S&T Bancorp, Inc. Announces Earnings

INDIANA, Pa., April 20 /PRNewswire-FirstCall/ -- S&T Bancorp, Inc. (Nasdaq:
STBA) today announced a net loss of $3.1 million or $0.11 diluted earnings per
share for the quarter ended March 31, 2009 compared to net income of $14.9
million or $0.60 diluted earnings per share for the first quarter of 2008.
The decrease in net income and earnings per share is primarily due to higher
provision for loan losses.

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Todd D. Brice, president and chief executive officer, commented, "The
unprecedented economic environment has negatively impacted our commercial
portfolio this quarter. Several of our customers are experiencing
deterioration in their overall financial condition, which has resulted in a
significant increase in our provision for loan losses. We are extremely
disappointed in our results this quarter as this is the first loss reported in
many years. We do feel that the increase to our loan loss reserve is prudent
and, with our strong capital position, will allow us to work through this
difficult period with our customers."

During the first quarter of 2009, nonperforming loans increased to $92.0
million or 2.62 percent of total loans as compared to $42.5 million or 1.19
percent as of December 31, 2008.

The most significant increases to nonperforming loans were:
-- A $32.3 million commercial relationship with an energy-related
company.
Recent decreases in commodity prices have created cash flow
difficulties
for the company and a $9.3 million specific reserve has been
established
for the loans.
-- A $7.5 million real estate development participation loan that has
delayed construction pending better economic conditions. A $0.7
million
specific reserve has been established.
-- A $2.5 million commercial relationship secured by real estate
partnership interests. Specific reserves for the full loan amounts
were
established pending resolution of legal issues among the partners.
-- $4.1 million for three real estate development projects. Specific
reserves of $0.6 million have been established.

-- $3.4 million for a condominium project. A $0.2 million specific
reserve
has been established.

The provision for loan losses was $21.4 million, $5.6 million and $1.3 million
for the quarters ending March 31, 2009, December 31, 2008 and March 31, 2008,
respectively. The allowance for loan losses to total loans for the same
periods was 1.70%, 1.20% and 1.25%. During the first quarter of 2009, net
charge offs were $4.2 million or 0.49 percent of average loans on an
annualized basis. For the same period of 2008, net recoveries were $0.1
million or 0.01 percent of average loans on an annualized basis. The most
significant charge offs for the quarter ending March 31, 2009 were $2.7
million for a $3.5 million loan on a mixed use commercial property that lost a
major tenant, and a $1.1 million charge off for a $2.4 million office building
that was foreclosed and sold during the first quarter of 2009.

Brice commented, "Addressing troubled commercial credits quickly and
conservatively has always been, and will continue to be, our credit
philosophy. We are fortunate that our residential mortgage and home equity
portfolios continue to perform well as a result of traditionally conservative
underwriting and the avoidance of any subprime loan products. However, we do
recognize that some of our home mortgage customers are experiencing difficult
economic times, and we have implemented a number of initiatives and products
to assist those customers."

Net interest income on a fully taxable equivalent basis increased by $5.8
million, or 18 percent, to $37.5 million for the first quarter of 2009, as
compared to the same period of 2008. Net interest income was positively
affected by the IBT acquisition in the second quarter of 2008 and $178.0
million of organic loan growth. The net interest margin on a fully taxable
equivalent basis was 3.82 percent, 4.13 percent and 3.99 percent for the
quarters ending March 31, 2009, December 31, 2008 and March 31, 2008,
respectively. The net interest margin was negatively affected in the first
quarter of 2009 by higher delinquent interest and more aggressive solicitation
of deposits in order to decrease reliance on wholesale funding sources. The
fourth quarter of 2008 net interest margin was positively affected by
unusually wide spreads between federal funds and LIBOR rates.

Earning assets have increased $735.9 million over the past 12 months,
primarily driven by $749.2 million acquired through the IBT merger, a $153.8
million, or 7 percent, increase in commercial lending and a $24.2 million, or
3 percent, increase in consumer lending. Residential mortgage and home equity
loan applications have achieved record levels during the first quarter of 2009
as consumers took advantage of lower interest rates. $36.1 million of
residential mortgage loans and $38.4 million of home equity loans were
originated during the quarter ending March 31, 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 in loan portfolios. Investment
securities were reduced by $191.3 million over the same 12-month period, as
the risk/reward opportunities for leveraging activities has been significantly
reduced during the period.

Deposits increased $639.0 million during the 12-month period, including $573.6
million from the IBT acquisition. Brice added, "The $93 million of organic
growth in demand deposits is especially encouraging since this has been an
area of strategic focus in order to deepen our relationship banking philosophy
with both commercial and retail customers. We know that we have excellent and
very competitive deposit products, especially our CMA savings account, cash
management services and electronic banking systems, that we believe will
continue to keep us competitive and serve our customers' needs well into the
future."

Noninterest income, excluding investment security losses, increased $1.4
million for the first quarter of 2009 as compared to the first quarter of
2008. The increase is primarily due to strong performances in mortgage
banking activities, debit/credit card revenues and higher deposit fees.
Positively affecting debit/credit card and deposit fees was the increased
customer base resulting from the IBT merger, as well as organic expansion of
demand deposit accounts.

Net investment security losses for the first quarter of 2009 were $1.2
million, a decrease from the $0.6 million of realized gains for the same
period of 2008. The investment security losses for the first quarter of 2009
are other-than-temporary impairment charges for two bank equity holdings. The
equity securities portfolio has a market value of $13.2 million and net
unrealized losses of $4.0 million as of March 31, 2009, as compared to $40.3
million and $8.2 million of unrealized gains at March 31, 2008.

Noninterest expense increased $7.5 million, or 42 percent, for the first three
months of 2009, as compared to the 2008 period. Salaries and benefits
increased $1.6 million primarily due to the addition of 159 average full-time
equivalent staff, mostly due to the IBT acquisition, and normal merit
increases. Pension expenses increased $0.8 million as a result of market
value declines in the portfolio and the addition of IBT retained staff.
Salaries and benefits were positively affected by reduced accruals for
incentives in anticipation of decreased earnings performance for 2009.
Occupancy, equipment and data processing costs increased through the
integration of eight new branches from the IBT merger. Other significant
factors affecting noninterest expense increases include FDIC insurance
premiums, core deposit intangible amortization, amortization of affordable
housing partnerships and higher legal/consulting costs associated with
troubled loans. The efficiency ratio, which measures recurring noninterest
expense to noninterest income, excluding security gains (losses), plus
recurring net interest income on a fully taxable equivalent basis, was 53
percent and 44 percent for the quarters ended March 31, 2009 and March 31,
2008, respectively.

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. Expenses associated with this preferred stock were
$1.3 million for the period ending March 31, 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 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
March 31, 2009 were 9.73 percent, 14.82 percent, 11.58 percent and 6.46
percent, respectively.

S&T Bancorp, Inc. declared a common stock quarterly dividend of $0.31 per
share on March 16, 2009 which is payable on April 24, 2009 to shareholders of
record as of March 31, 2009. This dividend represents a 5.8 percent projected
annual yield utilizing the March 31, 2009 closing market price of $21.21.

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 $4.3 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. 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
March 31, 2009
(Dollars in thousands, except per share data)

2008
-------------------------------
March June September
For the period: 1Q 2Q 3Q
------- ------- -------
Interest Income $50,458 $50,433 $57,416
Interest Expense 19,909 16,791 18,245
------ ------ ------
Net Interest Income 30,549 33,642 39,171
Taxable Equivalent
Adjustment 1,148 1,227 1,385
----- ----- -----
Net Interest Income (FTE) 31,697 34,869 40,556

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

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

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

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

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

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

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

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

Per Common Share Data:

Shares Outstanding at End of
Period 24,615,136 27,408,633 27,588,510
Average Shares Outstanding -
Diluted 24,680,484 25,503,920 27,602,216
Net Income (Loss) - Diluted $0.60 $0.54 $0.57
Dividends Declared $0.31 $0.31 $0.31
Common Book Value (6) $14.18 $16.00 $16.34
Tangible Common Book Value (5) $12.04 $9.52 $9.97
Market Value $32.17 $29.06 $36.83

2008 2009
-------- -------
December March
For the period: 4Q 1Q
------ -----

Interest Income $57,811 $50,424
Interest Expense 17,226 14,279
------ ------
Net Interest Income 40,585 36,145
Taxable Equivalent
Adjustment 1,388 1,334
----- -----
Net Interest Income (FTE) 41,973 37,479

Provision For Loan Losses 5,561 21,389
----- ------
Net Interest Income
After Provisions (FTE) 36,412 16,090
------ ------

Security Gains (Losses), Net (92) (1,246)

Service Charges and Fees 3,567 3,056
Wealth Management 2,081 1,743
Insurance 1,984 1,862
Other 2,168 3,601
----- -----

Total Noninterest Income 9,800 10,262

Salaries and Employee Benefits 10,409 11,655
Occupancy and Equip. Expense, Net 2,838 3,082
Data Processing Expense 1,384 1,468
FDIC Expense 129 1,941
Other 6,363 7,292
----- -----

Total Noninterest Expense 21,123 25,438
------ ------

Income (Loss) Before Taxes 24,997 (332)
Taxable Equivalent Adjustment 1,388 1,334
Applicable Income Taxes 7,809 176
----- ---

Net Income (Loss) 15,800 (1,842)
Preferred Stock Dividends - 1,283
--- -----
Net Income (Loss) Available to
Common Shareholders $15,800 ($3,125)
======= =======

Per Common Share Data:

Shares Outstanding at End of
Period 27,632,928 27,637,317
Average Shares Outstanding -
Diluted 27,722,550 27,637,292
Net Income (Loss) - Diluted $0.57 ($0.11)
Dividends Declared $0.31 $0.31
Common Book Value (6) $16.24 $16.01
Tangible Common Book Value (5) $9.90 $9.68
Market Value $35.50 $21.21

S&T Bancorp, Inc.
Consolidated Selected Financial Data
March 31, 2009
(Dollars in thousands)
2008
-------------------------------
March June September
Asset Quality Data 1Q 2Q 3Q
------------------ ------- ------- -------
Nonaccrual Loans and Nonperforming Loans $23,212 $15,959 $32,793
Assets acquired through foreclosure
or repossession 630 1,884 1,111
Nonperforming Assets 23,842 17,843 33,904
Allowance for Loan Losses 35,717 38,796 43,235
Nonperforming Loans / Loans 0.81% 0.46% 0.92%
Allowance for Loan Losses / Loans 1.25% 1.12% 1.21%
Allowance for Loan Losses /
Nonperforming Loans 154% 243% 132%
Net Loan Charge-offs (Recoveries) (94) 2,224 1,717
Net Loan Charge-offs (Recoveries)
(annualized)/Average Loans -0.01% 0.29% 0.20%

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

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

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

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

2008 2009
---- ----
December March
Asset Quality Data 4Q 1Q
------------------ ------- -------

Nonaccrual Loans and Nonperforming Loans $42,466 $92,047
Assets acquired through foreclosure
or repossession 851 1,452
Nonperforming Assets 43,317 93,499
Allowance for Loan Losses 42,689 59,847
Nonperforming Loans / Loans 1.19% 2.62%
Allowance for Loan Losses / Loans 1.20% 1.70%
Allowance for Loan Losses /
Nonperforming Loans 101% 65%
Net Loan Charge-offs (Recoveries) 6,107 4,231
Net Loan Charge-offs (Recoveries)
(annualized)/Average Loans 0.68% 0.49%

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

Assets $4,438,368 $4,314,540
Earning Assets 4,044,970 3,948,774
Securities 476,255 429,919
Loans, Gross 3,568,716 3,518,855
Total Deposits 3,228,416 3,244,197
Non-Interest Bearing Deposits 600,282 625,325
NOW, Money Market & Savings 1,334,324 1,264,407
CD's $100,000 and over 377,748 386,441
Other Time Deposits 916,062 968,024
Short-term borrowings 421,894 225,898
Long-term Debt 270,950 232,282
Shareholders' Equity 448,694 547,276

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

Assets $4,419,465 $4,360,166
Earning Assets 4,042,118 3,980,258
Securities 490,754 445,150
Loans, Gross 3,551,179 3,534,064
Deposits 3,205,711 3,251,587
Shareholders' Equity 458,600 542,240

S&T Bancorp, Inc.
Consolidated Selected Financial Data
March 31, 2009
(Dollars in thousands, except per share data)

2008 2009
--------------------------------- -----
Profitability Ratios March June September December March
(annualized) 1Q 2Q 3Q 4Q 1Q
-------------------- ---- ---- ---- ---- -----

Return on Average Assets 1.75% 1.51% 1.44% 1.42% -0.29%
Return on Average Tangible
Common Assets (5) 1.78% 1.54% 1.50% 1.48% -0.30%
Return on Average
Shareholders' Equity 17.27% 14.78% 13.93% 13.71% -2.34%
Return on Average Tangible
Common Equity (5) 20.37% 19.17% 22.95% 22.19% -4.53%
Yield on Earning Assets (FTE) 6.49% 6.05% 5.92% 5.83% 5.27%
Cost of Interest Bearing Funds 3.10% 2.43% 2.23% 2.06% 1.82%
Net Interest Margin (FTE)(4) 3.99% 4.08% 4.07% 4.13% 3.82%
Efficiency Ratio (FTE)(1) 44.23% 50.11% 43.67% 40.80% 53.28%

Capitalization Ratios
---------------------

Dividends Paid to Net Income 51.23% 55.05% 54.17% 54.13% -273.87%
Shareholders' Equity to
Assets (Period End) 10.08% 10.07% 10.10% 10.11% 12.68%
Leverage Ratio (2) 9.28% 8.05% 7.15% 7.30% 9.73%
Risk Based Capital -
Tier I (3) 10.29% 7.99% 8.23% 8.65% 11.58%
Risk Based Capital -
Tier II (3) 12.46% 11.12% 11.40% 11.82% 14.82%
Tangible Common Equity/
Tangible Assets (5) 8.69% 6.25% 6.42% 6.41% 6.46%

Definitions:
------------
(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) Excludes goodwill, other intangible assets and preferred stock from
the calculation.
(6) Excludes preferred stock from the calculation.

SOURCE S&T Bancorp, Inc.

Robert E. Rout, Chief Administrative and Chief Financial Officer of S&T
Bancorp, Inc., +1-724-465-1487