S&T Bancorp, Inc. Announces Results

INDIANA, Pa., Oct. 19 /PRNewswire-FirstCall/ -- S&T Bancorp, Inc. (Nasdaq: STBA) today announced net income of $7.7 million or $0.28 diluted earnings per share for the quarter ended September 30, 2009 compared to net income of $15.7 million or $0.57 diluted earnings per share for the quarter ended September 30, 2008. The decrease in net income and earnings per share for the third quarter 2009 is primarily due to higher provision for loan losses, increased Federal Deposit Insurance Corporation (FDIC) premiums and other-than-temporary impairments for equity investments. For the nine months ending September 30, 2009, the net loss was $5.6 million or ($0.20) diluted earnings per share.

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Todd D. Brice, president and chief executive officer, commented, "We continue to make significant progress working through the difficult economic environment and resulting credit cycle. Aggressively addressing the credit stress in our commercial loan portfolio, the building of the allowance for loan losses and maintaining a strong capital position will allow us to successfully work through this challenging period."

During the third quarter of 2009, net charged-off loans were $5.4 million. The most significant charged-off loans were:

• $2.9 million on two Florida lot development projects. The outstanding balance of this relationship totals $16.4 million, including the residual balance of the Florida exposure of $3.7 million on five Florida lot development projects. The Florida exposure is in nonperforming loan status and has been charged down to current market valuations based on updated real estate appraisals. The balance of the relationship is associated with lot development activity in western Pennsylvania and is currently performing.
• $0.6 million for a multi-family development project in western Pennsylvania. This charge is associated with the transfer of $2.7 million to other real estate owned following a foreclosure.
• $0.6 million for a retail sales company that discontinued operations due to cash flow problems. There are no residual balances for this relationship.
  

The provision for loan losses was $8.4 million, $32.2 million and $21.4 million for the quarters ending September 30, 2009, June 30, 2009 and March 31, 2009, respectively. The allowance for loan losses to total loans for the same periods was 1.77 percent, 1.67 percent and 1.70 percent, respectively. Included in the $60.9 million allowance for loan losses is $17.9 million of specific reserves for nonperforming and other troubled loans as of September 30, 2009. In addition, the reserve for unfunded commitments, classified separately from the allowance for loan losses in other liabilities, was $3.9 million at September 30, 2009. Also during the first nine months of 2009, net charge-offs were $43.8 million or 1.67 percent of average loans on an annualized basis. For the same nine-month period of 2008, net charge-offs were $3.8 million or 0.16 percent of average loans on an annualized basis.

Nonperforming loans totaled $86.5 million at September 30, 2009 compared to $71.4 million and $92.0 million as of June 30, 2009 and March 31, 2009, respectively. The nonperforming loans to total loans for the same periods were 2.51 percent, 2.06 percent and 2.62 percent, respectively. The most significant components of nonperforming loans at September 30, 2009 included:

• $16.9 million for three commercial real estate projects in the New York and Connecticut regions. Projects include undeveloped land, mixed-use commercial properties and a new condominium project. Specific reserves of $6.2 million have been established for these projects.
• An $11.5 million mixed-use, redevelopment loan located in western Pennsylvania placed into nonperforming status during the third quarter of 2009. Collateral includes real estate, a United States Department of Agriculture guaranty, a letter of credit from another financial institution and personal guarantees of the developer. A $1.5 million specific reserve has been established for this relationship pending receipt of updated appraisals. In addition, a $0.6 million charge was incurred in the third quarter 2009 in noninterest income for additional credit exposure on a swap asset from the same borrower.
• A $7.5 million commercial real estate relationship consisting of multiple retail projects in Pennsylvania. A $0.6 million specific reserve has been established.
• $3.3 million of residual values on remaining collateral for Florida lot development. Collateral values are believed to approximate current market values.
  

Brice commented, "Troubled commercial credits continue to be a challenge in this economy, but our philosophy is to deal with them quickly, conservatively and transparently. While we have been dealing with stresses in our commercial loan portfolio, we are fortunate that our residential mortgage and home equity portfolios continue to perform relatively well as a result of traditionally conservative underwriting and the avoidance of any subprime loan products."

Net interest income on a fully taxable equivalent basis decreased by $2.4 million, or 6 percent, to $38.1 million for the third quarter of 2009, as compared to the same period of 2008. The decline in net interest income for the third quarter 2009, as compared to the same period of 2008, was the result of lower earning asset levels, reduced net interest margin and higher delinquent interest. For the nine months ending September 30, 2009 and 2008, respectively, net interest income on a fully taxable equivalent basis increased $6.3 million or 6 percent. Net interest income for the nine months of 2009, as compared to the same period of 2008, benefited from the IBT acquisition in the second quarter of 2008, and was negatively impacted by higher delinquent interest and lower net interest margin. The net interest margin on a fully taxable equivalent basis was 3.94 percent, 3.86 percent and 4.07 percent for the quarters ending September 30, 2009, June 30, 2009 and September 30, 2008, respectively.

Earning assets have decreased $208.6 million over the past nine months, primarily due to decreased commercial loan demand and balance sheet deleveraging activities that allow maturing investment securities to reduce borrowings. Residential mortgage and home equity loan applications have achieved record levels during the first nine months of 2009 as consumers took advantage of lower interest rates. $120.7 million of residential mortgage loans and $104.5 million of home equity loans were originated during the year-to-date period ending September 30, 2009. Most of the new residential mortgage loans are sold to FNMA in order to minimize the interest rate risk associated with long-term mortgages.

Deposits increased $51.4 million during the nine-month period primarily due to a $73.6 million increase in demand deposits. Brice added, "The increase in demand deposits is especially encouraging since this has been an area of strategic focus for us in order to deepen our relationship banking philosophy with both commercial and retail customers."

Noninterest income, excluding investment security losses, decreased $0.3 million, or 3 percent, for the third quarter of 2009 as compared to the third quarter of 2008. Third quarter 2009 noninterest income was adversely affected by the aforementioned $0.6 million charge for a troubled commercial loan interest rate swap. For the nine-month period ending September 30, 2009, as compared to the same period in 2008, noninterest income, excluding investment security losses, increased $3.0 million, or 10 percent. The nine-month increases are primarily due to record performances in mortgage banking activities, strong debit/credit card revenues and higher deposit fees. Positively affecting debit/credit card revenues and deposit fees was the increased customer base resulting from the IBT merger in the second quarter 2008, as well as organic expansion of demand deposit accounts.

Net investment security losses for the third quarter of 2009 were $2.1 million. The investment security losses for the third quarter of 2009 are primarily due to an other-than-temporary impairment charge for seven equity holdings. The equity securities portfolio has a market value of $12.9 million and net unrealized losses of $0.2 million as of September 30, 2009, as compared to $12.5 million and $2.7 million, respectively, at June 30, 2009.

Noninterest expense increased $2.5 million, or 11 percent, for the third quarter of 2009, as compared to the third quarter 2008 period. For the nine-month period ending September 30, 2009, as compared to the same period in 2008, noninterest expense increased $20.4 million, or 32 percent. Significant factors contributing to these increases are higher staff levels, infrastructure costs and core deposit intangible amortization related to the IBT merger, FDIC insurance premiums and surcharges, pension expense, reserve for unfunded loan commitments, other-than-temporary impairment charges for affordable housing partnerships and legal and consulting costs for troubled loans.

On January 16, 2009, S&T received $108.7 million of funds from the U.S. Treasury's Capital Purchase Program through the issuance of preferred stock and warrants for common stock. The purpose of the government program was to promote lending by healthy banks to individuals and businesses in order to stimulate the economy. Dividends and amortization associated with this preferred stock were $4.4 million for the nine-month period ending September 30, 2009. Brice commented, "Participation in the Capital Purchase Program was a difficult decision for S&T since we were already designated as "well capitalized" by regulatory guidelines. While the additional capital is comforting during these times, our intention is to obtain regulatory approval for returning these funds in the most shareholder-friendly manner possible once a positive direction in the economy becomes more clear." S&T's capital ratios for leverage, Total, Tier I and tangible common capital to tangible assets at September 30, 2009 were 9.92 percent, 14.86 percent, 11.57 percent and 6.48 percent, respectively.

S&T Bancorp, Inc. declared a common stock quarterly dividend of $0.15 per share on September 21, 2009 which is payable on October 23, 2009 to shareholders of record as of September 30, 2009. This dividend represents a 5 percent projected annual yield utilizing the September 30, 2009 closing market price of $12.96. Also on September 21, 2009, the S&T Bancorp, Inc. Board of Directors approved a change in timing of the declaration and payment of dividends to provide better alignment with quarterly earnings announcements effective for the fourth quarter 2009. This change will result in dividend declaration and payment dates that will be approximately 30 days later than our historical pattern, with the fourth quarter 2009 dividend announced and declared in January 2010, and payment made in February 2010.

Headquartered in Indiana, PA, S&T Bancorp, Inc. operates 55 offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jefferson and Westmoreland counties. With assets of $4.2 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 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 tax-equivalent basis and operating revenue. 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 are 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
    September 30, 2009
    (Dollars in thousands, except per share data)

                                                    2008
                                                    ----
                                   March       June      September    December
    For the period:                 1Q          2Q          3Q           4Q
                                    --          --          --           --

    Interest Income              $50,458     $50,433     $57,416      $57,811
    Interest Expense              19,909      16,791      18,245       17,226
                                  ------      ------      ------       ------
      Net Interest Income         30,549      33,642      39,171       40,585
      Taxable Equivalent
       Adjustment                  1,148       1,227       1,385        1,388
                                   -----       -----       -----        -----
      Net Interest
       Income (FTE)               31,697      34,869      40,556       41,973

    Provision For Loan Losses      1,279        (118)      6,156        5,561
                                   -----        ----       -----        -----
      Net Interest Income
       After Provisions (FTE)     30,418      34,987      34,400       36,412
                                  ------      ------      ------       ------

    Security Gains
     and Losses, Net                 611      (1,829)       (341)         (92)

    Service Charges
     and Fees                      2,402       2,754       3,599        3,567
    Wealth Management              1,862       1,907       2,118        2,081
    Insurance                      1,997       2,042       2,073        1,984
    Other                          2,638       3,100       2,811        2,168
                                   -----       -----       -----        -----

      Total Noninterest
       Income                      8,899       9,803      10,601        9,800

    Salaries and Employee
     Benefits                     10,060      10,514      11,725       10,409
    Occupancy and Equip.
     Expense, Net                  2,660       2,636       2,761        2,838
    Data Processing Expense        1,071       1,668       1,365        1,384
    FDIC Expense                      75          74         131          129
    Other                          4,089       7,492       6,358        6,363
                                   -----       -----       -----        -----

      Total Noninterest
       Expense                    17,955      22,384      22,340       21,123
                                  ------      ------      ------       ------

    Income (Loss) Before Taxes    21,973      20,577      22,320       24,997
    Taxable Equivalent
     Adjustment                    1,148       1,227       1,385        1,388
    Applicable Income Taxes        5,969       5,489       5,249        7,809
                                   -----       -----       -----        -----

      Net Income (Loss)           14,856      13,861      15,686       15,800
    Preferred Stock Dividends          -           -           -            -
                                       -           -           -            -
    Net Income (Loss)
     Available to Common
     Shareholders                $14,856     $13,861     $15,686      $15,800
                                 =======     =======     =======      =======

    Per Common Share Data:

    Shares Outstanding at
     End of Period            24,615,136  27,408,633  27,588,510   27,632,928
    Average Shares
     Outstanding - Diluted    24,680,484  25,503,920  27,602,216   27,722,550
    Net Income
     (Loss) - Diluted              $0.60       $0.54       $0.57        $0.57
    Dividends Declared             $0.31       $0.31       $0.31        $0.31
    Common Book Value             $14.18      $16.00      $16.34       $16.24
    Tangible Common
     Book Value (5)               $12.04       $9.52       $9.97        $9.90
    Market Value                  $32.17      $29.06      $36.83       $35.50


                                               2009
                                               ----
                                   March       June      September
    For the period:                 1Q          2Q          3Q
                                    --          --          --

    Interest Income              $50,424     $49,226     $48,310
    Interest Expense              14,279      12,677      11,477
                                  ------      ------      ------
      Net Interest Income         36,145      36,549      36,833
      Taxable Equivalent
       Adjustment                  1,334       1,311       1,284
                                   -----       -----       -----
      Net Interest Income (FTE)   37,479      37,860      38,117

    Provision For Loan Losses     21,389      32,184       8,382
                                  ------      ------       -----
      Net Interest Income
       After Provisions (FTE)     16,090       5,676      29,735
                                  ------       -----      ------

    Security Gains and
     Losses, Net                  (1,246)     (1,296)     (2,059)

    Service Charges and Fees       3,056       3,232       3,305
    Wealth Management              1,743       1,912       1,920
    Insurance                      1,862       1,985       2,020
    Other                          3,601       4,624       3,038
                                   -----       -----       -----

      Total Noninterest Income    10,262      11,753      10,283

    Salaries and Employee
     Benefits                     11,655      12,698      12,284
    Occupancy and Equip.
     Expense, Net                  3,082       3,023       2,882
    Data Processing Expense        1,468       1,542       1,565
    FDIC Expense                   1,941       3,447       1,526
    Other                          7,292      12,052       6,582
                                   -----      ------       -----

      Total Noninterest Expense   25,438      32,762      24,839
                                  ------      ------      ------

    Income (Loss) Before Taxes      (332)    (16,629)     13,120
    Taxable Equivalent
     Adjustment                    1,334       1,311       1,284
    Applicable Income Taxes          176      (9,284)      2,578
                                     ---      ------       -----

      Net Income (Loss)           (1,842)     (8,656)      9,258
    Preferred Stock Dividends      1,283       1,541       1,543
                                   -----       -----       -----
    Net Income (Loss) Available
     to Common Shareholders      ($3,125)   ($10,197)     $7,715
                                 =======    ========      ======

    Per Common Share Data:

    Shares Outstanding at
     End of Period            27,637,317  27,654,530  27,684,807
    Average Shares
     Outstanding - Diluted    27,637,292  27,650,937  27,716,134
    Net Income (Loss) -
     Diluted                      ($0.11)     ($0.37)      $0.28
    Dividends Declared             $0.31       $0.15       $0.15
    Common Book Value             $16.01      $15.48      $15.77
    Tangible Common Book
     Value (5)                     $9.68       $9.17       $9.44
    Market Value                  $21.21      $12.16      $12.96


                                 Nine Months Ended
                                 -----------------
                                September   September
    For the period:                 2009        2008
                                    ----        ----

    Interest Income             $147,961    $158,307
    Interest Expense              38,434      54,945
                                  ------      ------
      Net Interest Income        109,527     103,362
      Taxable Equivalent
       Adjustment                  3,929       3,760
                                   -----       -----
      Net Interest Income (FTE)  113,456     107,122

    Provision For Loan Losses     61,954       7,317
                                  ------       -----
      Net Interest Income
       After Provisions (FTE)     51,502      99,805
                                  ------      ------

    Security Gains and
     Losses, Net                  (4,601)     (1,559)

    Service Charges and Fees       9,593       8,755
    Wealth Management              5,575       5,887
    Insurance                      5,867       6,112
    Other                         11,263       8,549
                                  ------       -----

      Total Noninterest Income    32,298      29,303

    Salaries and Employee
     Benefits                     36,637      32,298
    Occupancy and Equip.
     Expense, Net                  8,987       8,057
    Data Processing Expense        4,575       4,104
    FDIC Expense                   6,914         280
    Other                         25,927      17,939
                                  ------      ------

      Total Noninterest Expense   83,040      62,678
                                  ------      ------

    Income (Loss) Before
     Taxes                        (3,841)     64,871
    Taxable Equivalent
     Adjustment                    3,929       3,760
    Applicable Income Taxes       (6,530)     16,708
                                  ------      ------

      Net Income (Loss)           (1,240)     44,403
    Preferred Stock Dividends      4,368           -
                                   -----           -
    Net Income (Loss)
     Available
     to Common Shareholders      ($5,608)    $44,403
                                 =======     =======

    Per Common Share Data:

    Shares Outstanding at
     End of Period            27,684,807  27,588,510
    Average Shares
     Outstanding - Diluted    27,654,570  25,934,645
    Net Income (Loss) -
     Diluted                      ($0.20)      $1.71
    Dividends Declared             $0.61       $0.93
    Common Book Value             $15.77      $16.34
    Tangible Common Book
     Value (5)                     $9.44       $9.97
    Market Value                  $12.96      $36.83



    S&T Bancorp, Inc.
    Consolidated Selected Financial Data
    September 30, 2009
    (Dollars in thousands)

                                                   2008
                                                   ----
                                  March       June      September   December
    Asset Quality Data             1Q          2Q          3Q          4Q
    ------------------             --          --          --          --

    Nonaccrual Loans and
     Nonperforming Loans        $23,212     $15,959     $32,793     $42,466
    Assets Acquired
     through Foreclosure
     or Repossession                630       1,884       1,111         851
    Nonperforming Assets         23,842      17,843      33,904      43,317
    Allowance for
     Loan Losses                 35,717      38,796      43,235      42,689
    Nonperforming
     Loans / Loans                 0.81%       0.46%       0.92%       1.19%
    Allowance for Loan
     Losses / Loans                1.25%       1.12%       1.21%       1.20%
    Allowance for
     Loan Losses /
    Nonperforming Loans             154%        243%        132%        101%
    Net Loan Charge-offs
     (Recoveries)                   (94)      2,224       1,717       6,107
    Net Loan Charge-offs
     (Recoveries)
    (annualized)/
     Average Loans                -0.01%       0.29%       0.20%       0.68%

    Balance Sheet
     (Period-End)
    -------------

    Assets                   $3,463,806  $4,353,568  $4,461,085  $4,438,368
    Earning Assets            3,212,919   3,934,187   4,075,431   4,044,970
    Securities                  362,053     466,524     496,844     476,255
    Loans, Gross              2,850,866   3,467,663   3,578,587   3,568,716
    Total Deposits            2,605,187   3,114,560   3,131,882   3,228,416
      Non-Interest
       Bearing Deposits         471,040     593,339     600,246     600,282
      NOW, Money
       Market & Savings       1,203,833   1,325,755   1,280,816   1,334,324
      CD's $100,000
       and over                 250,489     329,087     353,167     377,748
      Other Time
       Deposits                 679,825     866,379     897,653     916,062
    Short-term Borrowings       211,391     472,045     552,505     421,894
    Long-term Debt              246,403     281,163     280,921     270,950
    Shareholders' Equity        349,073     438,499     450,717     448,694

    Balance Sheet
     (Daily Averages)
    -----------------

    Assets                   $3,407,665  $3,701,389  $4,346,481  $4,419,465
    Earning Assets            3,198,279   3,434,268   3,961,327   4,042,118
    Securities                  369,400     386,243     472,293     490,754
    Loans, Gross              2,828,762   3,048,024   3,488,843   3,551,179
    Deposits                  2,579,321   2,712,198   3,086,428   3,205,711
    Shareholders' Equity        345,939     377,160     447,941     458,600


                                              2009
                                              ----
                                  March       June      September
    Asset Quality Data             1Q          2Q          3Q
    ------------------             --          --          --

    Nonaccrual Loans and
     Nonperforming Loans        $92,047     $71,433     $86,454
    Assets Acquired through
     Foreclosure or
     Repossession                 1,452       2,262       4,745
    Nonperforming Assets         93,499      73,695      91,199
    Allowance for Loan
     Losses                      59,847      57,875      60,880
    Nonperforming Loans /
     Loans                         2.62%       2.06%       2.51%
    Allowance for Loan
     Losses / Loans                1.70%       1.67%       1.77%
    Allowance for Loan
     Losses / Nonperforming
     Loans                           65%         81%         70%
    Net Loan Charge-offs
     (Recoveries)                 4,231      34,156       5,376
    Net Loan Charge-offs
     (Recoveries)
     (annualized)/
     Average Loans                 0.49%       3.91%       0.62%

    Balance Sheet
     (Period-End)
    -------------

    Assets                   $4,314,540  $4,243,876  $4,208,224
    Earning Assets            3,948,774   3,868,782   3,836,327
    Securities                  429,919     409,011     389,980
    Loans, Gross              3,518,855   3,459,771   3,446,347
    Total Deposits            3,244,197   3,155,852   3,279,784
      Non-Interest
       Bearing Deposits         625,325     629,967     673,863
      NOW, Money
       Market & Savings       1,264,407   1,170,573   1,212,073
      CD's $100,000 and
       over                     422,841     403,694     472,736
      Other Time Deposits       931,624     951,618     921,112
    Short-term Borrowings       225,898     291,763     143,980
    Long-term Debt              232,282     207,028     186,772
    Shareholders' Equity        547,276     533,094     541,682

    Balance Sheet
     (Daily Averages)
    -----------------

    Assets                   $4,360,166  $4,304,406  $4,207,966
    Earning Assets            3,980,258   3,935,389   3,836,806
    Securities                  445,150     427,285     397,106
    Loans, Gross              3,534,064   3,508,104   3,439,700
    Deposits                  3,251,587   3,220,761   3,251,265
    Shareholders' Equity        542,240     549,968     540,153



    S&T Bancorp, Inc.
    Consolidated Selected Financial Data
    September 30, 2009
    (Dollars in thousands, except per
     share data)

                                                    2008
                                                    ----
                                    March       June    September  December
                                      1Q         2Q         3Q        4Q
                                      --         --         --        --
    Profitability Ratios
     (annualized)
    --------------------
    Common Return
     on Average Assets               1.75%      1.51%      1.44%     1.42%
    Common Return
     on Average Tangible
     Common Assets (6)               1.78%      1.54%      1.50%     1.48%
    Common Return
     on Average
     Shareholders' Equity           17.27%     14.78%     13.93%    13.71%
    Common Return
     on Average Tangible
     Common Equity (7)              20.37%     19.17%     22.95%    22.19%
    Yield on Earning
     Assets (FTE)                    6.49%      6.05%      5.92%     5.83%
    Cost of Interest
     Bearing Funds                   3.10%      2.43%      2.23%     2.06%
    Net Interest
     Margin (FTE)(4)                 3.99%      4.08%      4.07%     4.13%
    Efficiency
     Ratio (FTE)(1)                 44.23%     50.11%     43.67%    40.80%

    Capitalization Ratios
    ---------------------
    Dividends Paid
     to Net Income                  51.23%     55.05%     54.17%    54.13%
    Common Equity
     to Assets (8)                  10.08%     10.07%     10.10%    10.11%
    Leverage Ratio (2)               9.28%      8.05%      7.15%     7.30%
    Risk Based
     Capital - Tier I (3)           10.29%      7.99%      8.23%     8.65%
    Risk Based
     Capital - Tier II (3)          12.46%     11.12%     11.40%    11.82%
    Tangible Common
     Equity/Tangible Assets (8)      8.69%      6.25%      6.42%     6.41%

    Definitions and reconciliation of GAAP to non-GAAP financial
     measures:
    -------------------------------------------------------------
    (1)  Recurring non-interest expense divided by recurring non-interest
         income plus net interest income, on a fully taxable equivalent
         basis.
    (2)  Equity less goodwill to total assets and allowance for loan losses.
    (3)  Effective October 1, 1998, banking regulators require financial
         institutions to include 45% of the pretax net unrealized holding
         gains on available for sale equity securities in Tier 2 capital.
    (4)  Net interest income, on a fully taxable equivalent basis,
         annualized divided by quarter-to-date average earning assets.
    (5)  Tangible Common Book Value
         Common book
          value (GAAP basis)             $14.18  $16.00  $16.34  $16.24
         Effect of excluding
          intangible assets               (2.14)  (6.48)  (6.37)  (6.34)
                                          -----   -----   -----   -----
         Tangible common
          book value                     $12.04   $9.52   $9.97   $9.90

    (6)  Common Return on Average Tangible Common Assets
         Common return
          on average assets
          (GAAP basis)                     1.75%   1.51%   1.44%   1.42%
         Effect of excluding
          intangible assets                0.03%   0.03%   0.06%   0.06%
                                           ----    ----    ----    ----
         Common return
          on average tangible
          common assets                    1.78%   1.54%   1.50%   1.48%

    (7)  Common Return on Average Tangible Common Equity
         Common return
          on average equity
          (GAAP basis)                    17.27%  14.78%  13.93%  13.71%
         Effect of excluding
          intangible assets                3.10%   4.39%   9.02%   8.48%
         Effect of excluding
          preferred stock                     -       -       -       -
                                           ----    ----    ----    ----
         Common return
          on average tangible
          common equity                   20.37%  19.17%  22.95%  22.19%

    (8)  Tangible Common Equity / Tangible Assets
         Common equity /
          Assets (GAAP basis)             10.08%  10.07%  10.10%  10.11%
         Effect of excluding
          intangible assets               -1.39%  -3.82%  -3.68%  -3.70%
                                          -----   -----   -----   -----
         Tangible common
          equity / Tangible assets         8.69%   6.25%   6.42%   6.41%


                                                2009
                                                ----
                                    March       June    September
                                      1Q         2Q         3Q
                                      --         --         --
    Profitability Ratios
     (annualized)
    --------------------
    Common Return
     on Average Assets              -0.29%     -0.95%      0.73%
    Common Return
     on Average Tangible
     Common Assets (6)              -0.30%     -0.99%      0.76%
    Common Return
     on Average
     Shareholders' Equity           -2.34%     -7.44%      5.67%
    Common Return
     on Average Tangible
     Common Equity (7)              -4.53%    -15.13%     11.75%
    Yield on Earning
     Assets (FTE)                    5.27%      5.16%      5.14%
    Cost of Interest
     Bearing Funds                   1.82%      1.65%      1.53%
    Net Interest
     Margin (FTE)(4)                 3.82%      3.86%      3.94%
    Efficiency
     Ratio (FTE)(1)                 53.28%     66.04%     51.32%

    Capitalization Ratios
    ---------------------
    Dividends Paid
     to Net Income                -273.87%    -84.02%     53.77%
    Common Equity
     to Assets (8)                  10.26%     10.09%     10.37%
    Leverage Ratio (2)               9.73%      9.56%      9.92%
    Risk Based
     Capital - Tier I (3)           11.58%     11.33%     11.57%
    Risk Based
     Capital - Tier II (3)          14.82%     14.60%     14.86%
    Tangible Common
     Equity/Tangible Assets (8)      6.46%      6.23%      6.48%


    Definitions and reconciliation of GAAP to non-GAAP financial
     measures:
    -------------------------------------------------------------
    (1)  Recurring non-interest expense divided by recurring non-interest
         income plus net interest income, on a fully taxable equivalent
         basis.
    (2)  Equity less goodwill to total assets and allowance for loan losses.
    (3)  Effective October 1, 1998, banking regulators require financial
         institutions to include 45% of the pretax net unrealized holding
         gains on available for sale equity securities in Tier 2 capital.
    (4)  Net interest income, on a fully taxable equivalent basis,
         annualized divided by quarter-to-date average earning assets.
    (5)  Tangible Common Book Value
         Common book
          value (GAAP basis)             $16.01  $15.48  $15.77
         Effect of excluding
          intangible assets               (6.33)  (6.31)  (6.33)
                                          -----   -----   -----
         Tangible common
          book value                      $9.68   $9.17   $9.44

    (6)  Common Return on Average Tangible Common Assets
         Common return
          on average assets
          (GAAP basis)                    -0.29%  -0.95%   0.73%
         Effect of excluding
          intangible assets               -0.01%  -0.04%   0.03%
                                          -----   -----    ----
         Common return
          on average tangible
          common assets                   -0.30%  -0.99%   0.76%

    (7)  Common Return on Average Tangible Common Equity
         Common return
          on average equity
          (GAAP basis)                    -2.34%  -7.44%   5.67%
         Effect of excluding
          intangible assets               -1.08%  -4.23%   3.38%
         Effect of excluding
          preferred stock                 -1.11%  -3.46%   2.70%
                                          -----   -----    ----
         Common return
          on average tangible
          common equity                   -4.53% -15.13%  11.75%

    (8)  Tangible Common Equity / Tangible Assets
         Common equity /
          Assets (GAAP basis)             10.26%  10.09%  10.37%
         Effect of excluding
          intangible assets               -3.80%  -3.86%  -3.89%
                                          -----   -----   -----
         Tangible common
          equity / Tangible assets         6.46%   6.23%   6.48%


                                    Year-to-date
                                    ------------
                                  September  September
                                     2009       2008
                                     ----       ----
    Profitability Ratios
     (annualized)
    --------------------
    Common Return
     on Average Assets              -0.17%      1.55%
    Common Return
     on Average Tangible
     Common Assets (6)              -0.18%      1.60%
    Common Return
     on Average
     Shareholders' Equity           -1.38%     15.19%
    Common Return
     on Average Tangible
     Common Equity (7)              -2.78%     20.94%
    Yield on Earning
     Assets (FTE)                    5.19%      6.14%
    Cost of Interest
     Bearing Funds                   1.67%      2.55%
    Net Interest
     Margin (FTE)(4)                 3.87%      4.05%
    Efficiency
     Ratio (FTE)(1)                 56.97%     45.94%
                                    -----

    Capitalization Ratios
    ---------------------
    Dividends Paid
     to Net Income
    Common Equity
     to Assets (8)
    Leverage Ratio (2)
    Risk Based
     Capital - Tier I (3)
    Risk Based
     Capital - Tier II (3)
    Tangible Common
     Equity/Tangible Assets (8)

    Definitions and reconciliation of GAAP to non-GAAP financial
     measures:
    -------------------------------------------------------------
    (1)  Recurring non-interest expense divided by recurring non-interest
         income plus net interest income, on a fully taxable equivalent
         basis.
    (2)  Equity less goodwill to total assets and allowance for loan losses.
    (3)  Effective October 1, 1998, banking regulators require financial
         institutions to include 45% of the pretax net unrealized holding
         gains on available for sale equity securities in Tier 2 capital.
    (4)  Net interest income, on a fully taxable equivalent basis,
         annualized divided by quarter-to-date average earning assets.
    (5)  Tangible Common Book Value
         Common book
          value (GAAP basis)             $15.77  $16.34
         Effect of excluding
          intangible assets               (6.33)  (6.37)
                                          -----   -----
         Tangible common
          book value                      $9.44   $9.97

    (6)  Common Return on Average Tangible Common Assets
         Common return
          on average assets
          (GAAP basis)                    -0.17%   1.55%
         Effect of excluding
          intangible assets               -0.01%   0.05%
                                          -----    ----
         Common return
          on average tangible
          common assets                   -0.18%   1.60%

    (7)  Common Return on Average Tangible Common Equity
         Common return
          on average equity
          (GAAP basis)                    -1.38%  15.19%
         Effect of excluding
          intangible assets               -0.75%   5.75%
         Effect of excluding
          preferred stock                 -0.65%   0.00%
                                          -----    ----
         Common return
          on average tangible
          common equity                   -2.78%  20.94%

    (8)  Tangible Common Equity / Tangible Assets
         Common equity /
          Assets (GAAP basis)
         Effect of excluding
          intangible assets
         Tangible common
          equity / Tangible assets

SOURCE S&T Bancorp, Inc.