S&T Bancorp Inc. divulged it has totaled about $3 million in expenses to complete its acquisition of Integrity Banchares Inc. of Camp Hill.
The Indiana, Pa., company, the parent company of what is now Integrity Bank — a division of S&T Bank, said its first-quarter expenses related to the merger with Integrity were about $2.3 million, according to its first-quarter earnings report. That is in addition to the $700,000 it spent in the fourth quarter of 2014 for the merger it announced in late October.
The merger closed on March 4, but the full integration of the companies isn’t expected to happen until May. That likely will result in additional expenses — administrative, severance and contract termination fees — revealed in the company’s second-quarter earnings report in July.
S&T pegged the final value of the merger at $172 million after originally being priced at about $155 million.
Even with the added expenses, roughly one month of the acquisition already helped S&T’s bottom line. The company reported net interest income jumped from $35.6 million in the first quarter of 2014 and $38.1 million in the fourth quarter to $40.3 million in the first quarter of 2015. The jump was “primarily related to the merger,” according to the earnings report. Integrity’s quarterly results were incorporated into S&T’s results starting March 4.
S&T’s assets jumped from $5 billion to $6 billion because of the merger.
Overall, the company’s earnings dropped in the first quarter to $12.8 million, or 41 cents per diluted share, compared to $14 million, or 47 cents per diluted share, in the first quarter of 2014.
The company said 5 cents per diluted share was because of the merger expenses.
S&T trades its shares on the NASDAQ exchange at the ticker symbol STBA.