Standard Financial Corp. Announces A Quarterly Dividend Payment And First Quarter Earnings

MONROEVILLE, Pa., Jan. 26, 2017

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.