S&T Bancorp Inc. of Indiana, Pa., says cutting its dividend by roughly half will help it protect its capital and eventually jettison its government investment.
The $4.3 billion-asset S&T said Tuesday that it would pay a dividend 15 cents a share for this quarter; it previously paid 31 cents.
S&T said the reduction would save $18 million of capital annually, positioning it to lend more as the economy recovers.
It also said the savings could help it repay the $108.7 million infusion it received in January through the Treasury Department's Troubled Asset Relief Program.
