Though its loan-loss provision quadrupled from a year earlier, to $6.2 million, S&T Bancorp Inc. in Indiana, Pa., said Tuesday that its third-quarter net income was flat, at $15.7 million.
Earnings per share fell 10%, to 57 cents, missing the average of analyst estimates by 4 cents, according to Thomson Reuters.
The $4.5 billion-asset company noted that it issued 2.8 million additional shares in the second quarter as partial payment for its purchase of IBT Bancorp Inc.
In its provision, S&T earmarked $5.4 million of specific reserves for three commercial real estate loans worth $26.1 million that were put into nonperforming status during the quarter.
"The current economic crisis continues to present tremendous growth opportunities for banks like S&T as evidenced by our record loan growth and net interest income performance," Todd D. Brice, its president and chief executive officer, said in a press release. "However, our third-quarter performance was significantly affected by increases to the allowance for loan losses as a result of a tougher economic period for all business."
Analysts cited a 3.2% increase in total loans from the second quarter and contained expenses as highlights of the third-quarter report.
S&T's efficiency ratio was an "enviable" 45%, Richard D. Weiss, an analyst at Janney Montgomery Scott LLC, wrote in a research note.
Shares of S&T dropped 4.4% Tuesday, to close at $32.02.
