S&T Bancorp in Indiana, Pa., reported higher second-quarter earnings driven by loan growth and a credit for its loan-loss provision.

The $4.8 billion-asset company's profit increased 4.4%, to $14.7 million, from a year earlier. It earned 49 cents per share, up from 47 cents, S&T said Tuesday.

Net interest income increased more than 6%, to nearly $37 million, driven by loan growth and lower interest expense. Total loans increased 8%, to $3.7 billion, as the company's commercial loans rose 10% to $2.7 billion, while consumer loans totaled $978 million, up 3.2% from a year earlier. Interest expense fell by almost 24%, primarily on lower costs tied borrowings and junior subordinated debt securities. S&T’s net interest margin increased five basis points, to 3.56%.

Asset quality also improved. Total nonperforming loans fell 60%, to $14.9 million due to improvements in the performance of both commercial and consumer loans. As a result of net recoveries and improved asset quality, the company recorded a $1.1 million credit for its loan-loss provision, compared with a $1 million charge a year earlier, S&T said.

Noninterest income fell 8.5%, to $11.8 million, primarily from a 71% drop in mortgage banking income. Noninterest expense rose roughly 6%, to $30.2 million, as salaries and employee benefits increased 7%, to $15.8 million.

Total assets increased nearly 6%, to $4.8 billion, from a year earlier. Total deposits were up by roughly 6%, to $3.9 billion, driven by higher certificates of deposit and savings accounts.

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