EX-99.1

EX-99.1 2 d762216dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

July 29, 2014

S&T Bancorp, Inc. Announces Second Quarter 2014

Results and Declares Dividend

Indiana, Pennsylvania – July 29, 2014 – S&T Bancorp, Inc. (S&T) (NASDAQ: STBA) has announced its second quarter 2014 earnings. Net income increased 4.9% to $14.7 million with diluted earnings per share of $0.49 compared to the first quarter of 2014 net income of $14.0 million and diluted earnings per share of $0.47. Net income increased 4.4% compared to the second quarter of 2013 net income of $14.1 million and diluted earnings per share of $0.47.

Second Quarter Highlights:

•

Return on average assets and return on average equity both improved to 1.26% and 9.99% compared to 1.23% and 9.83% in the first quarter of 2014.

•

Solid loan growth continues with an increase of $97.2 million in total portfolio loans compared to March 31, 2014, representing an 11% annualized growth rate.

•

Net interest margin (FTE) expanded five basis points to 3.56% and net interest income increased $1.3 million compared to the first quarter of 2014.

•

Total nonperforming loans decreased $6.1 million, or 29%, to only $14.9 million at June 30, 2014 compared to $21.0 million at March 31, 2014.

•

S&T declared a $0.17 per share dividend compared to $0.15 in the same period a year ago.

“We are pleased to report another quarter of strong earnings driven by double-digit annualized loan growth, margin expansion and favorable asset quality trends,” said Todd Brice, president and chief executive officer of S&T. “Our market expansion continued during the quarter with the grand opening of our State College office. We are excited to be entering this new market and look forward to capitalizing on the growth opportunities in this region.”

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S&T Earnings Release –2

S&T Bancorp, Inc. Announces Second Quarter 2014

Results and Declares Dividend

(continued)

Net Interest Income

Net interest income increased $1.3 million, or 3.6%, compared to $35.6 million in the first quarter of 2014. The higher net interest income is due to an increase in average loans of $73.6 million and an improvement in the mix of earning assets. Compared to the same period last year, loan growth has driven net interest income higher by 6.5%. Net interest margin (FTE) expanded to 3.56% in the second quarter of 2014 compared to 3.51% in both the first quarter of 2014 and the second quarter of 2013.

Asset Quality

Asset quality trends continue to be favorable with improvement in all metrics. Nonperforming assets to total loans plus OREO decreased to 0.41% compared to 0.59% at March 31, 2014. During the second quarter of 2014, there were net recoveries of $1.1 million compared to net recoveries of $0.1 million in the first quarter of 2014. As a result of net recoveries and improved asset quality, the provision for loan losses was ($1.1) million compared to $0.3 million in the first quarter of 2014. The allowance for loan losses was unchanged at $46.6 million, representing 1.25% of total loans at June 30, 2014 and 1.28% of total loans at March 31, 2014.

Noninterest Income and Expense

Noninterest income increased $0.4 million to $11.8 million compared to $11.4 million in the first quarter of 2014 primarily due to higher debit and credit card fees and other income offset by a decrease in insurance fees. Debit and credit card fees increased $0.2 million due to higher activity compared to the first quarter of 2014. Other income increased $0.3 million due to higher letter of credit fees and interest rate swap fees from our commercial loan customers. Insurance fees decreased $0.3 million primarily due to $0.4 million of annual profit sharing that we received from our insurance carriers in the first quarter of 2014.

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S&T Earnings Release –3

S&T Bancorp, Inc. Announces Second Quarter 2014

Results and Declares Dividend

(continued)

Noninterest expense increased $1.3 million to $30.2 million compared to $28.9 million in the first quarter of 2014. Various expense categories increased, including marketing and professional services and legal due to the timing of services performed and increased activity in the second quarter compared to the first quarter of 2014. Salaries and employee benefits increased $0.4 million primarily due to higher incentives related to strong performance and higher medical costs.

Financial Condition

Total assets increased $81.0 million to $4.8 billion at June 30, 2014 compared to $4.7 billion at March 31, 2014. Loan growth was strong representing our eighth consecutive quarter of growth with an increase of $97.2 million, or 11% annualized, in total portfolio loans. Commercial loans grew $86.6 million, or 13% annualized, during the quarter, with growth in all commercial loan categories. Total deposits remained relatively unchanged at $3.9 billion at both June 30, 2014 and March 31, 2014. S&T’s risk-based capital ratios are down due to strong loan growth outpacing retained earnings growth. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T approved a $0.17 per share cash dividend at its regular meeting held July 28, 2014. The dividend is payable August 28, 2014 to shareholders of record on August 14, 2014. This dividend compares to a common stock dividend of $0.17 per share in the prior quarter and $0.15 per share declared in the same period a year ago.

Conference Call

S&T will host its second quarter 2014 earnings conference call live over the Internet at 1:00 p.m. Eastern Time on Tuesday, July 29, 2014. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select

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S&T Earnings Release –4

S&T Bancorp, Inc. Announces Second Quarter 2014

Results and Declares Dividend

(continued)

“2nd Quarter 2014 Conference Call” and follow the instructions.

About S&T Bancorp, Inc.

Headquartered in Indiana, PA, S&T Bancorp, Inc. operates offices within Allegheny, Armstrong, Blair, Butler, Cambria, Centre, Clarion, Clearfield, Indiana, Jefferson, Washington and Westmoreland counties, as well as loan production offices in northeast and central Ohio. With assets of $4.8 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market under the symbol STBA. For more information, visit http://www.stbancorp.com.

For more information:

Mark Kochvar

Chief Financial Officer

800 Philadelphia Street

Indiana, PA 15701

(724) 465-4826

mark.kochvar@stbank.net

www.stbancorp.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.		S&T Earnings Release –5
Consolidated Selected Financial Data
Unaudited


	2014			2014			2013
(dollars in thousands, except per share data)	Second Quarter			First Quarter			Second Quarter
INTEREST INCOME
Loans, including fees	$	36,614		$	35,649		$	35,765
Investment Securities:
Taxable		2,184			1,983			1,879
Tax-exempt		979			929			815
Dividends		95			104			94

Total Interest Income		39,872			38,665			38,553


INTEREST EXPENSE
Deposits		2,476			2,510			2,951
Borrowings and junior subordinated debt securities		541			564			1,006

Total Interest Expense		3,017			3,074			3,957


NET INTEREST INCOME		36,855			35,591			34,596
Provision for loan losses		(1,134	)		289			1,023

Net Interest Income After Provision for Loan Losses		37,989			35,302			33,573


NONINTEREST INCOME
Securities gains, net		40			1			—
Wealth management fees		2,837			2,955			2,820
Debit and credit card fees		2,724			2,502			3,150
Service charges on deposit accounts		2,574			2,509			2,495
Insurance fees		1,425			1,677			1,643
Mortgage banking		264			132			911
Other		1,907			1,640			1,848

Total Noninterest Income		11,771			11,416			12,867


NONINTEREST EXPENSE
Salaries and employee benefits		15,772			15,376			14,725
Data processing		2,219			2,095			2,137
Net occupancy		1,984			2,230			1,958
Furniture and equipment		1,277			1,271			1,230
Marketing		960			618			793
Other taxes		893			631			915
Professional services and legal		875			663			1,171
FDIC insurance		579			631			707
Other		5,606			5,399			4,750

Total Noninterest Expense		30,165			28,914			28,386


Income Before Taxes		19,595			17,804			18,054
Provision for income taxes		4,875			3,771			3,951


Net Income	$	14,720		$	14,033		$	14,103


Per Share Data:
Shares outstanding at end of period		29,797,204			29,718,126			29,738,305
Average shares outstanding - diluted		29,701,195			29,698,047			29,677,876
Average shares outstanding - two-class method		29,743,273			29,735,031			29,729,012
Diluted earnings per share⁽¹⁾	$	0.49		$	0.47		$	0.47
Dividends declared per share	$	0.17		$	0.16		$	0.15
Dividend yield (annualized)		2.74	%		2.70	%		3.06	%
Dividends paid to net income		34.32	%		33.91	%		31.61	%
Book value	$	20.04		$	19.64		$	18.39
Tangible book value⁽³⁾	$	14.07		$	13.65		$	12.38
Market value	$	24.85		$	23.70		$	19.60

Profitability Ratios (Annualized)
Return on average assets		1.26	%		1.23	%		1.26	%
Return on average tangible assets⁽⁴⁾		1.33	%		1.30	%		1.34	%
Return on average shareholders’ equity		9.99	%		9.83	%		10.36	%
Return on average tangible shareholders’ equity⁽⁵⁾		14.48	%		14.41	%		15.69	%

Efficiency ratio (FTE)⁽²⁾		60.36	%		59.83	%		58.37	%


S&T Bancorp, Inc.		S&T Earnings Release –6
Consolidated Selected Financial Data
Unaudited


	For the Six Months Ended June 30,
(in thousands, except per share data)	2014			2013
INTEREST INCOME
Loans, including fees	$	72,263		$	70,810
Investment securities:
Taxable		4,167			3,742
Tax-exempt		1,908			1,648
Dividends		199			196

Total Interest Income		78,537			76,396


INTEREST EXPENSE
Deposits		4,986			6,153
Borrowings and junior subordinated debt securities		1,105			1,978

Total Interest Expense		6,091			8,131


NET INTEREST INCOME		72,446			68,265
Provision for loan losses		(845	)		3,330

Net interest income after provision for loan losses		73,291			64,935


NONINTEREST INCOME
Securities gains, net		41			2
Wealth management fees		5,792			5,396
Debit and credit card fees		5,226			5,601
Service charges on deposit accounts		5,083			4,943
Insurance fees		3,102			3,418
Mortgage banking		396			1,393
Gain on sale of merchant card servicing business		—			3,093
Other		3,547			3,827

Total Noninterest Income		23,187			27,673


NONINTEREST EXPENSE
Salaries and employee benefits		31,148			30,792
Data processing		4,314			4,801
Net occupancy		4,214			4,127
Furniture and equipment		2,548			2,538
Marketing		1,578			1,482
Other Taxes		1,524			1,914
Professional services and legal		1,538			2,145
FDIC assessment		1,210			1,483
Other		11,005			10,720

Total Noninterest Expense		59,079			60,002


Income Before Taxes		37,399			32,606
Provision for income taxes		8,646			6,173


Net Income	$	28,753		$	26,433


Per Share Data:
Average shares outstanding - diluted		29,700,170			29,679,144
Average shares outstanding - two-class method		29,739,174			29,729,355
Diluted earnings per share⁽¹⁾	$	0.97		$	0.89
Dividends declared per share	$	0.33		$	0.30
Dividends paid to net income		34.12	%		33.74	%

Profitability Ratios (Annualized)
Return on average assets		1.25	%		1.19	%
Return on average tangible assets⁽⁸⁾		1.31	%		1.27	%
Return on average shareholders’ equity		9.91	%		9.81	%
Return on average tangible shareholders’ equity⁽⁹⁾		14.45	%		14.93	%

Efficiency ratio (FTE)⁽²⁾		60.10	%		61.05	%


S&T Bancorp, Inc.		S&T Earnings Release –7
Consolidated Selected Financial Data
Unaudited


	2014			2014			2013
(dollars in thousands)	Second Quarter			First Quarter			Second Quarter
ASSETS
Cash and due from banks, including interest-bearing deposits	$	130,235		$	185,303		$	247,432
Securities available-for-sale, at fair value		588,488			551,896			479,821
Loans held for sale		3,102			1,133			3,185
Commercial loans:
Commercial real estate		1,636,383			1,607,958			1,501,491
Commercial and industrial		922,191			884,870			826,696
Commercial construction		188,311			167,432			167,225

Total Commercial Loans		2,746,885			2,660,260			2,495,412
Consumer loans:
Residential mortgage		492,589			490,120			463,446
Home equity		416,226			410,695			413,585
Installment and other consumer		65,838			64,561			67,983
Consumer construction		3,541			2,260			2,807

Total Consumer Loans		978,194			967,636			947,821

Total portfolio loans		3,725,079			3,627,896			3,443,233
Allowance for loan losses		(46,580	)		(46,616	)		(46,105	)

Total portfolio loans, net		3,678,499			3,581,280			3,397,128
Goodwill		175,820			175,820			175,820
Other assets		211,886			211,555			225,373

Total Assets	$	4,788,030		$	4,706,987		$	4,528,759


LIABILITIES
Deposits:
Noninterest-bearing demand	$	1,089,999		$	1,032,372		$	947,747
Interest-bearing demand		307,897			312,477			297,028
Money market		301,719			360,414			329,065
Savings		1,024,050			1,034,388			1,003,705
Certificates of deposit		1,141,581			1,128,630			1,071,083

Total Deposits		3,865,246			3,868,281			3,648,628

Securities sold under repurchase agreements		25,269			38,434			74,151
Short-term borrowings		185,000			100,000			125,000
Long-term borrowings		20,636			21,226			22,965
Junior subordinated debt securities		45,619			45,619			45,619
Other liabilities		49,073			49,776			65,544

Total Liabilities		4,190,843			4,123,336			3,981,907

SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity		597,187			583,651			546,852

Total Liabilities and Shareholders’ Equity	$	4,788,030		$	4,706,987		$	4,528,759


Capitalization Ratios
Shareholders’ equity / assets		12.47	%		12.40	%		12.08	%
Tangible common equity / tangible assets⁽⁶⁾		9.10	%		8.96	%		8.46	%
Tier 1 leverage ratio		9.91	%		9.79	%		9.54	%
Risk-based capital - tier 1		12.30	%		12.43	%		12.28	%
Risk-based capital - total		14.26	%		14.41	%		14.30	%


S&T Bancorp, Inc.		S&T Earnings Release –8
Consolidated Selected Financial Data
Unaudited


	2014				2014				2013
(dollars in thousands)	Second Quarter				First Quarter				Second Quarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Loans	$	3,650,050	4.11	%	$	3,576,484	4.13	%	$	3,419,393	4.28	%
Taxable investment securities		428,618	1.99	%		395,470	1.97	%		365,799	2.04	%
Tax-exempt investment securities		129,687	4.65	%		121,464	4.71	%		106,194	4.73	%
Federal Home Loan Bank and other restricted stock		12,752	3.89	%		13,391	2.70	%		12,420	0.31	%
Interest-bearing deposits with banks		88,064	0.28	%		147,890	0.23	%		186,265	0.28	%

Total Interest-earning Assets		4,309,171	3.84	%		4,254,699	3.81	%		4,090,071	3.89	%

Noninterest-earning assets		372,445				377,462				400,592

Total Assets	$	4,681,616			$	4,632,161			$	4,490,663


LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing demand	$	311,719	0.03	%	$	313,420	0.02	%	$	303,461	0.02	%
Money market		327,666	0.15	%		350,314	0.15	%		327,733	0.14	%
Savings		1,035,691	0.16	%		1,014,205	0.16	%		1,001,258	0.18	%
Certificates of deposit		899,086	0.78	%		910,716	0.81	%		984,304	0.95	%
CDARs and brokered deposits		230,036	0.32	%		190,598	0.33	%		63,564	0.25	%
Securities sold under repurchase agreements		30,718	0.01	%		36,596	0.01	%		67,461	0.13	%
Short-term borrowings		108,640	0.30	%		127,778	0.31	%		71,429	0.25	%
Long-term borrowings		20,873	3.01	%		21,466	3.06	%		23,196	3.05	%
Junior subordinated debt securities		45,619	2.66	%		45,619	2.69	%		82,817	3.70	%

Total Interest-bearing Liabilities		3,010,048	0.40	%		3,010,712	0.41	%		2,925,223	0.54	%

Noninterest-bearing demand		1,028,997				989,799				946,862
Other liabilities		51,390				52,851				72,370
Shareholders’ equity		591,181				578,799				546,208

Total Liabilities and Shareholders’ Equity	$	4,681,616			$	4,632,161			$	4,490,663

Net Interest Margin ⁽⁷⁾			3.56	%			3.51	%			3.51	%


	For the Six Months Ended June 30,
	2014				2013
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Loans	$	3,613,470	4.12	%	$	3,388,915	4.30	%
Taxable investment securities		412,142	1.98	%		359,622	2.07	%
Tax-exempt investment securities		125,591	4.68	%		108,310	4.68	%
Federal Home Loan Bank and other restricted stock		13,070	3.28	%		13,415	0.42	%
Interest-bearing deposits with banks		117,812	0.25	%		198,379	0.25	%

Total Interest-earning Assets		4,282,085	3.82	%		4,068,641	3.90	%

Noninterest-earning assets		374,940				400,901

Total Assets	$	4,657,025			$	4,469,542


LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing demand	$	312,565	0.02	%	$	306,792	0.02	%
Money market		338,928	0.15	%		332,961	0.14	%
Savings		1,025,007	0.16	%		987,616	0.19	%
Certificates of deposit		904,869	0.79	%		998,041	0.99	%
CDARs and brokered deposits		210,426	0.33	%		47,480	0.24	%
Securities sold under repurchase agreements		33,641	0.01	%		65,411	0.15	%
Short-term borrowings		118,156	0.30	%		66,298	0.24	%
Long-term borrowings		21,168	3.04	%		26,323	3.12	%
Junior subordinated debt securities		45,619	2.68	%		86,696	3.36	%

Total Interest-bearing Liabilities		3,010,379	0.41	%		2,917,618	0.56	%

Noninterest-bearing demand		1,009,506				936,141
Other liabilities		52,116				72,450
Shareholders’ equity		585,024				543,333

Total Liabilities and Shareholders’ Equity	$	4,657,025			$	4,469,542


Net Interest Margin ⁽¹⁰⁾			3.54	%			3.50	%


S&T Bancorp, Inc.		S&T Earnings Release –9
Consolidated Selected Financial Data
Unaudited


	2014				2014				2013
(dollars in thousands)	Second Quarter				First Quarter				Second Quarter
Nonperforming Loans (NPL)
Commercial loans:			% NPL				% NPL				% NPL

Commercial real estate	$	5,658	0.35	%	$	10,265	0.64	%	$	20,732	1.38	%
Commercial and industrial		3,837	0.42	%		3,181	0.36	%		5,204	0.63	%
Commercial construction		1,870	0.99	%		1,976	1.18	%		4,775	2.86	%

Total Nonperforming Commercial Loans		11,365	0.41	%		15,422	0.58	%		30,711	1.23	%
Consumer loans:
Residential mortgage		2,118	0.43	%		2,948	0.60	%		3,465	0.75	%
Home equity		1,431	0.34	%		2,630	0.64	%		3,674	0.89	%
Installment and other consumer		26	0.04	%		22	0.03	%		33	0.05	%
Consumer construction		—	—			—	—			—	—

Total Nonperforming Consumer Loans		3,575	0.37	%		5,600	0.58	%		7,172	0.76	%

Total Nonperforming Loans	$	14,940	0.40	%	$	21,022	0.58	%	$	37,883	1.10	%


	2014			2014			2013
	Second Quarter			First Quarter			Second Quarter
Asset Quality Data
Nonperforming loans	$	14,940		$	21,022		$	37,883
Assets acquired through foreclosure or repossession		431			343			408
Nonperforming assets		15,371			21,365			38,291
Troubled debt restructurings (nonaccruing)		5,241			9,269			16,064
Troubled debt restructurings (accruing)		37,120			36,059			40,940
Total troubled debt restructurings		42,361			45,328			57,004
Nonperforming loans / loans		0.40	%		0.58	%		1.10	%
Nonperforming assets / loans plus OREO		0.41	%		0.59	%		1.11	%
Allowance for loan losses / loans		1.25	%		1.28	%		1.34	%
Allowance for loan losses / nonperforming loans		312	%		222	%		122	%
Net loan (recoveries) charge-offs		(1,099	)		(72	)		854
Net loan (recoveries) charge-offs (annualized) / average loans		(0.12	%)		(0.01	%)		0.10	%


	For the Six Months Ended June 30,
	2014			2013
Asset Quality Data
Net loan (recoveries) charge-offs	$	(1,171	)	$	3,708
Net loan (recoveries) charge-offs (annualized) / average loans		(0.07	%)		0.22	%


S&T Bancorp, Inc.		S&T Earnings Release –10
Consolidated Selected Financial Data
Unaudited

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.


	2014			2014			2013
	Second Quarter			First Quarter			Second Quarter
⁽³⁾ Tangible Book Value (non-GAAP)
Total shareholders’ equity	$	597,187		$	583,651		$	546,852
Less: goodwill and other intangible assets, net of deferred tax liability		(177,866	)		(178,059	)		(178,750	)

Tangible common equity (non-GAAP)		419,321			405,592			368,102
Common shares outstanding		29,797			29,718			29,738

Tangible book value (non-GAAP)	$	14.07		$	13.65		$	12.38


⁽⁴⁾ Return on Average Tangible Assets (non-GAAP)
Net income (annualized)	$	59,042		$	56,912		$	56,567
Plus: amortization of intangibles net of tax (annualized)		775			833			1,076

Net income before amortization of intangibles (annualized)		59,817			57,745			57,643

Average total assets		4,681,616			4,632,161			4,490,663
Less: average goodwill and other intangibles, net of deferred tax liability		(177,963	)		(178,164	)		(178,876	)

Average tangible assets (non-GAAP)		4,503,653			4,453,997			4,311,787

Return on average tangible assets (non-GAAP)		1.33	%		1.30	%		1.34	%


⁽⁵⁾ Return on Average Tangible Shareholders’ Equity (non-GAAP)
Net income (annualized)	$	59,042		$	56,912		$	56,567
Plus: amortization of intangibles net of tax (annualized)		775			833			1,076

Net income before amortization of intangibles (annualized)		59,817			57,745			57,643

Average total shareholders’ equity		591,181			578,799			546,208
Less: average goodwill and other intangibles, net of deferred tax liability		(177,963	)		(178,164	)		(178,876	)

Average tangible equity (non-GAAP)		413,218			400,635			367,332

Return on average tangible equity (non-GAAP)		14.48	%		14.41	%		15.69	%


⁽⁶⁾ Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders’ equity	$	597,187		$	583,651		$	546,852
Less: goodwill and other intangible assets, net of deferred tax liability		(177,866	)		(178,059	)		(178,750	)

Tangible common equity (non-GAAP)		419,321			405,592			368,102

Total assets		4,788,030			4,706,987			4,528,759
Less: goodwill and other intangible assets, net of deferred tax liability		(177,866	)		(178,059	)		(178,750	)

Tangible assets (non-GAAP)		4,610,164			4,528,928			4,350,009

Tangible common equity to tangible assets (non-GAAP)		9.10	%		8.96	%		8.46	%


⁽⁷⁾ Net Interest Margin Rate (FTE) (non-GAAP)
Interest income	$	39,872		$	38,665		$	38,553
Less: interest expense		(3,017	)		(3,074	)		(3,957	)

Net interest income per consolidated statements of Net Income		36,855			35,591			34,596
Plus: taxable equivalent adjustment		1,393			1,323			1,169

Net interest income (FTE) (non-GAAP)		38,248			36,914			35,765
Net interest income (FTE) (annualized)		153,412			149,708			143,453
Average earning assets		4,309,171			4,254,699			4,090,070

Net interest margin - (FTE) (non-GAAP)		3.56	%		3.51	%		3.51	%


S&T Bancorp, Inc.		S&T Earnings Release –11
Consolidated Selected Financial Data
Unaudited

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


	For the Six Months Ended June 30,
	2014			2013
⁽⁸⁾ Return on Average Tangible Assets (non-GAAP)
Net income (annualized)	$	57,983		$	53,304
Plus: amortization of intangibles net of tax (annualized)		804			1,106

Net income before amortization of intangibles (annualized)		58,787			54,410

Average total assets		4,657,025			4,469,542
Less: average goodwill and other intangibles, net of deferred tax liability		(178,063	)		(179,017	)

Average tangible assets (non-GAAP)		4,478,962			4,290,525

Return on average tangible assets (non-GAAP)		1.31	%		1.27	%


⁽⁹⁾ Return on Average Tangible Shareholders’ Equity (non-GAAP)
Net income (annualized)	$	57,983		$	53,304
Plus: amortization of intangibles net of tax (annualized)		804			1,106

Net income before amortization of intangibles (annualized)		58,787			54,410

Average total shareholders’ equity		585,024			543,333
Less: average goodwill and other intangibles, net of deferred tax liability		(178,063	)		(179,017	)

Average tangible equity (non-GAAP)		406,961			364,316

Return on average tangible equity (non-GAAP)		14.45	%		14.93	%


⁽¹⁰⁾ Net Interest Margin Rate (FTE) (non-GAAP)
Interest income	$	78,537		$	76,396
Less: interest expense		(6,091	)		(8,131	)

Net interest income		72,446			68,265
Plus: taxable equivalent adjustment		2,717			2,341

Net interest income (FTE) (non-GAAP)		75,163			70,606
Net interest income (FTE) (annualized)		151,572			142,382
Average earning assets		4,282,085			4,068,642

Net interest margin - (FTE) (non-GAAP)		3.54	%		3.50	%