##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended December 31, 2010.
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For
the transition period from  to .
 Commission File No. 001-34893
 Standard Financial Corp.
 (Exact name of registrant as specified in its charter)
 Maryland
(State or other jurisdiction of 
incorporation or organization)
    
    27-3100949
(I.R.S. Employer
Identification No.)
 2640 Monroeville Boulevard, Monroeville, Pennsylvania 15146
(Address of principal executive offices)
 412-856-0363
(Registrants telephone number, including area code)
 Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
 
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
(Do not check if a smaller reporting company)
    
    Smaller reporting company þ
 o þ




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##### 



Standard Financial Corp.
Table of Contents
 Part I  Financial InformationITEM 1. Financial Statements (Unaudited)
    
    
    1-19Consolidated Statements of Financial Condition as of December 31, 2010 and September 30, 2010Consolidated Statements of Income for the Three Months Ended December 31, 2010 and 2009Consolidated Statement of Changes in Stockholders Equity for the Three Months Ended December 31, 2010Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2010 and 2009Notes to Consolidated StatementsITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    19-25ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    26ITEM 4. Controls and Procedures
    
    
    26PART II  Other InformationITEM 1. Legal Proceedings
    
    
    26ITEM 1A. Risk Factors
    
    
    26ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    26ITEM 3. Defaults Upon Senior Securities
    
    
    26ITEM 4. (Removed and Reserved)
    
    
    26ITEM 5. Other Information
    
    
    26ITEM 6. Exhibits
    
    
    27Signatures
    
    
    28EX-31.1EX-31.2EX-32.1




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##### Table of Contents



PART I  FINANCIAL INFORMATION
 
 ITEM 1. Financial Statements
 Standard Financial Corp.
 
 Consolidated Statements of Financial Condition (Unaudited)
 (Dollars in thousands)
 December 31,
    
    
    September 30,2010
    
    
    2010ASSETSCash on hand and due from banks
    
    $
    2,001
    
    
    $
    2,052Interest-earning deposits in other institutions
    
    
    7,144
    
    
    
    36,936Cash and Cash Equivalents
    
    
    9,145
    
    
    
    38,988Investment securities available for sale, at fair value
    
    
    59,147
    
    
    
    54,948Mortgage-backed securities available for sale, at fair value
    
    
    40,930
    
    
    
    22,589Federal Home Loan Bank stock, at cost
    
    
    3,246
    
    
    
    3,416Loans receivable, net of allowance for loan losses of
$4,181 and $3,989
    
    
    290,254
    
    
    
    286,066Loans held for sale
    
    
    
    
    
    
    461Foreclosed real estate
    
    
    940
    
    
    
    884Office properties and equipment, at cost, less accumulated
depreciation and amortization
    
    
    3,874
    
    
    
    3,847Bank-owned life insurance
    
    
    9,508
    
    
    
    9,419Goodwill
    
    
    8,769
    
    
    
    8,769Core deposit intangible
    
    
    813
    
    
    
    855Prepaid federal deposit insurance
    
    
    1,071
    
    
    
    1,174Accrued interest and other assets
    
    
    3,817
    
    
    
    3,687TOTAL ASSETS
    
    $
    431,514
    
    
    $
    435,103LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesDeposits:Demand, regular and club accounts
    
    $
    187,868
    
    
    $
    190,517Certificate accounts
    
    
    124,227
    
    
    
    125,700Total Deposits
    
    
    312,095
    
    
    
    316,217Federal Home Loan Bank advances
    
    
    37,789
    
    
    
    37,805Securities sold under agreements to repurchase
    
    
    4,250
    
    
    
    3,444Advance deposits by borrowers for taxes and insurance
    
    
    112
    
    
    
    93Stock subscriptions outstanding
    
    
    
    
    
    
    29,461Accrued interest and other expenses
    
    
    2,626
    
    
    
    2,749TOTAL LIABILITIES
    
    
    356,872
    
    
    
    389,769Stockholders EquityCommon Stock, $0.01 par value per share, 40,000,000 shares authorized,
3,478,173 shares issued as of December 31, 2010
    
    
    35
    
    
    
    Paid-in-capital
    
    
    33,352
    
    
    
    Unearned Employee Stock Ownership Plan (ESOP) shares
    
    
    (2,912
    )
    
    
    Retained earnings
    
    
    44,069
    
    
    
    44,051Accumulated other comprehensive income
    
    
    98
    
    
    
    1,283TOTAL STOCKHOLDERS EQUITY
    
    
    74,642
    
    
    
    45,334TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    431,514
    
    
    $
    435,103
  1




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##### Table of Contents



Standard Financial Corp.
 
 Consolidated Statements of Income (Unaudited)
 (Dollars in thousands, except per share data)
 Three Months EndedDecember 31,
    
    
    December 31,2010
    
    
    2009Interest and Dividend IncomeLoans, including fees
    
    $
    3,983
    
    
    $
    4,018Mortgage-backed securities
    
    
    279
    
    
    
    259Investments:Taxable
    
    
    238
    
    
    
    217Tax-exempt
    
    
    140
    
    
    
    106Interest-earning deposits
    
    
    11
    
    
    
    9Total Interest and Dividend Income
    
    
    4,651
    
    
    
    4,609Interest ExpenseDeposits
    
    
    1,024
    
    
    
    1,242Securities sold under agreements to repurchase
    
    
    6
    
    
    
    8Federal Home Loan Bank advances
    
    
    309
    
    
    
    500Total Interest Expense
    
    
    1,339
    
    
    
    1,750Net Interest Income
    
    
    3,312
    
    
    
    2,859Provision for Loan Losses
    
    
    350
    
    
    
    129Net Interest Income after Provision for Loan Losses
    
    
    2,962
    
    
    
    2,730Noninterest IncomeService charges
    
    
    423
    
    
    
    434Earnings on bank-owned life insurance
    
    
    98
    
    
    
    96Net securities gains
    
    
    2
    
    
    
    Net loan sale gains
    
    
    49
    
    
    
    1Annuity and mutual fund fees
    
    
    36
    
    
    
    57Other income
    
    
    9
    
    
    
    8Total Noninterest Income
    
    
    617
    
    
    
    596Noninterest ExpensesCompensation and employee benefits
    
    
    1,371
    
    
    
    1,131Data processing
    
    
    91
    
    
    
    99Premises and occupancy costs
    
    
    226
    
    
    
    218Core deposit amortization
    
    
    42
    
    
    
    42Automatic teller machine expense
    
    
    76
    
    
    
    68Federal deposit insurance
    
    
    111
    
    
    
    108Contribution to Standard Charitable Foundation
    
    
    1,376
    
    
    
    Other operating expenses
    
    
    398
    
    
    
    328Total Noninterest Expenses
    
    
    3,691
    
    
    
    1,994(Loss) Income before Income Tax (Benefit) Expense
    
    
    (112
    )
    
    
    1,332Income Tax (Benefit) ExpenseFederal
    
    
    (128
    )
    
    
    427State
    
    
    (2
    )
    
    
    50Total Income Tax (Benefit) Expense
    
    
    (130
    )
    
    
    477Net Income
    
    $
    18
    
    
    $
    855Earnings Per Share (since inception October 6, 2010):Basic earnings per common share
    
    $
    
    
    
    $
    N/ADiluted earnings per common share
    
    $
    
    
    
    $
    N/A
  2




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##### Table of Contents



Standard Financial Corp.
 
 Consolidated Statement of Changes in Stockholders Equity (Unaudited)
 (Dollars in thousands)
 AccumulatedUnearned
    
    
    
    
    
    
    Other
    
    
    TotalCommon
    
    
    Paid-In
    
    
    ESOP
    
    
    Retained
    
    
    Comprehensive
    
    
    StockholdersStock
    
    
    Capital
    
    
    Shares
    
    
    Earnings
    
    
    Income (Loss)
    
    
    EquityBalance, September 30, 2010
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    44,051
    
    
    $
    1,283
    
    
    $
    45,334Comprehensive loss:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    18Net change in unrealized loss on
securities available for sale,
net of reclassification
adjustment, net of taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,185
    )
    
    
    (1,185
    )Total Comprehensive Loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    (1,185
    )
    
    
    (1,167
    )Issuance of common stock
(3,478,173 shares)
    
    
    35
    
    
    
    33,340
    
    
    
    (2,950
    )
    
    
    
    
    
    
    
    
    
    
    30,425Compensation expense on ESOP
    
    
    
    
    
    
    12
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    50Balance, December 31, 2010
    
    $
    35
    
    
    $
    33,352
    
    
    $
    (2,912
    )
    
    $
    44,069
    
    
    $
    98
    
    
    $
    74,642
  3




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Standard Financial Corp.
 
 Consolidated Statements of Cash Flows (Unaudited)
 (Dollars in thousands)
 Three Months EndedDecember 31,
    
    
    December 31,2010
    
    
    2009Cash Flows from Operating ActivitiesNet income
    
    $
    18
    
    
    $
    855Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation and amortization
    
    
    95
    
    
    
    107Provision for loan losses
    
    
    350
    
    
    
    129Amortization of core deposit intangible
    
    
    42
    
    
    
    42Net amortization of premium/discount on securities
    
    
    93
    
    
    
    79Net gain on securities
    
    
    (2
    )
    
    
    Origination of loans held for sale
    
    
    (1,800
    )
    
    
    (75
    )Proceeds from sale of loans held for sale
    
    
    2,310
    
    
    
    76Gain on sale of loans held for sale
    
    
    (49
    )
    
    
    (1
    )Compensation expense on ESOP
    
    
    50
    
    
    
    Stock contribution to Charitable Foundation
    
    
    1,176
    
    
    
    Deferred income taxes
    
    
    (468
    )
    
    
    Decrease in accrued interest and other assets
    
    
    148
    
    
    
    62Decrease (increase) in prepaid Federal deposit
insurance
    
    
    103
    
    
    
    (1,476
    )Earnings on bank-owned life insurance
    
    
    (98
    )
    
    
    (96
    )(Decrease) increase in accrued interest payable
    
    
    (11
    )
    
    
    1Decrease in other accrued expenses
    
    
    (150
    )
    
    
    (46
    )Increase in accrued income taxes payable
    
    
    138
    
    
    
    477Other, net
    
    
    8
    
    
    
    11Net Cash Provided by Operating Activities
    
    
    1,953
    
    
    
    145Cash Flows from Investing ActivitiesNet increase in loans
    
    
    (4,594
    )
    
    
    (4,888
    )Purchases of investment securities available for sale
    
    
    (14,896
    )
    
    
    (4,000
    )Purchases of mortgage-backed securities available for sale
    
    
    (21,080
    )
    
    
    Proceeds from maturities/principal repayments/calls of:Investment securities available for sale
    
    
    9,363
    
    
    
    2,667Mortgage-backed securities available for sale
    
    
    2,182
    
    
    
    2,036Proceeds from sales of investment securities available for sale
    
    
    4
    
    
    
    Redemption of Federal Home Loan Bank stock
    
    
    170
    
    
    
    Proceeds from sales of foreclosed real estate
    
    
    
    
    
    
    144Net purchases of office properties and equipment
    
    
    (122
    )
    
    
    (143
    )Net Cash Used in Investing Activities
    
    
    (28,973
    )
    
    
    (4,184
    )Cash Flows from Financing ActivitiesNet (decrease) increase in demand, regular and club accounts
    
    
    (1,736
    )
    
    
    4,796Net (decrease) increase in certificate accounts
    
    
    (1,185
    )
    
    
    5,686Net increase (decrease) in securities sold under agreements to repurchase
    
    
    806
    
    
    
    (544
    )Additional stock proceeds less conversion expenses
    
    
    457
    
    
    
    Purchase of ESOP shares
    
    
    (1,168
    )
    
    
    Repayments of Federal Home Loan Bank advances
    
    
    (16
    )
    
    
    (15
    )Increase (decrease) in advance deposits by borrowers for taxes and insurance
    
    
    19
    
    
    
    (185
    )Net Cash (Used) Provided by Financing Activities
    
    
    (2,823
    )
    
    
    9,738Net (Decrease) Increase in Cash and Cash Equivalents
    
    
    (29,843
    )
    
    
    5,699Cash and Cash Equivalents  Beginning
    
    
    38,988
    
    
    
    12,420Cash and Cash Equivalents  Ending
    
    $
    9,145
    
    
    $
    18,119Supplementary Cash Flows InformationInterest paid
    
    $
    1,350
    
    
    $
    1,749Income taxes paid
    
    $
    200
    
    
    $
    Supplementary Schedule of Noncash Investing and Financing ActivitiesForeclosed real estate acquired in settlement of loans
    
    $
    56
    
    
    $
    252Issuance of common stock from stock subscription payable
    
    $
    28,759
    
    
    $
    Issuance of common stock from use of customer deposit accounts
    
    $
    1,201
    
    
    $
    Issuance of common stock for ESOP plan
    
    $
    1,782
    
    
    $
    
  4




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##### Table of Contents



STANDARD FINANCIAL CORP.
 
 
 (1) Consolidation
  (2) Basis of Presentation
   (3) Comprehensive Income (Loss)
  Three Months EndedDecember 31,
    
    
    December 31,2010
    
    
    2009Unrealized holding loss on available-for-sale securities
    
    $
    (1,794
    )
    
    $
    (224
    )Reclassification adjustment for gains realized in income
    
    
    (2
    )
    
    
    Net Unrealized Loss
    
    
    (1,796
    )
    
    
    (224
    )Income tax benefit
    
    
    611
    
    
    
    76Net of Tax Amount
    
    $
    (1,185
    )
    
    $
    (148
    )
 5




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (4) Recent Accounting Pronouncements
 Fair Value Measurements and Disclosures
(Topic 820): Improving Disclosures about Fair Value Measurements
 Receivables (Topic 310): Disclosures about the
Credit Quality of Financing Receivables and the Allowance for Credit Losses.
  Accounting for Costs Associated with Acquiring
or Renewing Insurance Contracts
 When to Perform Step 2 of the Goodwill
Impairment Test for Reporting Units with Zero or Negative Carrying Amounts
 Disclosure of Supplementary Pro Forma
Information for Business Combinations
 6




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (4) Recent Accounting Pronouncements (Continued)
  (5) Investment Securities
  Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDecember 31, 2010:U.S. government and agency obligations due:Beyond 1 year but within 5 years
    
    $
    20,316
    
    
    $
    30
    
    
    $
    (67
    )
    
    $
    20,279Beyond 5 years but within 10 years
    
    
    5,500
    
    
    
    
    
    
    
    (144
    )
    
    
    5,356Corporate bonds due:Within 1 year
    
    
    1,509
    
    
    
    16
    
    
    
    
    
    
    
    1,525Beyond 1 year but within 5 years
    
    
    6,254
    
    
    
    13
    
    
    
    (68
    )
    
    
    6,199Municipal obligations due:Within 1 year
    
    
    4,267
    
    
    
    31
    
    
    
    
    
    
    
    4,298Beyond 1 year but within 5 years
    
    
    930
    
    
    
    14
    
    
    
    
    
    
    
    944Beyond 5 years but within 10 years
    
    
    8,716
    
    
    
    151
    
    
    
    (247
    )
    
    
    8,620Beyond 10 years
    
    
    10,646
    
    
    
    374
    
    
    
    (246
    )
    
    
    10,774Equity securities:CRA Investment Fund
    
    
    750
    
    
    
    
    
    
    
    (6
    )
    
    
    744Freddie Mac common stock
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    10Common stocks
    
    
    372
    
    
    
    38
    
    
    
    (12
    )
    
    
    398$
    59,270
    
    
    $
    667
    
    
    $
    (790
    )
    
    $
    59,147
 Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueSeptember 30, 2010:U.S. government and agency obligations due:Beyond 1 year but within 5 years
    
    $
    25,846
    
    
    $
    94
    
    
    $
    
    
    
    $
    25,940Beyond 5 years but within 10 years
    
    
    1,002
    
    
    
    7
    
    
    
    
    
    
    
    1,009Corporate bonds due:Within 1 year
    
    
    1,521
    
    
    
    27
    
    
    
    
    
    
    
    1,548Beyond 1 year but within 5 years
    
    
    6,255
    
    
    
    16
    
    
    
    (24
    )
    
    
    6,247Municipal obligations due:Within 1 year
    
    
    2,402
    
    
    
    13
    
    
    
    
    
    
    
    2,415Beyond 1 year but within 5 years
    
    
    4,203
    
    
    
    69
    
    
    
    
    
    
    
    4,272Beyond 5 years but within 10 years
    
    
    3,864
    
    
    
    232
    
    
    
    
    
    
    
    4,096Beyond 10 years
    
    
    7,568
    
    
    
    699
    
    
    
    
    
    
    
    8,267Equity securities:CRA Investment Fund
    
    
    750
    
    
    
    11
    
    
    
    
    
    
    
    761Freddie Mac common stock
    
    
    10
    
    
    
    
    
    
    
    
    
    
    
    10Common stocks
    
    
    374
    
    
    
    29
    
    
    
    (20
    )
    
    
    383$
    53,795
    
    
    $
    1,197
    
    
    $
    (44
    )
    
    $
    54,948
 7




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (5) Investment Securities (Continued)
   December 31, 2010Less than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesU.S. government and
agency obligations
    
    $
    10,789
    
    
    $
    (211
    )
    
    $
    
    
    
    $
    
    
    
    $
    10,789
    
    
    $
    (211
    )Corporate bonds
    
    
    5,932
    
    
    
    (68
    )
    
    
    
    
    
    
    
    
    
    
    5,932
    
    
    
    (68
    )Municipal obligations
    
    
    10,440
    
    
    
    (493
    )
    
    
    
    
    
    
    
    
    
    
    10,440
    
    
    
    (493
    )Equity securities
    
    
    744
    
    
    
    (6
    )
    
    
    68
    
    
    
    (12
    )
    
    
    812
    
    
    
    (18
    )Total TemporarilyImpaired Securities
    
    $
    27,905
    
    
    $
    (778
    )
    
    $
    68
    
    
    $
    (12
    )
    
    $
    27,973
    
    
    $
    (790
    )
 September 30, 2010Less than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesCorporate bonds
    
    $
    3,976
    
    
    $
    (24
    )
    
    $
    
    
    
    $
    
    
    
    $
    3,976
    
    
    $
    (24
    )Equity securities
    
    
    
    
    
    
    
    
    
    
    60
    
    
    
    (20
    )
    
    
    60
    
    
    
    (20
    )Total TemporarilyImpaired Securities
    
    $
    3,976
    
    
    $
    (24
    )
    
    $
    60
    
    
    $
    (20
    )
    
    $
    4,036
    
    
    $
    (44
    )
  8




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (6) Mortgage-Backed Securities
  Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDecember 31, 2010:Government pass-throughs:Government National Mortgage Association
    
    $
    16,965
    
    
    $
    48
    
    
    $
    (61
    )
    
    $
    16,952Freddie Mac
    
    
    6,914
    
    
    
    334
    
    
    
    
    
    
    
    7,248Fannie Mae
    
    
    16,064
    
    
    
    237
    
    
    
    (298
    )
    
    
    16,003Private pass-throughs
    
    
    138
    
    
    
    
    
    
    
    (1
    )
    
    
    137Collateralized mortgage
obligations
    
    
    579
    
    
    
    11
    
    
    
    
    
    
    
    590$
    40,660
    
    
    $
    630
    
    
    $
    (360
    )
    
    $
    40,930
 Gross
    
    
    GrossAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueSeptember 30, 2010:Government pass-throughs:Government National Mortgage Association
    
    $
    6,665
    
    
    $
    69
    
    
    $
    
    
    
    $
    6,734Freddie Mac
    
    
    7,876
    
    
    
    412
    
    
    
    
    
    
    
    8,288Fannie Mae
    
    
    6,447
    
    
    
    296
    
    
    
    
    
    
    
    6,743Private pass-throughs
    
    
    139
    
    
    
    
    
    
    
    (1
    )
    
    
    138Collateralized mortgage
obligations
    
    
    672
    
    
    
    14
    
    
    
    
    
    
    
    686$
    21,799
    
    
    $
    791
    
    
    $
    (1
    )
    
    $
    22,589
  9




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (6)  Mortgage-Backed Securities (Continued)
  December 31, 2010Less than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesGovernment National Mortgage Association
    
    $
    10,301
    
    
    $
    (61
    )
    
    $
    
    
    
    $
    
    
    
    $
    10,301
    
    
    $
    (61
    )Fannie Mae
    
    
    10,263
    
    
    
    (298
    )
    
    
    
    
    
    
    
    
    
    
    10,263
    
    
    
    (298
    )Private pass-throughs
    
    
    
    
    
    
    
    
    
    
    137
    
    
    
    (1
    )
    
    
    137
    
    
    
    (1
    )Total TemporarilyImpaired Securities
    
    $
    20,564
    
    
    $
    (359
    )
    
    $
    137
    
    
    $
    (1
    )
    
    $
    20,701
    
    
    $
    (360
    )
 September 30, 2010Less than 12 Months
    
    
    12 Months or More
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesPrivate pass-throughs
    
    $
    
    
    
    $
    
    
    
    $
    138
    
    
    $
    (1
    )
    
    $
    138
    
    
    $
    (1
    )Total TemporarilyImpaired Securities
    
    $
    
    
    
    $
    
    
    
    $
    138
    
    
    $
    (1
    )
    
    $
    138
    
    
    $
    (1
    )
  Mortgage-backed securities with a carrying value of $12,813,000 and $9,030,000 were pledged to
secure repurchase agreements and public fund accounts at December 31, 2010 and at September 30,
2010, respectively.
 10




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (7)  Loans Receivable and Related Allowance for Loan Losses
  Real Estate LoansOne-to-four-familyResidential
    
    
    Commercial
    
    
    Home Equityand
    
    
    Real
    
    
    Loans and Lines
    
    
    
    
    
    
    OtherConstruction
    
    
    Estate
    
    
    of Credit
    
    
    Commercial
    
    
    Loans (1)
    
    
    TotalDecember 31, 2010:Total loans before
allowance for loan losses
    
    $
    146,281
    
    
    $
    86,970
    
    
    $
    46,595
    
    
    $
    11,698
    
    
    $
    2,891
    
    
    $
    294,435Individually evaluated
for impairment
    
    
    
    
    
    
    1,389
    
    
    
    
    
    
    
    991
    
    
    
    
    
    
    
    2,380Collectively evaluated
for impairment
    
    
    146,281
    
    
    
    85,581
    
    
    
    46,595
    
    
    
    10,707
    
    
    
    2,891
    
    
    
    292,055September 30, 2010:Total loans before
allowance for loan losses
    
    $
    143,513
    
    
    $
    86,051
    
    
    $
    47,523
    
    
    $
    9,956
    
    
    $
    3,012
    
    
    $
    290,055Individually evaluated
for impairment
    
    $
    
    
    
    $
    1,379
    
    
    $
    
    
    
    $
    1,000
    
    
    $
    
    
    
    $
    2,379Collectively evaluated
for impairment
    
    $
    143,513
    
    
    $
    84,672
    
    
    $
    47,523
    
    
    $
    8,956
    
    
    $
    3,012
    
    
    $
    287,676
 
 (1)
    
    Consists of automobile loans, consumer loans and loans secured by savings accounts.   11




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (7)  Loans Receivable and Related Allowance for Loan Losses (Continued)
   Impaired LoansImpaired Loans With Allowance
    
    
    Without Allowance
    
    
    Total Impaired LoansUnpaidRecorded
    
    
    Related
    
    
    Recorded
    
    
    Recorded
    
    
    PrincipalInvestment
    
    
    Allowance
    
    
    Investment
    
    
    Investment
    
    
    BalanceDecember 31, 2010:Commercial real estate
    
    $
    1,389
    
    
    $
    625
    
    
    $
    
    
    
    $
    1,389
    
    
    $
    1,389Commercial
    
    
    991
    
    
    
    297
    
    
    
    
    
    
    
    991
    
    
    
    991Total impaired loans
    
    $
    2,380
    
    
    $
    922
    
    
    $
    
    
    
    $
    2,380
    
    
    $
    2,380September 30, 2010:Commercial real estate
    
    $
    1,379
    
    
    $
    414
    
    
    $
    
    
    
    $
    1,379
    
    
    $
    1,379Commercial
    
    
    1,000
    
    
    
    300
    
    
    
    
    
    
    
    1,000
    
    
    
    1,000Total impaired loans
    
    $
    2,379
    
    
    $
    714
    
    
    $
    
    
    
    $
    2,379
    
    
    $
    2,379
  Three months endedDecember 31,2010
    
    
    2009Average investment in impaired loans:Commercial real estate
    
    $
    1,384
    
    
    $
    Commercial
    
    
    996
    
    
    
    Total impaired loans
    
    $
    2,380
    
    
    $
    Interest income recognized on impaired loans:Accrual basis
    
    $
    
    
    
    $
    Cash basis
    
    $
    
    
    
    $
    
  12




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (7)  Loans Receivable and Related Allowance for Loan Losses (Continued)
    SpecialPass
    
    
    Mention
    
    
    Substandard
    
    
    Doubtful
    
    
    TotalDecember 31, 2010:First mortgage loans:One-to-four-family residential
and construction
    
    $
    145,358
    
    
    $
    
    
    
    $
    923
    
    
    $
    
    
    
    $
    146,281Commercial real estate
    
    
    81,096
    
    
    
    4,275
    
    
    
    1,599
    
    
    
    
    
    
    
    86,970Home equity loans and lines of credit
    
    
    46,458
    
    
    
    
    
    
    
    137
    
    
    
    
    
    
    
    46,595Commercial loans
    
    
    10,707
    
    
    
    
    
    
    
    991
    
    
    
    
    
    
    
    11,698Other loans (1)
    
    
    2,871
    
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    2,891Total
    
    $
    286,490
    
    
    $
    4,275
    
    
    $
    3,650
    
    
    $
    20
    
    
    $
    294,435September 30, 2010:First mortgage loans:One-to-four-family residential
and construction
    
    $
    142,457
    
    
    $
    
    
    
    $
    1,056
    
    
    $
    
    
    
    $
    143,513Commercial real estate
    
    
    79,023
    
    
    
    5,392
    
    
    
    1,636
    
    
    
    
    
    
    
    86,051Home equity loans and lines of credit
    
    
    47,307
    
    
    
    
    
    
    
    216
    
    
    
    
    
    
    
    47,523Commercial loans
    
    
    8,956
    
    
    
    
    
    
    
    1,000
    
    
    
    
    
    
    
    9,956Other loans (1)
    
    
    2,998
    
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    3,012Total
    
    $
    280,741
    
    
    $
    5,392
    
    
    $
    3,908
    
    
    $
    14
    
    
    $
    290,055
 
 (1)
    
    Consists of automobile loans, consumer loans and loans secured by savings accounts. 13




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (7)  Loans Receivable and Related Allowance for Loan Losses (Continued)
  30-59 Days
    
    
    60-89 Days
    
    
    Non-Accrual
    
    
    TotalCurrent
    
    
    Past Due
    
    
    Past Due
    
    
    (90 Days+)
    
    
    LoansDecember 31, 2010:First mortgage loans:One-to-four-family residential
and construction
    
    $
    142,482
    
    
    $
    2,467
    
    
    $
    409
    
    
    $
    923
    
    
    $
    146,281Commercial real estate
    
    
    82,381
    
    
    
    2,990
    
    
    
    
    
    
    
    1,599
    
    
    
    86,970Home equity loans and lines of credit
    
    
    46,128
    
    
    
    197
    
    
    
    133
    
    
    
    137
    
    
    
    46,595Commercial loans
    
    
    10,612
    
    
    
    95
    
    
    
    
    
    
    
    991
    
    
    
    11,698Other loans (1)
    
    
    2,826
    
    
    
    41
    
    
    
    4
    
    
    
    20
    
    
    
    2,891Total
    
    $
    284,429
    
    
    $
    5,790
    
    
    $
    546
    
    
    $
    3,670
    
    
    $
    294,435September 30, 2010:First mortgage loans:One-to-four-family residential
and construction
    
    $
    138,312
    
    
    $
    2,842
    
    
    $
    1,303
    
    
    $
    1,056
    
    
    $
    143,513Commercial real estate
    
    
    81,750
    
    
    
    2,261
    
    
    
    404
    
    
    
    1,636
    
    
    
    86,051Home equity loans and lines of credit
    
    
    47,016
    
    
    
    284
    
    
    
    7
    
    
    
    216
    
    
    
    47,523Commercial loans
    
    
    8,956
    
    
    
    
    
    
    
    
    
    
    
    1,000
    
    
    
    9,956Other loans (1)
    
    
    2,976
    
    
    
    22
    
    
    
    
    
    
    
    14
    
    
    
    3,012Total
    
    $
    279,010
    
    
    $
    5,409
    
    
    $
    1,714
    
    
    $
    3,922
    
    
    $
    290,055
 
 (1)
    
    Consists of automobile loans, consumer loans and loans secured by savings accounts.   14




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (7)  Loans Receivable and Related Allowance for Loan Losses (Continued)
    One-to-four-familyResidential, Construction,
    
    
    CommercialHome Equity Loans and
    
    
    Real Estate and
    
    
    OtherLines of Credit
    
    
    Commercial
    
    
    Loans (1)
    
    
    TotalBalance at September 30, 2010
    
    $
    1,394
    
    
    $
    2,529
    
    
    $
    66
    
    
    $
    3,989Charge-offs
    
    
    
    
    
    
    (192
    )
    
    
    (10
    )
    
    
    (202
    )Recoveries
    
    
    11
    
    
    
    31
    
    
    
    2
    
    
    
    44Provision
    
    
    210
    
    
    
    134
    
    
    
    6
    
    
    
    350Balance at December 31, 2010
    
    $
    1,615
    
    
    $
    2,502
    
    
    $
    64
    
    
    $
    4,181Individually evaluated
for impairment
    
    $
    
    
    
    $
    922
    
    
    $
    
    
    
    $
    922Collectively evaluated
for impairment
    
    $
    1,615
    
    
    $
    1,580
    
    
    $
    64
    
    
    $
    3,259
  (8)   Contribution to Standard Charitable Foundation
  15




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (9)  Employee Stock Ownership Plan
     (10)  Fair Value Measurements
  Level I:
    
    Inputs to the valuation methodology are unadjusted quoted
prices are available for identical assets or liabilities in
active markets that the Company has the ability to access.Level II:
    
    Inputs to the valuation methodology include quoted prices for
similar assets or liabilities in active markets; quoted prices
for identical assets or liabilities in inactive markets; inputs
other than quoted prices that are observable for the asset or
liability; inputs that are derived principally from or
corroborated by observable market data by corroborated or other
means. If the asset or liability has a specified (contractual)
term, the Level II input must be observable for substantially
the full term of the asset or liability.Level III:
    
    Inputs to the valuation methodology are unobservable and
significant to the fair value measurement.
 16




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (10)  Fair Value Measurements (Continued)
  December 31, 2010Level I
    
    
    Level II
    
    
    Level III
    
    
    TotalAssets measured at fair value
on a recurring basis:U.S. government and agency obligations
    
    $
    
    
    
    $
    25,635
    
    
    $
    
    
    
    $
    25,635Corporate bonds
    
    
    
    
    
    
    7,724
    
    
    
    
    
    
    
    7,724Municipal obligations
    
    
    
    
    
    
    24,636
    
    
    
    
    
    
    
    24,636Equity securities
    
    
    1,152
    
    
    
    
    
    
    
    
    
    
    
    1,152Mortgage-backed securities
    
    
    
    
    
    
    40,930
    
    
    
    
    
    
    
    40,930Assets measured at fair value
on a non-recurring basis:Impaired loans
    
    
    
    
    
    
    2,380
    
    
    
    
    
    
    
    2,380Foreclosed real estate
    
    
    
    
    
    
    940
    
    
    
    
    
    
    
    940$
    1,152
    
    
    $
    102,245
    
    
    $
    
    
    
    $
    103,397
 September 30, 2010Level I
    
    
    Level II
    
    
    Level III
    
    
    TotalAssets measured at fair value
on a recurring basis:U.S. government and agency obligations
    
    $
    
    
    
    $
    26,949
    
    
    $
    
    
    
    $
    26,949Corporate bonds
    
    
    
    
    
    
    7,795
    
    
    
    
    
    
    
    7,795Municipal obligations
    
    
    
    
    
    
    19,050
    
    
    
    
    
    
    
    19,050Equity securities
    
    
    1,154
    
    
    
    
    
    
    
    
    
    
    
    1,154Mortgage-backed securities
    
    
    
    
    
    
    22,589
    
    
    
    
    
    
    
    22,589Assets measured at fair value
on a non-recurring basis:Impaired loans
    
    
    
    
    
    
    1,000
    
    
    
    1,379
    
    
    
    2,379Foreclosed real estate
    
    
    
    
    
    
    884
    
    
    
    
    
    
    
    884Loans held for sale
    
    
    
    
    
    
    461
    
    
    
    
    
    
    
    461$
    1,154
    
    
    $
    78,728
    
    
    $
    1,379
    
    
    $
    81,261
  17




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##### Table of Contents



STANDARD FINANCIAL CORP.
 (11)  Fair Value of Financial Instruments
      18




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##### Table of Contents



STANDARD FINANCIAL CORP.
 Note 11  Fair Value of Financial Instruments (Continued)
  December 31, 2010
    
    
    September 30, 2010Fair
    
    
    Carrying
    
    
    Fair
    
    
    CarryingValue
    
    
    Value
    
    
    Value
    
    
    ValueFinancial Assets:Cash on hand and due from banks
    
    $
    2,001
    
    
    $
    2,001
    
    
    $
    2,052
    
    
    $
    2,052Interest-earning deposits in other
institutions
    
    
    7,144
    
    
    
    7,144
    
    
    
    36,936
    
    
    
    36,936Investment securities
    
    
    59,147
    
    
    
    59,147
    
    
    
    54,948
    
    
    
    54,948Mortgage-backed securities
    
    
    40,930
    
    
    
    40,930
    
    
    
    22,589
    
    
    
    22,589Loans receivable
    
    
    296,578
    
    
    
    290,254
    
    
    
    296,430
    
    
    
    286,066Loans held for sale
    
    
    
    
    
    
    
    
    
    
    461
    
    
    
    461Accrued interest receivable
    
    
    1,459
    
    
    
    1,459
    
    
    
    1,399
    
    
    
    1,399Federal Home Loan Bank stock
    
    
    3,246
    
    
    
    3,246
    
    
    
    3,416
    
    
    
    3,416Bank-owned life insurance
    
    
    9,508
    
    
    
    9,508
    
    
    
    9,419
    
    
    
    9,419Financial Liabilities:Deposits
    
    
    315,613
    
    
    
    312,095
    
    
    
    321,630
    
    
    
    316,217Federal Home Loan Bank advances
    
    
    38,949
    
    
    
    37,789
    
    
    
    39,417
    
    
    
    37,805Securities sold under agreements to repurchase
    
    
    4,250
    
    
    
    4,250
    
    
    
    3,444
    
    
    
    3,444Accrued interest payable
    
    
    312
    
    
    
    312
    
    
    
    323
    
    
    
    323Off-balance sheet financial insturments:Commitment to extend credit and
letters of credit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
 
 ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
    19




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##### Table of Contents



Comparison of Financial Condition
 General.
   Cash and Cash Equivalents.
 Loans.
 Investment Securities.
 20




---



##### Table of Contents



Mortgage-Backed Securities.
 Deposits.
   Borrowings.
 Stockholders Equity.
 Average Balance and Yields
  21




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##### Table of Contents



For the Three Months Ended December 31,2010
    
    
    2009Average
    
    
    
    
    
    
    
    
    
    
    AverageOutstanding
    
    
    
    
    
    
    
    
    
    
    OutstandingBalance
    
    
    Interest
    
    
    Yield/ Rate
    
    
    Balance
    
    
    Interest
    
    
    Yield/ Rate(Dollars in thousands)Interest-earning assets:Loans
    
    $
    292,145
    
    
    $
    3,983
    
    
    
    5.45
    %
    
    $
    276,288
    
    
    $
    4,018
    
    
    
    5.82
    %Investment and mortgage-backed securities
    
    
    95,031
    
    
    
    657
    
    
    
    2.77
    %
    
    
    69,347
    
    
    
    582
    
    
    
    3.36
    %Interest earning deposits
    
    
    22,045
    
    
    
    11
    
    
    
    0.20
    %
    
    
    14,192
    
    
    
    9
    
    
    
    0.25
    %Total interest-earning assets
    
    
    409,221
    
    
    
    4,651
    
    
    
    4.55
    %
    
    
    359,827
    
    
    
    4,609
    
    
    
    5.12
    %Noninterest-earning assets
    
    
    28,508
    
    
    
    
    
    
    
    
    
    
    
    29,287Total assets
    
    $
    437,729
    
    
    
    
    
    
    
    
    
    
    $
    389,114Interest-bearing liabilities:Savings accounts
    
    $
    123,429
    
    
    
    177
    
    
    
    0.57
    %
    
    $
    122,484
    
    
    
    363
    
    
    
    1.19
    %Certificates of deposit
    
    
    125,030
    
    
    
    824
    
    
    
    2.64
    %
    
    
    111,404
    
    
    
    848
    
    
    
    3.04
    %Money market accounts
    
    
    6,829
    
    
    
    5
    
    
    
    0.29
    %
    
    
    5,339
    
    
    
    4
    
    
    
    0.30
    %Demand and NOW accounts
    
    
    59,769
    
    
    
    18
    
    
    
    0.12
    %
    
    
    53,685
    
    
    
    27
    
    
    
    0.20
    %Total deposits
    
    
    315,057
    
    
    
    1,024
    
    
    
    1.30
    %
    
    
    292,912
    
    
    
    1,242
    
    
    
    1.70
    %Federal Home Loan Bank advances
    
    
    37,449
    
    
    
    309
    
    
    
    3.30
    %
    
    
    46,609
    
    
    
    500
    
    
    
    4.29
    %Securities sold under agreements to repurchase
    
    
    4,977
    
    
    
    6
    
    
    
    0.48
    %
    
    
    3,590
    
    
    
    8
    
    
    
    0.89
    %Total interest-bearing liabilities
    
    
    357,483
    
    
    
    1,339
    
    
    
    1.50
    %
    
    
    343,111
    
    
    
    1,750
    
    
    
    2.04
    %Noninterest-bearing liabilities
    
    
    5,317
    
    
    
    
    
    
    
    
    
    
    
    3,207Total liabilities
    
    
    362,800
    
    
    
    
    
    
    
    
    
    
    
    346,318Net worth
    
    
    74,929
    
    
    
    
    
    
    
    
    
    
    
    42,796Total liabilities and net worth
    
    $
    437,729
    
    
    
    
    
    
    
    
    
    
    $
    389,114Net interest income
    
    
    
    
    
    $
    3,312
    
    
    
    
    
    
    
    
    
    
    $
    2,859Net interest rate spread (1)
    
    
    
    
    
    
    
    
    
    
    3.05
    %
    
    
    
    
    
    
    
    
    
    
    3.08
    %Net interest-earning assets (2)
    
    $
    51,738
    
    
    
    
    
    
    
    
    
    
    $
    16,716Net interest margin (3)
    
    
    
    
    
    
    
    
    
    
    3.24
    %
    
    
    
    
    
    
    
    
    
    
    3.18
    %Average interest-earning assets to interest-
bearing liabilities
    
    
    114.47
    %
    
    
    
    
    
    
    
    
    
    
    104.87
    %
 
 (1)
    
    Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.(2)
    
    Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.(3)
    
    Net interest margin represents net interest income divided by average total interest-earning assets. 22




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##### Table of Contents



Comparison of Operating Results for the Three Months Ended December 31, 2010 and 2009
 General.
 Net Interest Income.
 Interest and Dividend Income.
    23




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##### Table of Contents



Interest Expense.
   Provision for Loan Losses. .
 Noninterest Income.
 Noninterest Expense.
 Income Tax (Benefit)Expense.
 24




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##### Table of Contents



Non-Performing and Problem Assets
  PercentageNumber of
    
    
    
    
    
    of LoansLoans
    
    Amount
    
    ReceivableDecember 31, 2010
    
    
    24
    
    
    $
    3,670
    
    
    
    1.26
    %September 30, 2010
    
    
    20
    
    
    
    3,922
    
    
    
    1.37
   Liquidity and Capital Resources
    25




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##### Table of Contents



ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
 Not applicable to smaller reporting companies.
 
 ITEM 4. Controls and Procedures
   
 PART II  OTHER INFORMATION
 
 ITEM 1. Legal Proceedings
  
 ITEM 1A. Risk Factors
  
 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
 
 ITEM 3. Defaults Upon Senior Securities
 
 
 ITEM 4. (Removed and Reserved)
 
 ITEM 5. Other Information
   26




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##### Table of Contents



ITEM 6 Exhibits
 3.1
    
    Articles of Incorporation of Standard Financial Corp.*3.2
    
    Bylaws of Standard Financial Corp.*4
    
    Form of Common Stock Certificate of Standard Financial Corp.*10.1
    
    Form of Standard Bank, PaSB Employee Stock Ownership Plan*10.2
    
    Form of Standard Financial Corp. and Standard Bank, PaSB Three-Year Employment
Agreement*10.3
    
    Form of Standard Financial Corp. and Standard Bank, PaSB Two-Year Employment
Agreement*10.4
    
    Form of Standard Bank, PaSB Change in Control Agreement*10.5
    
    Form of Phantom Stock Agreement for Officers*10.6
    
    Form of Phantom Stock Agreement for Directors*10.7
    
    Chief Financial Officer Performance Based Compensation Plan*10.8
    
    Chief Commercial Lending Officer Performance Based Compensation Plan*10.9
    
    Non-Compete Agreement between Standard Bank, PaSB and David C. Mathews*31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 *
    
    Incorporated by reference to the Registration Statement on Form S-1 of Standard Financial
Corp. (File No. 333-167579), originally filed with the Securities and Exchange Commission on
June 17, 2010, as amended. 27




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##### Table of Contents



SIGNATURES
  STANDARD FINANCIAL CORP.
 Signatures
    
    Title
    
    Date/s/ Timothy K. Zimmerman

Timothy K. Zimmerman
    
    President, Chief Executive 
Officer and Director
(Principal Executive
Officer)
    
    February 11, 2011/s/ Colleen M. Brown

Colleen M. Brown
    
    Senior Vice President and 
Chief Financial Officer
(Principal Financial and 
Accounting Officer)
    
    February 11, 2011
 28