Attached files
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| 8-K - FORM 8-K - Standard AVB Financial Corp. | d305692d8k.htm |
 Annual Meeting
February 21, 2012
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Exhibit 99.1 |
 Forward-Looking Statements
3
2
This
presentation
contains
forward-looking
statements,
which
can
be
identified
by
the
use
of
words
such
as
“estimate,”
“project,”
“believe,”
“intend,”
“anticipate,”
“plan,”
“seek,”
“expect,”
“will,”
“may”
and words of similar meaning. These forward-looking statements
include, but are not limited to:
•
statements of our goals, intentions and expectations;
•
statements regarding our business plans, prospects, growth and operating
strategies; •
statements regarding the asset quality of our loan and investment
portfolios; and •
estimates of our risks and future costs and benefits.
These forward-looking statements are based on our current beliefs and
expectations and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of which
are beyond our control. In addition, these forward-looking
statements are subject to assumptions with respect to future business
strategies and decisions that are subject to change. We are under no
duty to and unless required under the federal securities laws, we do not
undertake any obligation to update any forward-looking
statements after the date of this report.
The following factors, among others, could cause actual results to differ
materially from the anticipated results or other expectations
expressed in the forward-looking statements:
•
general
economic
conditions,
either
nationally
or
in
our
market
areas,
that
are
worse
than
expected;
•
competition among depository and other financial institutions;
•
inflation and changes in the interest rate environment that reduce our
margins or reduce the fair value of financial instruments;
•
adverse changes in the securities markets;
•
changes
in
laws
or
government
regulations
or
policies
affecting
financial
institutions,
including
changes
in
regulatory
fees
and
capital requirements;
•
our
ability
to
enter
new
markets
successfully
and
capitalize
on
growth
opportunities;
•
our ability to successfully integrate acquired entities, if any;
•
changes in consumer spending, borrowing and savings habits;
•
changes
in
accounting
policies
and
practices,
as
may
be
adopted
by
the
bank
regulatory
agencies,
the
Financial
Accounting
Standards Board, the Securities and Exchange Commission and the Public
Company Accounting Oversight Board; •
changes in our organization, compensation and benefit plans;
•
changes in our financial condition or results of operations that reduce
capital available to pay dividends; and •
changes in the financial condition or future prospects of issuers of
securities that we own. Because of these and other uncertainties,
our actual future results may be materially different from the results indicated by these forward-
looking statements. |
 Company Overview
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 19
Overview of Standard Financial Corp.
4
Standard Bank, a Pennsylvania chartered savings bank organized in
1913, is the wholly owned subsidiary of Standard Financial Corp.
On October 6, 2010, Standard Financial Corp. completed its
mutual-to- stock conversion raising $34.8 million in gross
proceeds. Standard Financial Corp. trades on the NASDAQ Capital
Market under the symbol STND.
Standard Financial Corp. conducts its business from ten community
banking offices located in the Pennsylvania counties of Allegheny,
Westmoreland and Bedford and Allegany County, Maryland.
As of December 31, 2011, we had $437.3 million in total assets, $290.7
million in net loans, $324.4 million in deposits and $78.4 million
in stockholders’
equity. |
 6
Community Banking Office Locations
4785 Old William Penn Hwy.
Murrysville, PA
Executive Offices
2640 Monroeville Blvd.
Monroeville, PA
211 W. Main Street
Ligonier, PA
5
Headquarters
3945 Center Street
Hyndman, PA
200 N. Mechanic Street
Cumberland, MD
1275 National Hwy.
LaVale, MD
Banking Offices
659 W. Main Street
Mt. Pleasant, PA
2100 Summit Ridge Plaza
Mt. Pleasant, PA
100 Pittsburgh Street
Scottdale, PA
5150 Route 30
Greensburg, PA |
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Deposit Market Share
6
The population change
from 2000-2010 for
Westmoreland and
Allegheny Counties was
-2.04% and -4.75%,
respectively, compared
to 2.39% for
Pennsylvania and
10.59% for the United
States.
Median household
income for 2010 for
Westmoreland and
Allegheny Counties was
$48,485 and $51,369,
respectively, compared
to $52,723 for
Pennsylvania and
$54,442 for the United
States.
Source: SNL Financial.
Westmoreland, PA
2011
Rank
Institution (ST)
Type
Number
of
Branches
6/30/11 Total
Deposits in
Market ($000)
6/30/11 Total
Market
Share (%)
1
PNC Financial Services Group (PA)
Bank
22
1,804,063
26.59
2
First Commonwealth Financial (PA)
Bank
17
957,807
14.11
3
S&T Bancorp Inc. (PA)
Bank
11
766,958
11.30
4
RBS
Bank
18
740,482
10.91
5
F.N.B. Corp. (PA)
Bank
23
689,534
10.16
6
First Niagara Finl Group (NY)
Bank
9
382,344
5.63
7
Commercial National Financial (PA)
Bank
10
290,467
4.28
8
Dollar Bank FSB (PA)
Savings Inst
4
216,489
3.19
9
Standard Financial Corp (PA)
Thrift
6
201,718
2.97
10
Westmoreland FS&LA (PA)
Savings Inst
1
132,778
1.96
Total For Institutions In Market
143
6,785,788
Allegheny, PA
2011
Rank
Institution (ST)
Type
Number
of
Branches
6/30/11 Total
Deposits in
Market ($000)
6/30/11 Total
Market
Share (%)
1
PNC Financial Services Group (PA)
Bank
104
34,030,720
55.31
2
Bank of New York Mellon Corp. (NY)
Bank
2
8,575,399
13.94
3
RBS
Bank
78
4,262,827
6.93
4
Dollar Bank FSB (PA)
Savings Inst
28
2,772,554
4.51
5
First Niagara Finl Group (NY)
Bank
40
2,045,876
3.33
6
F.N.B. Corp. (PA)
Bank
50
1,674,370
2.72
7
TriState Capital Holdings Inc. (PA)
Bank HC
2
1,560,691
2.54
8
Huntington Bancshares Inc. (OH)
Bank
18
1,269,736
2.06
9
First Commonwealth Financial (PA)
Bank
34
1,118,452
1.82
10
Northwest Bancshares, Inc. (PA)
Thrift
17
680,589
1.11
25
Standard Financial Corp (PA)
Thrift
3
43,990
0.07
Total For Institutions In Market
461
61,523,048 |
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Deposit Market Share
7
The population change
from
2000-2010
for
Bedford
County, PA was -2.60%
and Allegany County, MD was
-0.42%, compared to
2.39%
for
Pennsylvania,
8.20% for Maryland and
10.59% for the United
States.
Median household income
for 2010 for Bedford
County, PA was $39,728
and Allegany County, MD was
$37,162 compared to $52,723
for Pennsylvania, $66,983 for
Maryland and $54,442 for the
United States.
Allegany, MD
2011
Rank
Institution (ST)
Type
Number
of
Branches
6/30/11 Total
Deposits in
Market ($000)
6/30/11 Total
Market
Share (%)
1
Susquehanna Bancshares Inc. (PA)
Bank
5
296,570
43.98
2
M&T Bank Corp. (NY)
Bank
6
158,563
23.52
3
First United Corp. (MD)
Bank
4
124,309
18.44
4
PNC Financial Services Group (PA)
Bank
3
50,338
7.47
5
Standard Financial Corp (PA)
Thrift
2
44,515
6.60
Total For Institutions In Market
20
674,295
Source: SNL Financial.
Bedford, PA
2011
Rank
Institution (ST)
Type
Number
of
Branches
6/30/11 Total
Deposits in
Market ($000)
6/30/11 Total
Market
Share (%)
1
Susquehanna Bancshares Inc. (PA)
Bank
5
170,599
23.72
2
F.N.B. Corp. (PA)
Bank
5
136,381
18.96
3
M&T Bank Corp. (NY)
Bank
3
103,182
14.35
4
First Commonwealth Financial (PA)
Bank
3
97,870
13.61
5
Hometown Bank of Pennsylvania (PA)
Comm'l Bank
2
90,743
12.62
6
Altoona First Savings Bank (PA)
Savings Bank
2
59,882
8.33
7
Standard Financial Corp (PA)
Thrift
1
24,618
3.42
8
Orbisonia Community Bncp Inc. (PA)
Bank HC
1
21,820
3.03
9
CBT Financial Corp. (PA)
Bank
1
14,033
1.95
10
Somerset Trust Holding Company (PA)
Bank
1
0
0.00
Total For Institutions In Market
24
719,128 |
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Fiscal 2011 Review
8
Through the stock offering we established the Standard Charitable
Foundation by making a one time contribution of $1.4
million. Donations from the foundation will benefit the
Bank’s communities for many years. We expect annual contributions to
approximate $90,000.
Net Income for fiscal 2011 was $2.4 million, or $3.3 million after
adjusting for the one
time
after
tax
impact
of
$0.9
million
to
fund
the
charitable
foundation,
which
was a 14% increase from fiscal 2010 of $2.9 million.
Solid Capital Base with Tangible Equity to Tangible Assets of 16.29% as
of 9/30/11. Asset
quality
continues
to
remain
strong
compared
to
peer
groups
and
industry
averages.
Despite difficult economic conditions and weak loan demand, we were able
to achieve both deposit and loan growth in fiscal 2011.
Reduction in borrowings of $9.8 million, or 23.8%, from $41.2 million at
fiscal year- end 2010 to $31.4 million at fiscal year-end
2011. On April 6, 2011, a new community banking office was
opened in Greensburg, PA. As of 9/30/11 deposits had grown
to approximately $2.0 million in a market which includes 29
offices of competing banks. |
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2012 Business Strategy
9
Our primary objective is to operate as a profitable,
community-oriented financial institution
serving customers in our market areas. We have sought to
accomplish this objective by adopting a business strategy that is
designed to maintain strong capital and high asset quality.
Our business strategy includes the following elements:
Increasing commercial real estate
lending, focusing on small and medium
sized businesses, while maintaining our conservative loan
underwriting standards.
Emphasizing deposit relationships by attracting new customers and
enhancing existing customer relationships.
Pursuing
future
expansion
and
acquisition
opportunities
with
the
capital
raised in the conversion, although we have no current arrangements or
agreements with respect to any such acquisitions.
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Financial Highlights
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Stable Asset Growth
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Dollars in millions
CAGR = Compound Annual Growth Rate.
$342.9
$354.0
$382.4
$435.1
$434.6
$437.3
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
9/30/07
9/30/08
9/30/09
9/30/10
09/30/11
12/31/11 |
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Total Loan Portfolio Growth
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Dollars in millions
48%
50%
49%
49%
49%
49%
25%
26%
28%
30%
30%
31%
17%
17%
17%
16%
16%
16%
5%
5%
5%
3%
4%
4%
$0.0
$25.0
$50.0
$75.0
$100.0
$125.0
$150.0
$175.0
$200.0
$225.0
$250.0
$275.0
$300.0
$325.0
9/30/07
9/30/08
9/30/09
9/30/10
09/30/11
12/31/11
Other
Construction
Commercial
Home Equity
Commercial RE
1-4 Family
Residential
$289.6
$246.1
$260.0
$290.1
$273.8
$295.0 |
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Credit Quality Trends
13
Peer consists of public banks and thrifts located in the Mid-Atlantic
region with Assets between $300M and $600M . Excludes
MHCs and Merger Targets. Non-Performing Loans / Total Loans
STND at 12/31/11: 1.30%
At
2007
2008
2009
2010
2011
12/31/11
NPAs / Total Assets (%)
0.26
0.51
0.61
1.10
1.24
1.17
NCOs / Average Loans (%)
0.02
0.10
0.17
0.10
0.37
0.68
Allowance / NPLs (%)
294.43
150.12
233.01
101.71
97.73
88.95
Allowance / Total Loans (%)
0.97
0.93
1.12
1.38
1.56
1.47
At September 30,
0.63%
0.49%
1.37%
1.62%
0.44%
0.67%
1.62%
1.71%
1.78%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
09/30/07
09/30/08
09/30/09
09/30/10
09/30/11
STND
Peer Median
0.33% |
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Deposit Growth
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Dollars in millions
47%
41%
38%
40%
42%
43%
29%
36%
42%
39%
35%
35%
24%
22%
20%
21%
23%
23%
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
9/30/07
9/30/08
9/30/09
9/30/10
09/30/11
12/31/11
Certificates of Deposit
Savings
Demand, NOW and Money Market
$320.3
$264.0
$254.6
$316.2
$286.9
$324.4 |
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Net Interest Margin
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In this difficult interest rate environment, we have been able to maintain
our net interest margin.
2.66%
2.98%
2.99%
3.25%
3.31%
3.26%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
FY
09/30/07
FY
09/30/08
FY
09/30/09
FY
09/30/10
FY
09/30/11
QTR
12/31/11 |
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Net Income
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Dollars in thousands
*Without net impact of one time contribution of $908,000 to Standard
Charitable Foundation. $2,424
$2,060
$1,140
$2,144
$2,915
$831
$3,332*
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
FY
09/30/07
FY
09/30/08
FY
09/30/09
FY
09/30/10
FY
09/30/11
QTR
12/31/11 |
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Performance Measures
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Return on Average Assets
*Without net impact of one-time contribution to Standard Charitable
Foundation. Peer consists of public banks and thrifts located in
the Mid-Atlantic region with Assets between $300M and $600M. Excludes MHCs and
Merger Targets.
0.56%
0.62%
0.33%
0.58%
0.73%
0.76%*
0.76%
0.83%
0.69%
0.67%
0.75%
0.86%
0.80%
0.0%
0.3%
0.5%
0.8%
1.0%
FY
09/30/07
FY
09/30/08
FY
09/30/09
FY
09/30/10
FY
09/30/11
QTR
12/31/11
STND
Peer Median |
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Performance Measures
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Return on Average Equity
*Without net impact of one-time contribution to Standard Charitable
Foundation. Peer consists of public banks and thrifts located in
the Mid-Atlantic region with Assets between $300M and $600M. Excludes MHCs and
Merger Targets.
3.18%
5.33%
2.86%
5.27%
6.64%
4.38%*
4.25%
9.23%
8.20%
8.04%
8.39%
8.92%
7.70%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
FY
09/30/07
FY
09/30/08
FY
09/30/09
FY
09/30/10
FY
09/30/11
QTR
12/31/11
STND
Peer Median |
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Performance Measures –
cont.
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Efficiency Ratio
Non Interest Expense / Average Assets
Peer consists of public banks and thrifts
located in the Mid-Atlantic region with
Assets between $300M and $600M.
Excludes MHCs and Merger Targets.
2.43%
2.37%
2.36%
2.20%
2.48%
2.21%
2.74%
2.76%
2.86%
2.79%
2.82%
2.91%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
FY
09/30/07
FY
09/30/08
FY
09/30/09
FY
09/30/10
FY
09/30/11
QTR
12/31/11
STND
Peer Median
75%
79%
73%
62%
68%
62%
68%
66%
69%
66%
67%
71%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
FY
09/30/07
FY
09/30/08
FY
09/30/09
FY
09/30/10
FY
09/30/11
QTR
12/31/11
STND
Peer Median |
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Stockholders’
Equity
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Stock Offering
10/6/10
Strong
Capital
Position
Total Equity ($000)
Tangible Equity / Tangible Assets
Dollars in millions
$39.4
$38.7
$42.2
$45.3
$78.7
$78.4
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
09/30/07
09/30/08
09/30/09
09/30/10
09/30/11
12/31/11
8.8%
8.4%
8.7%
8.4%
16.3%
16.1%
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
09/30/07
09/30/08
09/30/09
09/30/10
09/30/11
12/31/11 |
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Building Shareholder Value
21
•
Announced our first
quarterly dividend
on 10/20/11 of
$0.045 per share.
•
Announced stock
repurchase program
of 10% in October
2011. As of
12/31/11, 55,000
shares had been
repurchased.
•
Since our IPO
(10/6/10) we have
increased our book
value by 6.7% and
our tangible book
value by 7.6%.
Book Value
Tangible Book Value
$21.46
$21.74
$22.25
$22.63
$22.89
$0.00
$4.00
$8.00
$12.00
$16.00
$20.00
$24.00
$28.00
12/31/10
03/31/11
06/30/11
09/30/11
12/31/11
$18.71
$18.99
$19.52
$19.91
$20.14
$0.00
$4.00
$8.00
$12.00
$16.00
$20.00
$24.00
$28.00
12/31/10
03/31/11
06/30/11
09/30/11
12/31/11 |
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Market Statistics
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Dividend History
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Data as of February 1, 2012
Source: SNL Financial
Current Div Yield
1.2%
Description:
Common stock, $0.01 par value
Announce Date
Ex-Dividend Date
Pay Date
Amount
Frequency
1/19/2012
1/31/2012
2/15/2012
$0.0450
Quarterly
10/20/2011
10/31/2011
11/15/2011
$0.0450
Quarterly
Common Equity Dividends |
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STND Stock Price Performance
24
Since IPO –
October 6, 2010 at $10.00 Per Share
Data as of February 15, 2012
Source: SNL Financial
3.1%
15.8%
60.0%
0.80
0.90
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
STND
NASDAQ Bank
S&P 500
STND Price
on 2/15/12 –
$16.00 |
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Fiscal 2012 Outlook
25
Emphasize relationship banking with our customers
Remain focused on asset quality
Prudent loan growth
Continue to manage the interest rate margin
Manage capital through dividends & repurchases
Continue to add value for Standard Shareholders
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Questions? |