S&T Bancorp, Inc. (STBA), a holding company for the S&T Bank, Monday reported a drop in fourth quarter profit hurt by higher provision for loan losses, charges and lower net interest income.
For the fourth quarter, net income available to common shareholders decreased to $7.65 million or $0.28 per share from $15.80 million or $0.57 per share in the year-ago quarter. Net income for the quarter was $9.19 million.
On average, eight analysts polled by Thomson Reuters expected earnings of $0.24 per share for the quarter. Analysts' estimate typically excludes one-time items.
Todd Brice, President and chief executive officer, commented, "The economic events of 2009 presented previously unknown performance challenges and credit quality stresses that significantly affected our earnings this year."
Quarterly results included investment security losses amounting to $5.1 million, other-than temporary impairment charges of $5.3 million, allowances for loan losses of $59.6 million, an increment from $42.7 million in the prior year, and an increased provision for loan losses amounting to $10.6 million from $5.6 million in the year-ago quarter. Results also reflects net charge-offs of $11.7 million.
Net interest income, on a fully taxable equivalent basis, decreased 10% to $37.73 million from $41.97 million in the year-earlier quarter. Total non-interest income was $11.37 million, up from $9.80 million in the same quarter last year. Street expected revenues of $48.14 million for the quarter.
Net interest margin on a fully taxable equivalent basis was 3.94%, down from 4.13% in the year-earlier quarter.
Interest expense jumped to $17.23 million from $10.67 million and total non-interest expenses increased to $25.09 million from $21.12 million in the year-earlier quarter.
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.
For full year 2009, net income available to common shareholders plummeted to $2.04 million or $0.07 per share from $60.20 million or $2.28 per share a year ago. Net interest income increased to $151.18 million from $149.09 million, and total non-interest income rose to $43.67 million from $39.10 million in the prior year. The Street expected earnings of $0.04 per share on revenues of $189.64 million for the year.
STBA is currently trading at $18.49, down $0.55 or 2.89%, on a volume of 0.16 million shares.
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