S&T BANCORP INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - S&T BANCORP INC	d70505d8k.htm

Exhibit 99.1


CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
800 Philadelphia Street
Indiana, PA 15701 mark.kochvar@stbank.net www.stbancorp.com

FOR IMMEDIATE RELEASE

S&T Bancorp, Inc. Announces Second Quarter 2015 Results and Declares Quarterly Dividend

Indiana, Pa. - July 21, 2015 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with branch locations in 16 southwestern and southcentral Pennsylvania counties, and loan production offices in northeast and central Ohio, and western New York, announced today its second quarter 2015 earnings. Second quarter earnings were $18.2 million, or $0.52 per diluted share, compared to first quarter of 2015 earnings of $12.8 million, or $0.41 per diluted share, and second quarter of 2014 earnings of $14.7 million, or $0.49 per diluted share.

Highlights:

•

Return on average assets was 1.21% and return on average equity was 9.52% for the second quarter of 2015.

•

Portfolio loans increased $115 million from March 31, 2015, representing a 9.8% annualized rate.

•

Results for the second quarter included merger integration costs of $0.9 million, which primarily related to the systems conversion.

•

Net loan charge-offs to average loans remained low at 0.11% for the second quarter of 2015 compared to 0.10% for the first quarter of 2015.

•

S&T declared an $0.18 per share dividend compared to $0.17 in the same period a year ago.

“The growth initiatives that we have implemented over the past two years through our expansion into central Pennsylvania, Ohio, and western New York and our efforts in our core markets are making a big impact on our overall financial performance,” said Todd Brice, president and chief executive officer of S&T. “Our team members are successfully expanding opportunities with existing clients and developing new relationships. We are excited about how we are positioned moving forward.”

Net Interest Income

Net interest income increased $8.6 million to $48.8 million compared to $40.2 million for the first quarter of 2015. The increase in net interest income was primarily due to the merger with Integrity Bancshares (the Merger) that occurred on March 4, 2015. Average loans increased by $642.2 million for the second quarter compared to the first quarter of 2015 due to the Merger and organic loan growth. Net interest income and net interest margin (NIM) on a fully taxable equivalent basis (FTE) were favorably impacted by $2.7

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million of accretion from purchase accounting adjustments during the quarter. NIM increased to 3.67% compared to 3.48% for the first quarter of 2015, primarily due to the accretion of the purchase accounting adjustments.

Asset Quality

Overall asset quality remains well controlled. Total nonperforming assets were relatively unchanged at $19.9 million, or 0.32% of total assets, at June 30, 2015 and $19.4 million, or 0.33% of total assets, at March 31, 2015. Net charge-offs for the second quarter of 2015 were $1.3 million compared to net charge-offs of $1.0 million in the first quarter of 2015. The provision for loan losses was $2.1 million for the second quarter of 2015 compared to $1.2 million for the first quarter of 2015. The allowance for loan losses for originated loans was $48.8 million, or 1.23% of total originated loans, compared to $48.1 million, or 1.27% of total originated loans, at March 31, 2015.

Noninterest Income and Expense

Noninterest income increased $1.3 million to $13.4 million compared to $12.1 million for the first quarter of 2015. The increase in noninterest income was primarily due to the Merger and higher loan related fees. Noninterest expense increased $1.8 million to $35.4 million compared to $33.6 million in the first quarter of 2015. The increase was mainly due to higher operating expenses resulting from the Merger offset by a decrease of $1.4 million of integration costs related to the Merger.

Financial Condition

Total assets increased $163 million to $6.1 billion at June 30, 2015 compared to $6.0 billion at March 31, 2015. Loan growth was strong for the quarter with an increase in total portfolio loans of $115 million, or a 9.8% annualized rate. Commercial loans increased $101 million during the quarter, or an 11.4% annualized rate, primarily due to growth in the commercial real estate and commercial and industrial portfolios. In the consumer portfolio, home equity loans increased by $19 million, or a 17% annualized rate. Total deposits increased $31 million to $4.9 billion at June 30, 2015. S&T’s risk based capital ratios decreased this quarter due to loan and commitment growth outpacing retained earnings. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared an $0.18 per share cash dividend at its regular meeting held on July 20, 2015. The dividend is payable on August 20, 2015 to shareholders of record on August 6, 2015.

Conference Call

S&T will host its second quarter 2015 earnings conference call live over the Internet at 1:00 p.m. ET on Tuesday, July 21, 2015. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “2nd Quarter 2015 Conference Call” and follow the instructions.

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About S&T Bancorp, Inc. and S&T Bank:

S&T Bancorp, Inc. is a $6.1 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in 16 counties across southwestern and southcentral Pennsylvania, with loan production offices in northeast and central Ohio, and western New York. For more information visit www.stbancorp.com or www.stbank.com.

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, and 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 selected 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.

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S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

S&T Earnings Release – 4


	2015			2015			2014
(dollars in thousands, except per share data)	Second Quarter			First Quarter			Second Quarter
INTEREST INCOME
Loans, including fees	$	48,933		$	39,927		$	36,614
Investment securities:
Taxable		2,394			2,383			2,060
Tax-exempt		998			1,020			979
Dividends		286			586			219

Total Interest Income		52,611			43,916			39,872


INTEREST EXPENSE
Deposits		3,051			3,007			2,476
Borrowings and junior subordinated debt securities		749			650			541

Total Interest Expense		3,800			3,657			3,017


NET INTEREST INCOME		48,811			40,259			36,855
Provision for loan losses		2,059			1,207			(1,134	)

Net Interest Income After Provision for Loan Losses		46,752			39,052			37,989


NONINTEREST INCOME
Securities (losses) gains, net		(34	)		—			40
Debit and credit card fees		3,020			2,715			2,724
Wealth management fees		2,930			2,923			2,837
Service charges on deposit accounts		2,877			2,583			2,574
Insurance fees		1,391			1,651			1,425
Mortgage banking		782			525			264
Other		2,417			1,687			1,907

Total Noninterest Income		13,383			12,084			11,771


NONINTEREST EXPENSE
Salaries and employee benefits		17,455			16,780			15,772
Net occupancy		2,682			2,588			1,984
Data processing		2,555			2,320			2,219
Furniture and equipment		1,582			1,226			1,277
Marketing		1,193			816			960
Other taxes		1,159			842			893
Merger related expenses		866			2,301			—
FDIC insurance		808			695			579
Professional services and legal		801			523			875
Other		6,348			5,530			5,606

Total Noninterest Expense		35,449			33,621			30,165


Income Before Taxes		24,686			17,515			19,595
Provision for income taxes		6,498			4,680			4,875

Net Income	$	18,188		$	12,835		$	14,720


Per Share Data:
Shares outstanding at end of period		34,812,723			34,797,526			29,797,204
Average shares outstanding - diluted		34,681,180			31,260,948			29,701,195
Average shares outstanding - two-class method		34,804,031			31,343,849			29,743,273
Diluted earnings per share⁽¹⁾	$	0.52		$	0.41		$	0.49
Dividends declared per share	$	0.18		$	0.18		$	0.17
Dividend yield (annualized)		2.43	%		2.54	%		2.74	%
Dividends paid to net income		34.37	%		41.74	%		34.32	%
Book value	$	22.15		$	21.91		$	20.04
Tangible book value⁽³⁾	$	13.65		$	13.40		$	14.07
Market value	$	29.59		$	28.38		$	24.85

Profitability Ratios (annualized)
Return on average assets		1.21	%		0.99	%		1.26	%
Return on average tangible assets⁽⁴⁾		1.29	%		1.05	%		1.33	%
Return on average shareholders’ equity		9.52	%		7.85	%		9.99	%
Return on average tangible shareholders’ equity⁽⁵⁾		15.79	%		11.80	%		14.48	%
Efficiency ratio (FTE)⁽²⁾		55.63	%		62.57	%		60.36	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

S&T Earnings Release – 5


	For the Six Months Ended June 30,
(dollars in thousands, except per share data)	2015			2014
INTEREST INCOME
Loans, including fees	$	88,859		$	72,263
Investment securities:
Taxable		4,777			3,960
Tax-exempt		2,018			1,908
Dividends		872			406

Total Interest Income		96,526			78,537


INTEREST EXPENSE
Deposits		6,058			4,986
Borrowings and junior subordinated debt securities		1,398			1,105

Total Interest Expense		7,456			6,091


NET INTEREST INCOME		89,070			72,446
Provision for loan losses		3,266			(845	)

Net Interest Income After Provision for Loan Losses		85,804			73,291


NONINTEREST INCOME
Securities (losses) gains, net		(34	)		41
Wealth management fees		5,853			5,792
Debit and credit card fees		5,736			5,226
Service charges on deposit accounts		5,459			5,083
Insurance fees		3,041			3,102
Mortgage banking		1,308			396
Other		4,104			3,547

Total Noninterest Income		25,467			23,187


NONINTEREST EXPENSE
Salaries and employee benefits		34,235			31,148
Net occupancy		5,270			4,214
Data processing		4,876			4,314
Furniture and equipment		2,808			2,548
Professional services and legal		1,324			1,538
Other taxes		2,002			1,524
Marketing		2,009			1,578
FDIC insurance		1,503			1,210
Merger related expenses		3,167			—
Other		11,876			11,005

Total Noninterest Expense		69,070			59,079

Income Before Taxes		42,201			37,399
Provision for income taxes		11,178			8,646

Net Income	$	31,023		$	28,753


Per Share Data:
Average shares outstanding - diluted		32,988,295			29,700,170
Average shares outstanding - two-class method		33,083,499			29,739,174
Diluted earnings per share⁽¹⁾	$	0.94		$	0.97
Dividends declared per share	$	0.36		$	0.33
Dividends paid to net income		37.42	%		34.12	%
Profitability Ratios (annualized)
Return on average assets		1.11	%		1.25	%
Return on average tangible assets⁽⁸⁾		1.18	%		1.31	%
Return on average shareholders’ equity		8.75	%		9.91	%
Return on average tangible shareholders’ equity⁽⁹⁾		13.85	%		14.45	%
Efficiency ratio (FTE)⁽²⁾		58.80	%		60.10	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

S&T Earnings Release – 6


	2015			2015			2014
(dollars in thousands)	Second Quarter			First Quarter			Second Quarter
ASSETS
Cash and due from banks, including interest-bearing deposits	$	146,582		$	124,737		$	130,235
Securities available-for-sale, at fair value		666,624			655,829			588,488
Loans held for sale		13,634			6,126			3,102
Commercial loans:
Commercial real estate		2,054,935			2,006,131			1,636,383
Commercial and industrial		1,239,382			1,199,115			922,191
Commercial construction		344,983			333,177			188,311

Total Commercial Loans		3,639,300			3,538,423			2,746,885
Consumer loans:
Residential mortgage		599,502			603,536			492,589
Home equity		457,813			439,282			416,226
Installment and other consumer		94,437			97,284			65,838
Consumer construction		7,446			5,173			3,541

Total Consumer Loans		1,159,198			1,145,275			978,194

Total portfolio loans		4,798,498			4,683,698			3,725,079
Allowance for loan losses		(48,814	)		(48,106	)		(46,580	)

Total portfolio loans, net		4,749,684			4,635,592			3,678,499
Goodwill		291,204			290,617			175,820
Other assets		266,000			258,392			211,886

Total Assets	$	6,133,728		$	5,971,293		$	4,788,030


LIABILITIES
Deposits:
Noninterest-bearing demand	$	1,182,124		$	1,177,623		$	1,089,999
Interest-bearing demand		703,797			686,546			307,897
Money market		633,175			617,609			301,719
Savings		1,093,057			1,073,755			1,024,050
Certificates of deposit		1,247,262			1,272,998			1,141,581

Total Deposits		4,859,415			4,828,531			3,865,246

Securities sold under repurchase agreements		46,235			46,721			25,269
Short-term borrowings		230,975			199,573			185,000
Long-term borrowings		118,228			18,838			20,636
Junior subordinated debt securities		45,619			50,619			45,619
Other liabilities		62,027			64,753			49,073

Total Liabilities		5,362,499			5,209,035			4,190,843

SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity		771,229			762,258			597,187

Total Liabilities and Shareholders’ Equity	$	6,133,728		$	5,971,293		$	4,788,030


Capitalization Ratios
Shareholders’ equity / assets		12.57	%		12.77	%		12.47	%
Tangible common equity / tangible assets⁽⁶⁾		8.14	%		8.22	%		9.10	%
Tier 1 leverage ratio		8.92	%		10.06	%		9.91	%
Common equity tier 1 capital		9.59	%		9.82	%		11.75	%
Risk-based capital - tier 1		9.97	%		10.22	%		12.30	%
Risk-based capital - total		11.48	%		11.86	%		14.26	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

S&T Earnings Release – 7


	2015				2015				2014
(dollars in thousands)	Second				First				Second
Net Interest Margin (FTE) (QTD Averages)	Quarter				Quarter				Quarter
ASSETS
Loans	$	4,764,852	4.20	%	$	4,122,631	4.01	%	$	3,650,050	4.11	%
Taxable investment securities		513,639	1.94	%		504,867	1.97	%		427,976	1.99	%
Tax-exempt investment securities		136,824	4.49	%		142,194	4.41	%		129,687	4.65	%
Federal Home Loan Bank and other restricted stock		22,166	3.42	%		15,427	12.66	%		12,752	3.89	%
Interest-bearing deposits with banks		65,246	0.25	%		65,575	0.22	%		88,706	0.28	%

Total Interest-earning Assets		5,502,727	3.94	%		4,850,694	3.78	%		4,309,171	3.84	%

Noninterest-earning assets		537,348				421,132				372,445

Total Assets	$	6,040,075			$	5,271,826			$	4,681,616

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing demand	$	660,058	0.15	%	$	432,009	0.08	%	$	311,719	0.03	%
Money market		427,354	0.19	%		362,939	0.18	%		327,666	0.15	%
Savings		1,073,360	0.16	%		1,052,347	0.16	%		1,035,691	0.16	%
Certificates of deposit		1,120,256	0.68	%		991,542	0.87	%		899,086	0.78	%
CDARS and brokered deposits		347,013	0.32	%		260,555	0.34	%		230,036	0.32	%
Securities sold under repurchase agreements		45,017	0.01	%		40,039	0.01	%		30,718	0.01	%
Short-term borrowings		228,505	0.33	%		236,440	0.32	%		108,640	0.30	%
Long-term borrowings		78,912	0.98	%		19,086	3.01	%		20,873	3.01	%
Junior subordinated debt securities		49,905	2.93	%		47,175	2.77	%		45,619	2.66	%

Total Interest-bearing Liabilities		4,030,380	0.38	%		3,442,132	0.43	%		3,010,048	0.40	%

Noninterest-bearing demand		1,175,620				1,101,795				1,028,997
Other liabilities		67,500				64,643				51,390
Shareholders’ equity		766,575				663,256				591,181

Total Liabilities and Shareholders’ Equity	$	6,040,075			$	5,271,826			$	4,681,616

Net Interest Margin ⁽⁷⁾			3.67	%			3.48	%			3.56	%


	For the Six Months Ended June 30,
(dollars in thousands)	2015				2014
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Loans	$	4,445,515	4.11	%	$	3,613,470	4.12	%
Taxable investment securities		509,271	1.95	%		411,535	1.98	%
Tax-exempt investment securities		139,501	4.45	%		125,591	4.68	%
Federal Home Loan Bank and other restricted stock		18,815	7.20	%		13,070	3.28	%
Interest-bearing deposits with banks		65,410	0.23	%		118,419	0.25	%

Total Interest-earning Assets		5,178,512	3.87	%		4,282,085	3.82	%

Noninterest-earning assets		479,561				374,940

Total Assets	$	5,658,073			$	4,657,025

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing demand	$	546,663	0.12	%	$	312,565	0.02	%
Money market		395,324	0.19	%		338,928	0.15	%
Savings		1,062,911	0.16	%		1,025,007	0.16	%
Certificates of deposit		1,056,254	0.77	%		904,869	0.79	%
CDARS and brokered deposits		304,023	0.33	%		210,426	0.33	%
Securities sold under repurchase agreements		42,542	0.01	%		33,641	0.01	%
Short-term borrowings		232,451	0.33	%		118,156	0.30	%
Long-term borrowings		49,165	1.37	%		21,168	3.04	%
Junior subordinated debt securities		48,547	2.85	%		45,619	2.68	%

Total Interest-bearing Liabilities		3,737,880	0.40	%		3,010,379	0.41	%

Noninterest-bearing demand		1,138,912				1,009,506
Other liabilities		66,080				52,116
Shareholders’ equity		715,201				585,024

Total Liabilities and Shareholders’ Equity	$	5,658,073			$	4,657,025

Net Interest Margin ⁽¹⁰⁾			3.58	%			3.54	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

S&T Earnings Release – 8


	2015						2015						2014
	Second						First						Second
(dollars in thousands)	Quarter						Quarter						Quarter
Nonperforming Loans (NPL)
				% NPL						% NPL						% NPL
Commercial loans:
Commercial real estate	$	7,309			0.36	%	$	8,386			0.42	%	$	5,658			0.35	%
Commercial and industrial		3,143			0.25	%		3,550			0.30	%		3,837			0.42	%
Commercial construction		4,472			1.30	%		1,973			0.59	%		1,870			0.99	%

Total Nonperforming Commercial Loans		14,924			0.41	%		13,909			0.39	%		11,365			0.41	%
Consumer loans:
Residential mortgage		2,010			0.34	%		2,226			0.37	%		2,118			0.43	%
Home equity		2,026			0.44	%		1,986			0.45	%		1,431			0.34	%
Installment and other consumer		179			0.19	%		13			0.01	%		26			0.04	%
Consumer construction		—			—			—			—			—			—

Total Nonperforming Consumer Loans		4,215			0.36	%		4,225			0.37	%		3,575			0.37	%

Total Nonperforming Loans	$	19,139			0.40	%	$	18,134			0.39	%	$	14,940			0.40	%


	2015						2015						2014
	Second						First						Second
	Quarter						Quarter						Quarter
Asset Quality Data
Nonperforming loans	$	19,139					$	18,134					$	14,940
Assets acquired through foreclosure or repossession		750						1,294						431
Nonperforming assets		19,889						19,428						15,371
Troubled debt restructurings (nonaccruing)		8,927						9,916						5,241
Troubled debt restructurings (accruing)		32,560						36,423						37,120
Total troubled debt restructurings		41,487						46,339						42,361
Nonperforming loans / loans		0.40	%					0.39	%					0.40	%
Nonperforming assets / loans plus OREO		0.41	%					0.41	%					0.41	%
Allowance for loan losses / originated loans		1.23	%					1.27	%					1.29	%
Allowance for loan losses / total loans		1.02	%					1.03	%					1.25	%
Allowance for loan losses / nonperforming loans		255	%					265	%					312	%
Net loan charge-offs (recoveries)	$	1,349					$	1,014					$	(1,099	)
Net loan charge-offs (recoveries)(annualized) / average loans		0.11	%					0.10	%					(0.12	%)

							For the Six Months Ended June 30,
(dollars in thousands)							2015						2014
Asset Quality Data
Net loan charge-offs (recoveries)							$	2,363					$	(1,171	)
Net loan charge-offs (recoveries)(annualized) / average loans								0.11	%					(0.07	%)

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

S&T Earnings Release – 9

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

⁽¹⁾	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.

⁽²⁾	Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis.


	2015			2015			2014
	Second			First			Second
	Quarter			Quarter			Quarter

⁽³⁾ Tangible Book Value (non-GAAP)
Total shareholders’ equity	$	771,229		$	762,258		$	597,187
Less: goodwill and other intangible assets, net of deferred tax liability		(296,065	)		(295,814	)		(177,866	)

Tangible common equity (non-GAAP)	$	475,164		$	466,444		$	419,321
Common shares outstanding		34,813			34,798			29,797
Tangible book value (non-GAAP)	$	13.65		$	13.40		$	14.07

⁽⁴⁾ Return on Average Tangible Assets (non-GAAP)
Net income (annualized)	$	72,952		$	52,054		$	59,042
Plus: amortization of intangibles net of tax (annualized)		1,347			917			775

Net income before amortization of intangibles (annualized)		74,299			52,971			59,817

Average total assets		6,040,075			5,271,826			4,681,616
Less: average goodwill and other intangibles, net of deferred tax liability		(295,886	)		(214,299	)		(177,963	)


Average tangible assets (non-GAAP)	$	5,744,189		$	5,057,527		$	4,503,653
Return on average tangible assets (non-GAAP)		1.29	%		1.05	%		1.33	%

⁽⁵⁾ Return on Average Tangible Shareholders’ Equity (non-GAAP)
Net income (annualized)	$	72,952		$	52,054		$	59,042
Plus: amortization of intangibles net of tax (annualized)		1,347			917			775

Net income before amortization of intangibles (annualized)		74,299			52,971			59,817

Average total shareholders’ equity		766,575			663,256			591,181
Less: average goodwill and other intangibles, net of deferred tax liability		(295,886	)		(214,299	)		(177,963	)

Average tangible equity (non-GAAP)	$	470,689		$	448,957		$	413,218
Return on average tangible equity (non-GAAP)		15.79	%		11.80	%		14.48	%

⁽⁶⁾ Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders’ equity	$	771,229		$	762,258		$	597,187
Less: goodwill and other intangible assets, net of deferred tax liability		(296,065	)		(295,814	)		(177,866	)

Tangible common equity (non-GAAP)		475,164			466,444			419,321

Total assets		6,133,728			5,971,293			4,788,030
Less: goodwill and other intangible assets, net of deferred tax liability		(296,065	)		(295,814	)		(177,866	)

Tangible assets (non-GAAP)	$	5,837,663		$	5,675,479		$	4,610,164
Tangible common equity to tangible assets (non-GAAP)		8.14	%		8.22	%		9.10	%

⁽⁷⁾ Net Interest Margin Rate (FTE) (non-GAAP)
Interest income	$	52,611		$	43,916		$	39,872
Less: interest expense		(3,800	)		(3,657	)		(3,017	)

Net interest income per consolidated statements of net income		48,811			40,259			36,855
Plus: taxable equivalent adjustment		1,494			1,392			1,393

Net interest income (FTE) (non-GAAP)		50,305			41,651			38,248
Net interest income (FTE) (annualized)		201,773			168,918			153,412
Average earning assets	$	5,502,727		$	4,850,694		$	4,309,171
Net interest margin - (FTE) (non-GAAP)		3.67	%		3.48	%		3.56	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

S&T Earnings Release – 10

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


	For the Six Months Ended June 30,
	2015			2014

⁽⁸⁾ Return on Average Tangible Assets (non-GAAP)
Net income (annualized)	$	62,560		$	57,983
Plus: amortization of intangibles net of tax (annualized)		1,133			804

Net income before amortization of intangibles (annualized)		63,693			58,787

Average total assets		5,658,073			4,657,025
Less: average goodwill and other intangibles, net of deferred tax liability		(255,318	)		(178,063	)

Average tangible assets (non-GAAP)	$	5,402,755		$	4,478,962
Return on average tangible assets (non-GAAP)		1.18	%		1.31	%

⁽⁹⁾ Return on Average Tangible Shareholders’ Equity (non-GAAP)
Net income (annualized)	$	62,560		$	57,983
Plus: amortization of intangibles net of tax (annualized)		1,133			804

Net income before amortization of intangibles (annualized)		63,693			58,787
Average total shareholders’ equity		715,201			585,024
Less: average goodwill and other intangibles, net of deferred tax liability		(255,318	)		(178,063	)

Average tangible equity (non-GAAP)	$	459,883		$	406,961
Return on average tangible equity (non-GAAP)		13.85	%		14.45	%

⁽¹⁰⁾ Net Interest Margin Rate (FTE) (non-GAAP)
Interest income	$	96,526		$	78,537
Less: interest expense		(7,456	)		(6,091	)

Net interest income per consolidated statements of net income		89,070			72,446
Plus: taxable equivalent adjustment		2,886			2,717

Net interest income (FTE) (non-GAAP)		91,956			75,163
Net interest income (FTE) (annualized)		185,435			151,572
Average earning assets	$	5,178,512		$	4,282,085
Net interest margin - (FTE) (non-GAAP)		3.58	%		3.54	%

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