S&T Bancorp (STBA) 8-K S&T Bancorp, Inc. Announces First Quarter Results

Exhibit 99.1

FOR IMMEDIATE RELEASE	Contact: Mark Kochvar
April 26, 2011	Chief Financial Officer
	724-465-4826

S&T Bancorp, Inc. Announces First Quarter Results

Indiana, Pennsylvania – S&T Bancorp, Inc. (NASDAQ: STBA), a full-service financial institution with office locations in 10 Pennsylvania counties, has announced its first quarter earnings.

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

• First quarter earnings were $4.7 million with diluted earnings per common share of $0.17 compared to $0.31 in the fourth quarter of 2010 and $0.35 in the first quarter of 2010.

• Nonperforming assets increased to 2.67% of total loans plus OREO compared to 2.07% in the fourth quarter of 2010 and down from 2.94% in the first quarter of 2010.

• Net charge-offs were $0.4 million compared to $12.6 million in the fourth quarter of 2010 and $1.0 million in the first quarter of 2010.

“Asset quality proved to be challenging this quarter with the addition of two large nonperforming relationships resulting in $6.0 million of specific loan loss reserve. Due to the nature of our commercial loan portfolio, S&T’s earnings may fluctuate as we work our way through these challenging economic times. We remain focused on resolving these loans with the most positive economic results for the Bank,” said Brice. “At the same time, S&T remains well capitalized and solidly positioned to grow as the regional economy continues to recover.”

S&T Bancorp, Inc. Announces First Quarter Results (cont.)

Net Interest Income

Net interest income on a fully taxable equivalent (FTE) basis for the first quarter of 2011 was $35.9 million compared to $37.4 million in the fourth quarter of 2010 and $37.1 million in the first quarter of 2010. Net interest income has decreased from the fourth quarter due to declines in average loan balances and rate and two fewer days in the first quarter versus the fourth quarter of 2010. Average balances on loans decreased $36.2 million and the average interest rate on loans decreased to 4.92% from 5.02% in the fourth quarter of 2010. Net interest margin (FTE) was 3.92% in the first quarter compared to 4.06% in the fourth quarter of 2010 and 4.00% in the first quarter of 2010. The decrease in net interest margin (FTE) of 14 basis points is primarily a result of loan repricings, maturities and pay downs and higher excess funds held at the Federal Reserve. Positively impacting net interest margin (FTE) was core deposit repricings at the end of 2010.

Asset Quality

Nonperforming assets increased to $88.5 million or 2.67% of total loans plus other real estate owned (“OREO”) compared to $69.7 million or 2.07% in the fourth quarter of 2010 and down from $99.9 million or 2.94% in the first quarter of 2010. Included in nonperforming assets were troubled debt restructurings (TDRs) of $34.9 million. The increase in nonperforming assets relates to the aforementioned two large relationships that became impaired during the first quarter. The first is a $12.1 million CRE relationship in the hospitality sector that has been experiencing declining cash flows. A specific reserve of $3.1 million has been established. The second is a $6.7 million C&I relationship for which a $2.9 million specific reserve has been established.

The provision for loan losses was $10.6 million for the first quarter compared to $7.7 million for the fourth quarter of 2010 and $4.4 million in the first quarter of 2010. The provision was elevated due to the aforementioned specific reserves of $6.0 million and a $5.4 million increase in the general reserve as a result of an increase in substandard assets. Net charge-offs were $0.4 million for the first quarter compared to $12.6 million in the fourth quarter of 2010 and $1.0 million in the first quarter of 2010.

S&T Bancorp, Inc. Announces First Quarter Results (cont.)

The allowance for loan losses at March 31, 2011 was $61.7 million or 1.87% of total loans, as compared to $51.4 million or 1.53% at December 31, 2010 and $63.0 million or 1.85% at March 31, 2010. The allowance to nonperforming loans was 76% at March 31, 2011, 80% at December 31, 2010 and 65% at March 31, 2010. Included in the allowance is $8.6 million of specific reserves compared to $3.6 million in the fourth quarter of 2010 and $20.3 million in the first quarter of 2010.

Noninterest Income

Noninterest income was $11.0 million compared to $12.0 million in the fourth quarter of 2010 and $11.2 million in the first quarter of 2010. The decrease from the prior quarter primarily related to a decrease of $0.6 million in mortgage banking activities as a result of decreased volume in loan sales due to rising interest rates. Service charges and fees and other fee income were down for the quarter including $0.2 million for NSF fees and $0.2 million of letter of credit fees. Insurance activities made a positive contribution during the quarter including a $0.3 million increase in income primarily related to annual bonus commissions received.

Noninterest Expense

Noninterest expense for the first quarter was $27.4 million compared to $27.0 million for the fourth quarter of 2010 and $27.9 million for the first quarter of 2010. The increase primarily relates to higher payroll taxes of $0.8 million due to timing and elevated consulting fees of $0.6 million. Positively impacting noninterest expense for the quarter was $0.6 million of decreased expenses related to OREO compared to the fourth quarter and a $0.3 million reduction in legal expenses.

S&T Bancorp, Inc. Announces First Quarter Results (cont.)

Financial Condition

Total assets were $4.1 billion at March 31, 2011, December 31, 2010 and March 31, 2010. Total loans were $3.3 billion at March 31, 2011 compared to $3.4 billion at December 31, 2010 and March 31, 2010. Total loans have decreased $59.6 million from the prior quarter including $31.3 million in consumer and $28.3 million in commercial. The decreases primarily relate to higher than expected pay downs during the quarter and soft loan demand within our market.

Total deposits were $3.3 billion at March 31, 2011, December 31, 2010 and March 31, 2010. Noninterest-bearing demand deposits remain strong at $802.7 million as of March 31, 2011 compared to $765.8 million at December 31, 2010 and $709.4 million at March 31, 2010. Securities increased $42.4 million to $352.8 compared to $310.4 as of December 31, 2010 and $352.3 million at March 31, 2010. Security purchases made during the quarter are intended to deploy cash from loan pay downs and to improve asset liquidity.

S&T’s capital ratios continue to improve and exceed the “well capitalized” thresholds of federal bank regulatory agencies with a tier 1 leverage ratio of 11.19%, tier 1 risk- based capital ratio of 13.54% and total risk-based capital ratio of 16.99%. The increase in capital ratios in the first quarter of 2011 is primarily attributable to a reduction in risk-weighted assets. S&T’s tangible common equity ratio was 7.70% compared to 7.61% for the fourth quarter of 2010 and 7.09% for the first quarter of 2010.

S&T Bancorp, Inc. Announces First Quarter Results (cont.)

About S&T Bancorp, Inc.

Headquartered in Indiana, PA, S&T Bancorp, Inc. operates 51 offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jefferson and Westmoreland counties. With assets of $4.1 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 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 consolidated 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.

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(in thousands, except per share data)

	2011		2010		2010
	First Quarter		Fourth Quarter		First Quarter
Income Statements
Interest Income	$	42,192	$	44,210	$	45,324
Interest Expense		7,320		7,876		9,410
Net Interest Income		34,872		36,334		35,914
Taxable Equivalent Adjustment		1,038		1,075		1,222
Net Interest Income (FTE)		35,910		37,409		37,136
Provision For Loan Losses		10,640		7,676		4,430
Net Interest Income After Provisions (FTE)		25,270		29,733		32,706
Security Gains (Losses), Net		13		11		153
Service Charges and Fees		2,404		2,602		2,971
Wealth Management		2,050		2,047		1,984
Insurance		2,132		1,855		2,368
Other		4,427		5,487		3,867
Total Noninterest Income		11,013		11,991		11,190
Salaries and Employee Benefits		13,320		12,452		12,565
Occupancy and Equipment Expense, Net		3,048		3,123		3,072
Data Processing Expense		1,504		1,544		1,603
FDIC Expense		1,226		1,367		1,301
Other		8,351		8,532		9,389
Total Noninterest Expense		27,449		27,018		27,930
Income Before Taxes		8,847		14,717		16,119
Taxable Equivalent Adjustment		1,038		1,075		1,222
Applicable Income Taxes		1,514		3,352		3,593
Net Income		6,295		10,290		11,304
Preferred Stock Dividends		1,555		1,553		1,547
Net Income Available to Common Shareholders	$	4,740	$	8,737	$	9,757
Per Common Share Data:
Shares Outstanding at End of Period		28,033,757		27,951,689		27,777,931
Average Shares Outstanding - Diluted		27,957,002		27,883,109		27,753,384
Diluted Earnings Per Share	$	0.17	$	0.31	$	0.35
Dividends Declared	$	0.15	$	0.15	$	0.15
Common Book Value	$	16.90	$	16.91	$	16.39
Tangible Common Book Value(1)	$	10.76	$	10.73	$	10.12
Market Value	$	21.57	$	22.59	$	20.90

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(in thousands)

	2011				2010				2010
	First Quarter				Fourth Quarter				First Quarter
Net Interest Margin (Quarterly Averages)
Assets
Loans - FTE	$	3,324,606	4.92	%	$	3,360,786	5.02	%	$	3,404,096	5.12	%
Securities/Other - FTE		384,796	3.02	%		296,270	3.77	%		352,862	4.06	%
Total Interest-earning Assets		3,709,402	4.72	%		3,657,056	4.92	%		3,756,958	5.02	%
Noninterest-earning Assets		378,012				460,073				380,522
Total Assets	$	4,087,414			$	4,117,129			$	4,137,480
Liabilities and Shareholders’ Equity
Now/Money Market/Savings	$	1,295,224	0.18	%	$	1,289,946	0.25	%	$	1,249,940	0.29	%
Certificates of Deposit		1,231,162	1.81	%		1,268,473	1.82	%		1,316,673	2.08	%
Borrowed funds < 1 year		42,582	0.14	%		48,121	0.11	%		132,300	0.28	%
Borrowed funds > 1 year		119,736	4.21	%		120,192	4.16	%		157,386	4.34	%
Total Interest-bearing Liabilities		2,688,704	1.10	%		2,726,732	1.15	%		2,856,299	1.34	%
Noninterest-bearing Liabilities
Demand Deposits		767,581				757,857				683,973
Shareholders’ Equity/Other		631,129				632,540				597,208
Total Noninterest-bearing Liabilities		1,398,710				1,390,397				1,281,181
Total Liabilities and Shareholders’ Equity	$	4,087,414			$	4,117,129			$	4,137,480
Net Yield on Interest-earning Assets			3.92	%			4.06	%			4.00	%
	2011				2010				2010
	First Quarter				Fourth Quarter				First Quarter
Balance Sheets (Period-End)
Assets
Cash	$	108,855			$	108,196			$	72,652
Securities		352,783				310,390				352,271
Loans, Net		3,242,658				3,312,540				3,335,380
Other Assets		385,758				383,213				375,464
Total Assets	$	4,090,054			$	4,114,339			$	4,135,767
Liabilities and Shareholders’ Equity
Noninterest-bearing Deposits	$	802,748			$	765,812			$	709,422
Interest-bearing Deposits		2,503,091				2,551,712				2,636,394
Short-term Borrowings		38,270				40,653				47,996
Long-term Debt		119,593				119,984				136,250
Other Liabilities		46,237				57,513				44,962
Shareholders’ Equity		580,115				578,665				560,743
Total Liabilities and Shareholders’ Equity	$	4,090,054			$	4,114,339			$	4,135,767

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(in thousands)

	2011					2010					2010
	First Quarter					Fourth Quarter					First Quarter
Loans (Period-End)
Consumer
Home Equity	$	436,357				$	441,096				$	457,178
Residential Mortgage		345,209					367,873					360,113
Installment		70,573					74,780					76,997
Construction		4,322					4,019					8,899
Total Consumer Loans		856,461					887,768					903,187
Commercial
Commercial Real Estate		1,488,700					1,494,202					1,422,761
Commercial & Industrial		713,683					722,359					715,178
Construction		245,477					259,598					357,277
Total Commercial Loans		2,447,860					2,476,159					2,495,216
Total Loans	$	3,304,321				$	3,363,927				$	3,398,403
	2011					2010					2010
	First Quarter					Fourth Quarter					First Quarter
			% NPL					% NPL					% NPL
Nonperforming Loans (NPL)
Consumer
Home Equity	$	1,858		0.43	%	$	1,432		0.32	%	$	1,618		0.35	%
Residential Mortgage		5,337		1.55	%		5,996		1.63	%		4,695		1.30	%
Installment		25		0.04	%		65		0.09	%		99		0.13	%
Construction		—		—			526		13.09	%		—		—
Total Consumer Loans		7,220		0.84	%		8,019		0.90	%	$	6,412		0.71	%
Commercial
Commercial Real Estate		57,189		3.84	%		44,310		2.97	%		66,138		4.65	%
Commercial & Industrial		9,081		1.27	%		3,567		0.49	%		3,356		0.47	%
Construction		7,356		3.00	%		7,987		3.08	%		20,884		5.85	%
Total Commercial Loans		73,626		3.01	%		55,864		2.26	%		90,378		3.62	%
Total Nonperforming Loans	$	80,846		2.45	%	$	63,883		1.90	%	$	96,790		2.85	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(in thousands)

	2011					2010					2010
	First Quarter					Fourth Quarter					First Quarter
Construction and Commercial Real Estate (CRE) PA vs. Out-of-state
Pennsylvania	$	1,375,688				$	1,390,635				$	1,425,369
Out-of-state		358,489					363,165					354,669
Total Construction and CRE PA vs. Out-of-state	$	1,734,177				$	1,753,800				$	1,780,038
	2011					2010					2010
	First Quarter					Fourth Quarter					First Quarter
			% NPL					% NPL					% NPL
Construction and CRE - NPL PA vs. Out-of-state
Pennsylvania	$	43,799		3.18	%	$	43,515		3.13	%	$	62,579		4.39	%
Out-of-state		20,746		5.79	%		8,782		2.42	%		24,443		6.89	%
Total Construction and CRE - NPL PA vs. Out-of-state	$	64,545		3.72	%	$	52,297		2.98	%	$	87,022		4.89	%
	2011					2010					2010
	First Quarter					Fourth Quarter					First Quarter
Construction and CRE by Type
Retail/Strip Malls	$	297,339				$	304,324				$	295,630
Residential Rental Properties		237,879					242,756					284,807
Offices		226,163					232,655					239,746
Hotels		194,543					192,954					175,870
Manufacturing/Industrial/Warehouse		117,857					118,791					131,854
Flex/Mixed Use		113,483					118,610					107,537
Healthcare/Education		108,472					95,029					99,632
Real Estate Development - Commercial		93,301					90,136					108,141
Real Estate Development - Residential		81,956					88,487					83,718
Miscellaneous		263,184					270,058					253,103
Total Construction and CRE by Type	$	1,734,177				$	1,753,800				$	1,780,038
	2011					2010					2010
	First Quarter					Fourth Quarter					First Quarter
			% NPL					% NPL					% NPL
Construction and CRE - NPL by Type
Retail/Strip Malls	$	3,031		1.02	%	$	3,176		1.04	%	$	4,373		1.48	%
Residential Rental Properties		10,971		4.61	%		11,087		4.57	%		19,975		7.01	%
Offices		2,768		1.22	%		2,720		1.17	%		1,296		0.54	%
Hotels		13,585		6.98	%		1,465		0.76	%		2,095		1.19	%
Manufacturing/Industrial/Warehouse		3,592		3.05	%		1,944		1.64	%		4,262		3.23	%
Flex/Mixed Use		2,388		2.10	%		2,740		2.31	%		6,046		5.62	%
Healthcare/Education		818		0.75	%		1,509		1.59	%		3,283		3.30	%
Real Estate Development - Commercial		5,968		6.40	%		5,525		6.13	%		10,652		9.85	%
Real Estate Development - Residential		6,073		7.41	%		6,693		7.56	%		9,043		10.80	%
Miscellaneous		15,351		5.83	%		15,438		5.72	%		25,997		10.27	%
Total Construction and CRE - NPL by Type	$	64,545		3.72	%	$	52,297		2.98	%	$	87,022		4.89	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(in thousands)

	2011		2010		2010
	First Quarter		Fourth Quarter		First Quarter
Commercial Credit Exposure Credit Risk Profile by Creditworthiness Category
Pass
Commercial Real Estate	$	1,250,149	$	1,297,242	$	1,182,387
Commercial & Industrial		610,750		619,011		623,323
Construction		201,984		221,492		301,665
Total Pass	$	2,062,883	$	2,137,745	$	2,107,375
Special Mention
Commercial Real Estate	$	98,780	$	86,653	$	131,603
Commercial & Industrial		57,460		76,158		68,889
Construction		10,534		16,308		25,758
Total Special Mention	$	166,774	$	179,119	$	226,250
Substandard
Commercial Real Estate	$	139,771	$	110,307	$	108,771
Commercial & Industrial		45,473		27,190		22,966
Construction		32,959		21,798		29,854
Total Substandard	$	218,203	$	159,295	$	161,591

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

(in thousands)

	2011			2010			2010
	First Quarter			Fourth Quarter			First Quarter
Asset Quality Data
Nonaccrual Loans and Nonperforming Loans	$	80,846		$	63,883		$	96,790
Assets Acquired through Foreclosure or Repossession		7,696			5,820			3,087
Nonperforming Assets		88,542			69,703			99,877
Troubled Debt Restructurings (nonaccrual)		34,943			32,779			—
Troubled Debt Restructurings (accruing)		3,310			2,139			—
Total Troubled Debt Restructurings		38,253			34,918			—
Allowance for Loan Losses		61,663			51,387			63,023
Nonperforming Loans / Loans		2.45	%		1.90	%		2.85	%
Nonperforming Assets / Loans plus OREO		2.67	%		2.07	%		2.94	%
Allowance for Loan Losses / Loans		1.87	%		1.53	%		1.85	%
Allowance for Loan Losses / Nonperforming Loans		76	%		80	%		65	%
Net Loan Charge-offs (Recoveries)		364			12,570			987
Net Loan Charge-offs (Recoveries) (Annualized) / Average Loans		0.04	%		1.48	%		0.12	%
Profitability Ratios (Annualized)
Common Return on Average Assets		0.47	%		0.84	%		0.96	%
Common Return on Average Tangible Assets (2)		0.49	%		0.88	%		1.00	%
Common Return on Average Equity		3.31	%		6.00	%		7.12	%
Common Return on Average Tangible Common Equity(3)		6.35	%		11.59	%		14.34	%
Efficiency Ratio (FTE)(4)		58.50	%		54.69	%		57.79	%
Capitalization Ratios
Dividends Paid to Net Income		88.46	%		47.82	%		42.67	%
Common Equity / Assets		11.58	%		11.48	%		11.01	%
Tier 1 Leverage Ratio		11.19	%		11.07	%		10.51	%
Risk-Based Capital - Tier 1		13.54	%		13.28	%		12.40	%
Risk-Based Capital - Total		16.99	%		16.68	%		15.75	%
Tangible Common Equity / Tangible Assets (5)		7.70	%		7.61	%		7.09	%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

		2011			2010			2010
		First Quarter			Fourth Quarter			First Quarter
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
(1)	Tangible Common Book Value
	Common Book Value (GAAP Basis)	$	16.90		$	16.91		$	16.39
	Effect of Excluding Intangible Assets		(6.14	)		(6.18	)		(6.27	)
	Tangible Common Book Value	$	10.76		$	10.73		$	10.12
(2)	Common Return on Average Tangible Assets
	Common Return on Average Assets (GAAP Basis)		0.47	%		0.84	%		0.96	%
	Effect of Excluding Intangible Assets		0.02	%		0.04	%		0.04	%
	Common Return on Average Tangible Assets		0.49	%		0.88	%		1.00	%
(3)	Common Return on Average Tangible Common Equity
	Common Return on Average Common Equity (GAAP Basis)		3.31	%		6.00	%		7.12	%
	Effect of Excluding Intangible Assets		1.65	%		3.03	%		3.97	%
	Effect of Excluding Preferred Stock		1.39	%		2.56	%		3.25	%
	Common Return on Average Tangible Common Equity		6.35	%		11.59	%		14.34	%
(4)	Recurring noninterest expense divided by recurring noninterest income plus net interest income, on a fully taxable equivalent basis.
(5)	Tangible Common Equity / Tangible Assets
	Common Equity / Assets (GAAP Basis)		11.58	%		11.48	%		11.01	%
	Effect of Excluding Intangible Assets		-3.88	%		-3.87	%		-3.92	%
	Tangible Common Equity / Tangible Assets		7.70	%		7.61	%		7.09	%