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8-K - FORM 8-K - Standard AVB Financial Corp. | l42462e8vk.htm |
Exhibit 99.1
CONTACTS: | ||||
Timothy K. Zimmerman | ||||
President & Chief Executive Officer | ||||
412.856.0363 | ||||
RELEASE DATE:
|
Colleen M. Brown | |||
April 21, 2011
|
Chief Financial Officer | |||
412.856.0363 |
STANDARD FINANCIAL CORP. ANNOUNCES
SECOND QUARTER EARNINGS
SECOND QUARTER EARNINGS
Monroeville, Pennsylvania April 21, 2011 Standard Financial Corp., (the Company)
(NasdaqCM: STND), the holding company for Standard Bank, PaSB, today announced earnings for the
quarter ended March 31, 2011 of $828,000 or $0.26 per share compared to $684,000 for the quarter
ended March 31, 2010, a 21.1% increase. The Companys annualized return on average assets and
average equity were 0.77% and 4.41%, respectively, for the quarter ended March 31, 2011 compared to
0.69% and 6.30%, respectively, for the quarter ended March 31, 2010.
For the six month period ended March 31, 2011, net income was $846,000 or $0.26 per share compared
to $1.5 million for the six months ended March 31, 2010. The Companys 2011 earnings were
significantly impacted by a $1.4 million one-time contribution to Standard Charitable Foundation
($908,000 after tax impact). This contribution represented $1.2 million or 3.5% of the stock
issued in connection with the Companys mutual to stock conversion on October 6, 2010 and $200,000
in cash. Excluding the after tax impact of the contribution, operating earnings would have been
$1.8 million or $0.53 per share for the six months ended March 31, 2011 compared to $1.5 million
for the same period in the prior year, representing a 14.0% increase. Annualized return on average
assets and average equity were 0.39% and 2.25%, respectively, (0.81% and 4.67%, respectively,
excluding the one-time charitable foundation contribution) for the six months ended March 31, 2011.
The comparable ratios for the six months ended March 31, 2010 were 0.79% and 7.14%, respectively.
Timothy K. Zimmerman, President & CEO, noted, We are pleased with our operating earnings which
improved primarily due to higher net interest income. Although non-performing loans decreased
during the quarter, a higher loan loss provision was recorded reflecting the weak and uncertain
economic environment.
Net income for the quarter ended March 31, 2011 increased $144,000 compared to the prior year
quarter. The increase was primarily the result of an increase in net interest income of $483,000
or 16.5% partially offset by increases of $125,000 in the provision for loan losses and $186,000 in
non-interest expenses for the quarter ended March 31, 2011 compared to the prior year quarter. Net
interest income increased as a result of higher interest earning assets and a lower cost of funds.
Excluding the one-time contribution to Standard Charitable Foundation, operating earnings for the
six months ended March 31, 2011 increased $215,000 compared to the same period in the prior year.
The increase was primarily the result of an increase in net interest income of $936,000 or 16.2%
partially offset by increases of $346,000 in the provision for loan losses and $507,000 in
non-interest expenses for the six month period ended March 31, 2011 compared to the same period in
the prior year. Net interest income increased as a result of higher interest earning assets due
mainly to proceeds received in the stock conversion that closed on October 6, 2010 and a lower cost
of funds.
The provision for loan losses was $425,000 for the current quarter compared to $300,000 for the
quarter ended March 31, 2010 and $775,000 for the six months ended March 31, 2011 compared to
$429,000 for the six months ended March 31, 2010. Non-performing loans at March 31, 2011 were $2.9
million or 0.97% of total loans compared to $3.7 million or 1.26% of total loans at December 31,
2010 and $3.9 million or 1.37% of total loans at September 30, 2010.
Total non-interest expenses were $2.4 million for the quarter ended March 31, 2011 compared to $2.2
million for the quarter ended March 31, 2010. The $186,000, or 8.6%, increase was due mainly to
higher personnel related costs and other operating expenses, a portion of which were due to
operating as a public company. Excluding the one-time charitable contribution, total non-interest
expenses increased $507,000 or 12.2% to $4.7 million for the six months ended March 31, 2011 from
$4.2 million for the six months ended March 31, 2010. The six month increases were primarily in
personnel related costs and other operating expenses consistent with the quarter to quarter
increases noted above.
Total assets were $435.6 million at March 31, 2011 compared to $435.1 million at September 30,
2010.
Standard Financial Corp. is the parent company of Standard Bank, a Pennsylvania chartered savings
bank which operates ten offices serving individuals and small to mid-sized businesses in Allegheny,
Westmoreland and Bedford Counties in Pennsylvania and Allegany County in Maryland. Standard Bank
is a Member of the FDIC and an Equal Housing Lender.
This news release may contain a number of forward-looking statements, as that term is defined in
the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject
to risks and uncertainties which could cause actual results to differ materially from those
currently anticipated due to a number of factors, including, but not limited to, factors discussed
in documents filed by the Company with the Securities and Exchange Commission from time to time.
The Company undertakes no obligation to update these forward-looking statements to reflect events
or circumstances that occur after the date on which such statements were made.
(More)
Standard Financial Corp.
Financial Highlights
(Dollars in thousands, except per share data)
(Unaudited)
Financial Highlights
(Dollars in thousands, except per share data)
(Unaudited)
OPERATIONS DATA:
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest and Dividend Income |
$ | 4,643 | $ | 4,551 | $ | 9,294 | $ | 9,160 | ||||||||
Interest Expense |
1,232 | 1,623 | 2,571 | 3,373 | ||||||||||||
Net Interest Income |
3,411 | 2,928 | 6,723 | 5,787 | ||||||||||||
Provision for Loan Losses |
425 | 300 | 775 | 429 | ||||||||||||
Net Interest Income after Provision for Loan Losses |
2,986 | 2,628 | 5,948 | 5,358 | ||||||||||||
Noninterest Income |
535 | 555 | 1,152 | 1,151 | ||||||||||||
Contribution to Standard Charitable Foundation |
| | 1,376 | | ||||||||||||
Noninterest Expenses |
2,361 | 2,175 | 4,676 | 4,169 | ||||||||||||
Income before Income Tax Expense |
1,160 | 1,008 | 1,048 | 2,340 | ||||||||||||
Income Tax Expense |
332 | 324 | 202 | 801 | ||||||||||||
Net Income |
$ | 828 | $ | 684 | $ | 846 | $ | 1,539 | ||||||||
Earnings Per Share (EPS) |
$ | 0.26 | Not Applicable | $ | 0.26 | Not Applicable | ||||||||||
Annualized Return on Average Assets (ROA) |
0.77 | % | 0.69 | % | 0.39 | % | 0.79 | % | ||||||||
Annualized Return on Average Equity (ROE) |
4.41 | % | 6.30 | % | 2.25 | % | 7.14 | % | ||||||||
Net Interest Spread |
3.21 | % | 3.14 | % | 3.13 | % | 3.11 | % | ||||||||
Net Interest Margin |
3.38 | % | 3.22 | % | 3.31 | % | 3.20 | % |
FINANCIAL CONDITION DATA:
March 31, | September 30, | |||||||
2011 | 2010 | |||||||
Total Assets |
$ | 435,648 | $ | 435,103 | ||||
Cash and Cash Equivalents |
12,230 | 38,988 | ||||||
Total Investment Securities |
99,892 | 77,537 | ||||||
Loans Receivable, Net |
291,666 | 286,066 | ||||||
Deposits |
313,455 | 316,217 | ||||||
Borrowed Funds |
43,279 | 41,249 | ||||||
Total Stockholders Equity |
75,606 | 45,334 | ||||||
Book Value Per Share |
$ | 21.74 | Not Applicable | |||||
Tangible Book Value Per Share |
$ | 18.99 | Not Applicable | |||||
Allowance for Loan Losses to Total
Loans |
1.53 | % | 1.38 | % | ||||
Non-Performing Assets to Total
Assets |
0.83 | % | 1.10 | % | ||||
Non-Performing Loans to Total Loans |
0.97 | % | 1.37 | % |
Although operating earnings are not a measure of performance calculated in accordance with U.S.
generally accepted accounting principles (GAAP), we believe that operating earnings are an
important indication of our ability to generate earnings through our fundamental banking business.
Operating earnings exclude the effects of certain items that are unusual or non-recurring. We
believe that our operating earnings provide useful supplemental information to both management
and investors in evaluating the Companys financial results.
Operating earnings should not be considered in isolation or as a substitute for net income, cash flows
from operating activities or other income or cash flow statement data calculated in accordance with
GAAP. Additionally, the method used to calculate our operating earnings may differ from that of other
companies reporting measures with similar names.
Reconciliations of the Companys GAAP net income and operating earnings for the six months ended
March 31, 2011 and 2010 are presented below.
Standard Financial Corp.
Reconciliation of GAAP Net Income and Operating Earnings
(Dollars in thousands, except per share data)
(Unaudited)
Reconciliation of GAAP Net Income and Operating Earnings
(Dollars in thousands, except per share data)
(Unaudited)
OPERATIONS DATA:
Six Months Ended March 31, | ||||||||
2011 | 2010 | |||||||
GAAP Net Income |
$ | 846 | $ | 1,539 | ||||
Adjustments to GAAP Net Income |
||||||||
Contribution to Standard Charitable Foundation |
1,376 | | ||||||
Tax effect |
(468 | ) | | |||||
Operating Earnings |
$ | 1,754 | $ | 1,539 | ||||
GAAP Earnings Per Share |
$ | 0.26 | Not Applicable | |||||
Adjustments to GAAP Earnings Per Share |
||||||||
Contribution to Standard Charitable Foundation, net of tax |
0.27 | |||||||
Operating Earnings Per Share |
$ | 0.53 | ||||||