21.62%	9,344	20.99%
Restaurant	940	3.14%	4,153	11.78%	5,759	13.91%
Convenience Stores	-	0.00%	-	0.00%	-	0.00%
Miscellaneous	3,077	2.20%	2,440	1.80%	335	0.21%
Total Construction and CRE - NPL by Type	$38,195	2.38%	$43,227	2.69%	$52,297	2.98%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Commercial Credit Exposure
Pass
Commercial Real Estate	$1,229,005		$1,201,955		$1,297,242
Commercial & Industrial	600,895		601,552		619,011
Construction	136,270		148,084		221,492
Total Pass	$1,966,170		$1,951,591		$2,137,745
Special Mention
Commercial Real Estate	$84,400		$89,164		$86,653
Commercial & Industrial	33,135		19,450		76,158
Construction	17,106		10,432		16,308
Total Special Mention	$134,641		$119,046		$179,119
Substandard
Commercial Real Estate	$101,928		$123,279		$110,307
Commercial & Industrial	51,723		60,864		27,190
Construction	35,476		32,458		21,798
Total Substandard	$189,127		$216,601		$159,295

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Asset Quality Data
Nonperforming Loans	$56,115		$59,239		$63,883
Assets Acquired through Foreclosure or Repossession	3,967		5,992		5,820
Nonperforming Assets	60,082		65,231		69,703
Troubled Debt Restructurings (Nonaccrual)	18,184		22,124		32,779
Allowance for Loan Losses	48,841		51,533		51,387
Nonperforming Loans / Loans	1.79%		1.89%		1.90%
Nonperforming Assets / Loans plus OREO	1.92%		2.08%		2.07%
Allowance for Loan Losses / Loans	1.56%		1.64%		1.53%
Allowance for Loan Losses / Nonperforming Loans	87%		87%		80%
Net Loan Charge-offs (Recoveries)	5,028		8,006		12,570
Net Loan Charge-offs (Recoveries) (Annualized) / Average Loans	0.64%		1.00%		1.48%
Profitability Ratios (Annualized)
Common Return on Average Assets	0.91%		1.20%		0.84%
Common Return on Average Tangible Assets (2)	0.95%		1.25%		0.88%
Common Return on Average Equity	6.41%		8.12%		6.00%
Common Return on Average Tangible Common Equity (3)	11.29%		15.20%		11.59%
Efficiency Ratio (FTE) (4)	57.06%		53.41%		54.69%
Capitalization Ratios
Dividends Paid to Net Income	45.25%		34.40%		47.82%
Common Equity / Assets	11.91%		12.14%		11.48%
Tier 1 Leverage Ratio	9.17%		11.80%		11.07%
Risk-Based Capital - Tier 1	11.63%		14.95%		13.28%
Risk-Based Capital - Total	15.20%		18.51%		16.68%
Tangible Common Equity / Tangible Assets (5)	8.09%		8.30%		7.61%
		For the Twelve Months Ended December 31,
			2011		2010
Asset Quality Data
Net Loan Charge-offs (Recoveries)			18,155		37,704
Net Loan Charge-offs (Recoveries) / Average Loans			0.56%		1.11%
Profitability Ratios (Annualized)
Common Return on Average Assets			0.97%		0.90%
Common Return on Average Tangible Common Assets (6)			1.02%		0.94%
Common Return on Average Shareholders' Equity			6.78%		6.58%
Common Return on Average Tangible Common Equity (7)			12.62%		12.98%
Efficiency Ratio (FTE) (4)			55.96%		53.51%
Capitalization Ratios
Dividends Paid to Net Income			42.44%		44.75%

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
	2011		2011		2010
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter
Definitions and Reconciliation of GAAP to
Non-GAAP Financial Measures:
(1) Tangible Common Book Value
Common Book Value (GAAP Basis)	$17.44		$17.68		$16.91
Effect of Excluding Intangible Assets	(6.08)		(6.10)		(6.18)
Tangible Common Book Value	$11.36		$11.58		$10.73
(2) Common Return on Average Tangible Assets
Common Return on Average Assets (GAAP Basis)	0.91%		1.20%		0.84%
Effect of Excluding Intangible Assets	0.04%		0.05%		0.04%
Common Return on Average Tangible Assets	0.95%		1.25%		0.88%
(3) Common Return on Average Tangible Common Equity
Common Return on Average Common Equity (GAAP Basis)	6.41%		8.12%		6.00%
Effect of Excluding Intangible Assets	2.17%		3.80%		3.03%
Effect of Excluding Preferred Stock	2.71%		3.28%		2.56%
Common Return on Average Tangible Common Equity	11.29%		15.20%		11.59%
(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)	11.91%		12.14%		11.48%
Effect of Excluding Intangible Assets	-3.82%		-3.84%		-3.87%
Tangible Common Equity / Tangible Assets	8.09%		8.30%		7.61%
		For the Twelve Months Ended December 31,
			2011		2010
(6) Common Return on Average Tangible Common Assets
Common Return on Average Assets (GAAP Basis)			0.97%		0.90%
Effect of Excluding Intangible Assets			0.05%		0.04%
Common Return on Average Tangible Common Assets			1.02%		0.94%
(7) Common Return on Average Tangible Common Equity
Common Return on Average Shareholders' Equity (GAAP Basis)			6.78%		6.58%
Effect of Excluding Intangible Assets			3.03%		3.49%
Effect of Excluding Preferred Stock			2.81%		2.91%
Common Return on Average Tangible Common Equity			12.62%		12.98%

SOURCE S&T Bancorp, Inc.

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