Standard AVB Financial Corp. Announces Fourth Quarter and Calendar Year Earnings and a Quarterly Dividend Payment
Standard AVB Financial Corp. (STND) announced a Q4 2020 net income of $2.0 million ($0.44 per share), down from $2.1 million ($0.46 per share) in Q4 2019, affected by $522,000 in merger-related expenses. Excluding these costs, net income would have been $2.5 million ($0.53 per share). For the full year 2020, earnings dropped to $6.5 million ($1.43 per share) from $8.8 million ($1.91 per share) in 2019. The company recorded a 60.6% increase in the allowance for loan losses amid economic uncertainty. A quarterly dividend of $0.221 per share was declared, payable on February 22, 2021.
- Declared a quarterly cash dividend of $0.221 per share.
- Record commercial and residential loan production in 2020.
- Total assets increased by 6.8% to $1.1 billion.
- Net income declined by 5.3% to $2.0 million in Q4 2020.
- Annual net income decreased by 26.4% to $6.5 million for 2020.
- Increased provision for loan losses of 60.6% due to pandemic impacts.
MONROEVILLE, Pa., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Standard AVB Financial Corp. (the “Company”) - (NASDAQ: STND), the holding company for Standard Bank, PaSB, announced earnings for the quarter ended December 31, 2020 of
The Company announced earnings for the year ended December 31, 2020 of
The Company’s annualized return on average assets and average equity were
The Company’s board of directors declared a quarterly cash dividend of
On September 25, 2020, the Company and Dollar Mutual Bancorp jointly announced the signing of a definitive merger agreement pursuant to which Dollar Mutual Bancorp will acquire the Company in an all cash transaction for an aggregate purchase price of
Andrew W. Hasley, President & CEO, stated, “While we continue to operate in an environment of significant economic uncertainty, we have produced positive financial results for our shareholders. The historically low interest rate environment has resulted in the contraction of our net interest margin; however, we remain committed to controlling expenses and enhancing earnings from sources other than net interest income to continue to produce positive results. The Bank had record commercial and residential loan production in 2020 as our customer relationship management team continued to care for our existing and expanding customer base. Throughout this time, we have continued to prudently manage our credit as well as interest rate risk. Conservative positioning on both fronts will result in a more resilient business model as the long term impact of the COVID-19 pandemic remains unclear.
The Company ended December with an increased capacity to absorb credit losses, an abundance of liquidity and regulatory capital well in excess of the proscribed minimums. Taking all of this into consideration, the Company made the decision to maintain our dividend at this time.”
CONSOLIDATED BALANCE SHEET & ASSET QUALITY OVERVIEW
Total assets at December 31, 2020 increased
Total deposits at December 31, 2020 increased by
Stockholders’ equity increased by
Non-performing loans at December 31, 2020 were
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), was signed into law on March 27, 2020, and provided for over
The Company has continued to provide assistance to individuals and small business clients directly impacted by the COVID-19 pandemic by allowing borrowers to defer loan payments. As of December 31, 2020, the Bank had payment deferrals for 8 commercial loans totaling
It is anticipated that certain industries will continue to suffer losses as a result of the COVID-19 pandemic. The Bank’s loan portfolio consists of commercial real estate, commercial business and residential loans that may be primarily impacted. The largest commercial loan concentrations are to the lessors of residential properties and the lessors of nonresidential properties representing
OPERATING RESULTS OVERVIEW
Net interest income was
A provision for loan losses of
Noninterest income totaled
Noninterest expenses totaled
Income tax expense totaled
Standard AVB Financial Corp., with total assets of
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. In addition, the COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened or remain reopened. 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.
| CONTACTS: | ||
| Andrew W. Hasley President Chief Executive Officer 412.856.0363 | Timothy K. Zimmerman Senior Executive Vice President Chief Operating Officer 412.856.0363 | Susan A. Parente Executive Vice President Chief Financial Officer 412.856.0363 |
| Standard AVB Financial Corp. | ||||||||||||||||
| Financial Highlights | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| OPERATIONS DATA: | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Interest and Dividend Income | $ | 8,744 | $ | 9,329 | $ | 35,315 | $ | 37,704 | ||||||||
| Interest Expense | 1,536 | 2,363 | 7,387 | 9,262 | ||||||||||||
| Net Interest Income | 7,208 | 6,966 | 27,928 | 28,442 | ||||||||||||
| Provision for Loan Losses | 520 | 181 | 3,058 | 725 | ||||||||||||
| Net Interest Income after Provision for Loan Losses | 6,688 | 6,785 | 24,870 | 27,717 | ||||||||||||
| Noninterest Income | 1,757 | 1,333 | 5,611 | 5,052 | ||||||||||||
| Noninterest Expenses | 5,928 | 5,542 | 22,604 | 21,625 | ||||||||||||
| Income before Income Tax Expense | 2,517 | 2,576 | 7,877 | 11,144 | ||||||||||||
| Income Tax Expense | 483 | 501 | 1,359 | 2,338 | ||||||||||||
| Net Income | $ | 2,034 | $ | 2,075 | $ | 6,518 | $ | 8,806 | ||||||||
| Earnings Per Share - Basic | $ | 0.44 | $ | 0.46 | $ | 1.43 | $ | 1.91 | ||||||||
| Earnings Per Share - Diluted | $ | 0.44 | $ | 0.45 | $ | 1.41 | $ | 1.90 | ||||||||
| Annualized Return on Average Assets | 0.76 | % | 0.83 | % | 0.63 | % | 0.90 | % | ||||||||
| Average Assets | $ | 1,058,973 | $ | 990,310 | $ | 1,031,734 | $ | 983,042 | ||||||||
| Annualized Return on Average Equity | 5.59 | % | 5.84 | % | 4.56 | % | 6.28 | % | ||||||||
| Average Equity | $ | 144,321 | $ | 140,901 | $ | 142,984 | $ | 140,189 | ||||||||
| Efficiency Ratio | 61.43 | % | 65.42 | % | 62.19 | % | 62.91 | % | ||||||||
| Net Interest Spread | 2.65 | % | 2.67 | % | 2.62 | % | 2.77 | % | ||||||||
| Net Interest Margin | 2.88 | % | 2.99 | % | 2.89 | % | 3.10 | % | ||||||||
| Annualized Noninterest Expense to Average Assets | 2.22 | % | 2.22 | % | 2.19 | % | 2.20 | % | ||||||||
| FINANCIAL CONDITION DATA: | December 31, | December 31, | ||||||||||||||
| 2020 | 2019 | |||||||||||||||
| Total Assets | $ | 1,051,174 | $ | 984,387 | ||||||||||||
| Cash and Cash Equivalents | 50,513 | 32,427 | ||||||||||||||
| Investment Securities | 188,279 | 164,566 | ||||||||||||||
| Loans Receivable, Net | 734,752 | 712,965 | ||||||||||||||
| Deposits | 809,240 | 734,453 | ||||||||||||||
| Borrowed Funds | 92,979 | 102,838 | ||||||||||||||
| Total Stockholders' Equity | 145,537 | 141,848 | ||||||||||||||
| Book Value Per Share | $ | 30.49 | $ | 30.25 | ||||||||||||
| Tangible Book Value Per Share | $ | 24.78 | $ | 24.34 | ||||||||||||
| Allowance for Loan Losses | $ | 7,841 | $ | 4,882 | ||||||||||||
| Non-Performing Loans | $ | 4,965 | $ | 2,716 | ||||||||||||
| Allowance for Loan Losses to Total Loans | 1.06 | % | 0.68 | % | ||||||||||||
| Allowance for Loan Losses to Non-Performing Loans | 157.93 | % | 179.75 | % | ||||||||||||
| Non-Performing Assets to Total Assets | 0.52 | % | 0.32 | % | ||||||||||||
| Non-Performing Loans to Total Loans | 0.67 | % | 0.38 | % | ||||||||||||
STANDARD AVB FINANCIAL CORP.
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
EXPLANATION OF OUR USE OF NON-GAAP MEASURES
In addition to the results of operations presented in accordance with generally accepted accounting principles (GAAP), our management uses, and this exhibit contains, certain non-GAAP financial measures. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance, our business and performance trends, and facilitate comparisons with the performance of others in the financial service industry.
Although we believe these non-GAAP financial measures enhance investors’ understanding of our business and performance, they should not be considered an alternative to GAAP. The reconciliation of these non-GAAP financial measures from GAAP to non-GAAP follows.
| Standard AVB Financial Corp. | |||||||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures | |||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
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FAQ
What were the Q4 2020 earnings for Standard AVB Financial Corp. (STND)?
Standard AVB Financial Corp. reported Q4 2020 earnings of $2.0 million, or $0.44 per share.
How did the annual earnings for Standard AVB Financial Corp. (STND) change from 2019 to 2020?
Annual earnings for Standard AVB Financial Corp. declined from $8.8 million in 2019 to $6.5 million in 2020.
What impact did merger-related expenses have on Standard AVB Financial Corp.'s (STND) earnings?
Merger-related expenses of $522,000 in Q4 2020 reduced net income significantly; excluding these, net income would have risen to $2.5 million.
When will the dividend for Standard AVB Financial Corp. (STND) be paid?
The dividend of $0.221 per share will be paid on February 22, 2021, to stockholders of record as of February 8, 2021.
What were the total assets for Standard AVB Financial Corp. (STND) at the end of 2020?
Total assets for Standard AVB Financial Corp. increased to $1.1 billion at the end of December 2020.
STND
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