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Three weeks after completing an acquisition for one small Pennsylvania bank, S&T Bancorp in Indiana, Pa., has struck a deal for another.
March 30
S&T Bancorp's second-quarter profit fell 36% from the same quarter last year, to $8.6 million, as gains in fee income could not offset narrowing margins and an uptick in problem loans. Earnings per share fell 38%, to 30 cents, or seven cents below the estimates of analysts surveyed by Thomson Reuters.
The $4.5 billion-asset S&T (STBA), based in Indiana, Pa., said Monday that its noninterest income climbed nearly 12% year over year, due to gains in fees from mortgage banking and wealth management. Interest income declined year over year, however, and its net interest margin fell 28 basis points, to 3.57%, due to continued low interest rates and what the company said was "an unfavorable asset mix."
More notably, the company said that nonperforming assets rose 6% from first quarter and 3% from the same time last year, to $72 million, and that chargeoffs increased 71% year over year, to $8.5 million. Its $7 million provision for loan losses was $2.3 million lower than its provision in the first quarter but was still up more than 500% from the same period last year.
The results included S&T's March acquisition of Mainline Bancorp of Edensburg, Pa. The company also has a
S&T's shares were down 3% in late trading Monday, to $17.67.
