MONROEVILLE, Pa., Jan. 26, 2017 /PRNewswire/ -- Standard Financial Corp. (the "Company") - (OTCQX: STND), the holding company for Standard Bank PaSB, today announced earnings for the quarter ended December 31, 2016 of $559,000 or $0.23 per share. Net income for the first quarter was significantly impacted by merger related expenses of $307,000 ($288,000 after tax) in connection with the pending merger with Allegheny Valley Bancorp, Inc. Excluding the after tax impact of the merger related expenses, net income would have been $847,000 or $0.35 per share for the quarter ended December 31, 2016 compared to $866,000 or $0.34 per share for the quarter ended December 31, 2015. The Company's annualized return on average assets and average equity were 0.46% and 3.06%, respectively, (0.69% and 4.64%, respectively, excluding the merger related expenses) for the quarter ended December 31, 2016 compared to 0.74% and 4.63%, respectively, for the quarter ended December 31, 2015.
The Company's board of directors declared a quarterly cash dividend to $0.11 per share of the Company's common stock. The dividend will be payable to stockholders of record as of February 2, 2017 and will be paid on February 16, 2017.
On August 29, 2016 the Company and Allegheny Valley Bancorp, Inc., jointly announced the signing of a definitive merger agreement that will result in a combined community banking franchise with total assets of nearly $1.0 billion and 18 branches located throughout Southwestern Pennsylvania and Western Maryland.
Timothy K. Zimmerman, President & CEO, stated, "We are pleased to report another quarter of showing consistent growth in loans. Our results also reflect the historically low general market interest rates and flat yield curve and the impact on net interest income and the net interest margin. As economic conditions change we remain committed to loan growth, good asset quality and control of noninterest expenses."
Excluding the impact of the merger, net income for the quarter ended December 31, 2016 decreased $19,000 or 2.2% compared to the same quarter in the prior year. Primary changes included a provision for loan losses of $40,000, higher noninterest expenses of $29,000 or 1.1% and higher income tax expense of $41,000 or 11.0% partially offset by higher net interest income of $43,000 or 1.4% and higher noninterest income of $48,000 or 7.4% compared to the same quarter in the prior year.
Net interest income was $3.2 million for the three months ended December 31, 2016 and 2015, respectively. A higher average balance of loans was slightly offset by a decrease in the yield on assets.
A provision for loan losses of $40,000 was recorded for the three months ended December 31, 2016, compared to no provision recorded for the three months ended December 31, 2015. Non-performing loans at December 31, 2016 were $1.1 million or 0.29% of total loans compared to $1.3 million or 0.36% of total loans at December 31, 2015. The allowance for loan losses to non-performing loans was 344.1% at December 31, 2016 compared to 299.4% at December 31, 2015.
Noninterest income totaled $700,000 for the quarter ended December 31, 2016 compared to $652,000 for the quarter ended December 31, 2015. The increase for the quarter was due primarily to higher gains on loans and securities during the current quarter.
Noninterest expenses totaled $2.6 million for the quarter ended December 31, 2016 reflecting an increase of $29,000 from the quarter ended December 31, 2015. The increase was due mainly to higher real estate owned expenses and higher premises and occupancy costs, partially offset by lower personnel related costs and lower federal deposit insurance expense.
Standard Financial Corp., with total assets of $488.0 million at December 31, 2016, is the parent company of Standard Bank, a Pennsylvania chartered savings bank which operates nine 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. 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.
Standard Financial Corp.
Financial Highlights
(Dollars in thousands, except per share data)
(Unaudited)
OPERATIONS DATA: Three Months Ended December 31,
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2016 2015
---- ----
Interest and
Dividend Income $4,097 $4,007
Interest Expense 879 832
--- ---
Net Interest
Income 3,218 3,175
Provision for
Loan Losses 40 -
--- ---
Net Interest
Income after
Provision for
Loan Losses 3,178 3,175
Noninterest
Income 700 652
Noninterest
Expenses 2,618 2,589
Merger Expenses 307 -
--- ---
Income before
Income Tax
Expense 953 1,238
Income Tax
Expense 394 372
--- ---
Net Income $559 $866
==== ====
Earnings Per
Share -Basic $0.23 $0.34
Earnings Per
Share -Diluted $0.23 $0.33
Annualized
Return on
Average Assets 0.46% 0.74%
Average Assets $490,984 $465,160
Annualized
Return on
Average Equity 3.06% 4.63%
Average Equity $73,038 $74,857
Net Interest
Spread 2.69% 2.79%
Net Interest
Margin 2.82% 2.93%
FINANCIAL
CONDITION DATA: December 31, September 30,
----------------
2016 2016
---- ----
Total Assets $487,996 $495,219
Cash and Cash
Equivalents 10,520 18,161
Investment
Securities 61,180 64,403
Loans
Receivable, Net 381,532 378,080
Deposits 362,187 368,634
Borrowed Funds 50,010 50,820
Total
Stockholders'
Equity 72,990 73,012
Book Value Per
Share $28.00 $28.24
Tangible Book
Value Per Share $24.64 $24.85
Allowance for
Loan Losses $3,837 $3,800
Non-Performing
Loans $1,115 $1,056
Allowance for
Loan Losses to
Total Loans 1.00% 1.00%
Allowance for
Loan Losses to
Non-Performing
Loans 344.1% 359.8%
Non-Performing
Assets to Total
Assets 0.28% 0.27%
Non-Performing
Loans to Total
Loans 0.29% 0.28%
Additional financial information is available at www.standardbankpa.com.
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SOURCE Standard Financial Corp.
