S&T Bancorp Redeems all Preferred Stock Issued Under the U.S. Treasury's Capital Purchase Program

S&T Bancorp, Inc.

today announced that it has redeemed all of the preferred stock it sold to the U.S. Department of the Treasury in January of 2009 as part of the Capital Purchase Program. S&T's strong capital position allowed for the repurchase of the preferred shares without raising additional capital or debt. The redemption of the preferred stock was approved without any conditions from regulators. S&T used available cash to fund the repurchase of the outstanding preferred stock for $108.7 million and the payment of the final dividend of $0.3 million. The preferred stock was issued at a discount and the repurchase will accelerate the accretion of this discount. This will result in a one-time non-cash reduction in net income available to common shareholders of approximately $1.8 million, or $0.06 per common diluted share, for the fourth quarter of 2011. The repayment of the CPP funds will save S&T $6.2 million in preferred dividends and accretion, or approximately $0.22 per common diluted share, on an annual basis beginning in 2012. In conjunction with its participation in the CPP, S&T issued a warrant to the U.S. Treasury to purchase up to 517,012 shares of S&T Bancorp, Inc. common stock.