S&T Bancorp Inc. in Indiana, Pa., said Wednesday that it was revising its fourth-quarter and full-year 2010 results to reflect a higher loan-loss provision.
After issuing a press release Jan. 31, the $4.1 billion-asset company said it determined that a modification of a participation loan was not properly recorded. As a result, S&T more than doubled its fourth-quarter provision, to $7.6 million. The higher provision reduced net income by 24%, to $8.7 million.
S&T said that its management identified "a material weakness" in the company's internal control over financial reporting related to the approval and recording of loan chargeoffs as of Dec. 31. S&T said it is taking the necessary steps to address the weakness.