10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

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	27-3100949
(State or other jurisdiction of incorporation or organization)	(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)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  o Yes  x No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 3,511,173 shares, par value $0.01, at August 1, 2012.

Standard Financial Corp.

Table of Contents

	Part I — Financial Information
ITEM 1.	Financial Statements (Unaudited)	1-20
	Consolidated Statements of Financial Condition as of June 30, 2012 and September 30, 2011
	Consolidated Statements of Income for the Three and Nine Months Ended June 30, 2012 and 2011
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended June 30, 2012 and 2011
	Consolidated Statement of Changes in Stockholder’s Equity for the Nine Months Ended June 30, 2012
	Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2012 and 2011
	Notes to Consolidated Statements
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21-28
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	28
ITEM 4.	Controls and Procedures	28
	PART II — Other Information
ITEM 1.	Legal Proceedings	28
ITEM 1A.	Risk Factors	28
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
ITEM 3.	Defaults Upon Senior Securities	29
ITEM 4.	Mine Safety Disclosures	29
ITEM 5.	Other Information	29
ITEM 6.	Exhibits	29
	Signatures	30

PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements

Standard Financial Corp.

Consolidated Statements of Financial Condition (Unaudited)

(Dollars in thousands)

	June 30,			September 30,
	2012			2011
ASSETS
Cash on hand and due from banks	$	1,891		$	1,869
Interest-earning deposits in other institutions	8,627			10,789
Cash and Cash Equivalents	10,518			12,658
Investment securities available for sale, at fair value	66,194			62,946
Mortgage-backed securities available for sale, at fair value	43,363			42,808
Federal Home Loan Bank stock, at cost	2,780			2,839
Loans receivable, net of allowance for loan losses of $4,338 and $4,521	292,329			285,113
Loans held for sale	419			100
Foreclosed real estate	560			743
Office properties and equipment, at cost, less accumulated depreciation	3,931			3,903
Bank-owned life insurance	10,046			9,778
Goodwill	8,769			8,769
Core deposit intangible	561			687
Prepaid federal deposit insurance	647			846
Accrued interest and other assets	2,586			3,429
TOTAL ASSETS	$	442,703		$	434,619
Liabilities
Deposits:
Demand, regular and club accounts	$	186,543		$	186,235
Certificate accounts	139,151			134,087
Total Deposits	325,694			320,322
Federal Home Loan Bank advances	31,618			28,520
Securities sold under agreements to repurchase	2,199			2,897
Advance deposits by borrowers for taxes and insurance	657			588
Securities purchased not settled	—			993
Accrued interest and other expenses	2,455			2,583
TOTAL LIABILITIES	362,623			355,903
Stockholders’ Equity
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued	—			—
Common stock, $0.01 par value per share, 40,000,000 shares authorized, 3,410,573 and 3,478,173 shares outstanding, respectively	34			35
Additional paid-in-capital	32,435			33,403
Retained earnings	48,400			46,475
Unearned Employee Stock Ownership Plan (ESOP) shares	(2,682		)	(2,797		)
Accumulated other comprehensive income	1,893			1,600
TOTAL STOCKHOLDERS’ EQUITY	80,080			78,716
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	442,703		$	434,619

See accompanying notes to the consolidated financial statements.

1

Standard Financial Corp.

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share data)

	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
Interest and Dividend Income
Loans, including fees	$	3,617	$	3,918	$	11,121	$	11,856
Mortgage-backed securities	282		350		832		939
Investments:
Taxable	183		219		549		680
Tax-exempt	215		155		607		455
Interest-earning deposits	1		1		4		7
Total Interest and Dividend Income	4,298		4,643		13,113		13,937
Interest Expense
Deposits	896		905		2,738		2,863
Securities sold under agreements to repurchase	1		4		5		13
Federal Home Loan Bank advances	194		283		575		888
Total Interest Expense	1,091		1,192		3,318		3,764
Net Interest Income	3,207		3,451		9,795		10,173
Provision for Loan Losses	300		425		900		1,200
Net Interest Income after Provision for Loan Losses	2,907		3,026		8,895		8,973
Noninterest Income
Service charges	388		401		1,195		1,208
Earnings on bank-owned life insurance	99		100		299		294
Net securities gains	—		—		55		2
Net loan sale gains	85		10		128		70
Annuity and mutual fund fees	38		79		102		149
Other income	5		6		21		26
Total Noninterest Income	615		596		1,800		1,749
Noninterest Expenses
Compensation and employee benefits	1,446		1,383		4,306		4,111
Data processing	103		96		326		285
Premises and occupancy costs	279		259		818		741
Core deposit amortization	42		42		126		126
Automatic teller machine expense	75		82		235		231
Federal deposit insurance	69		80		217		299
Contribution to Standard Charitable Foundation	—		—		—		1,376
Other operating expenses	437		446		1,353		1,271
Total Noninterest Expenses	2,451		2,388		7,381		8,440
Income before Income Tax Expense	1,071		1,234		3,314		2,282
Income Tax Expense
Federal	257		325		791		472
State	50		64		146		119
Total Income Tax Expense	307		389		937		591
Net Income	$	764	$	845	$	2,377	$	1,691
Earnings Per Share:
Basic earnings per common share	$	0.24	$	0.26	$	0.75	$	0.53
Cash dividends paid per common share	$	0.045	$	—	$	0.135	$	—
Weighted average shares outstanding	3,158,685		3,209,516		3,173,589		3,205,889

See accompanying notes to the consolidated financial statements.

2

Standard Financial Corp.

Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)

	Three Months Ended June 30,						Nine Months Ended June 30,
	2012			2011			2012			2011
Net Income	$	764		$	845		$	2,377		$	1,691
Other comprehensive income (loss):
Comprehensive gain (loss) on securities available for sale	805			1,331			499			(344		)
Tax effect	(274		)	(453		)	(170		)	117
Reclassification adjustment for gains realized in income	—			—			(55		)	(2		)
Tax effect	—			—			19			1
Total other comprehensive income (loss)	531			878			293			(228		)
Total Comprehensive Income	$	1,295		$	1,723		$	2,670		$	1,463

See accompanying notes to the consolidated financial statements.

3

Standard Financial Corp.

Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)

(Dollars in thousands)

													Accumulated
				Additional						Unearned			Other		Total
	Common			Paid-In			Retained			ESOP			Comprehensive		Stockholders’
	Stock			Capital			Earnings			Shares			Income		Equity
Balance, September 30, 2011	$	35		$	33,403		$	46,475		$	(2,797	)	$	1,600	$	78,716
Net income	—			—			2,377			—			—		2,377
Other comprehensive income	—			—			—			—			293		293
Stock repurchases (67,600 shares)	(1		)	(1,022		)	—			—			—		(1,023		)
Cash dividends ($0.135 per share)	—			—			(452		)	—			—		(452		)
Compensation expense on ESOP	—			54			—			115			—		169
Balance, June 30, 2012	$	34		$	32,435		$	48,400		$	(2,682	)	$	1,893	$	80,080

See accompanying notes to the consolidated financial statements.

4

Standard Financial Corp.

Consolidated Statements of Cash Flows (Unaudited)

(Dollars in thousands)

	Nine Months Ended June 30,
	2012			2011
Cash Flows from Operating Activities
Net income	$	2,377		$	1,691
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	316			294
Provision for loan losses	900			1,200
Amortization of core deposit intangible	126			126
Net amortization of premium/discount on securities	231			240
Net gain on securities	(55		)	(2		)
Origination of loans held for sale	(5,166		)	(3,294		)
Proceeds from sale of loans held for sale	4,975			3,701
Gain on sale of loans held for sale	(128		)	(70		)
Compensation expense on ESOP	169			162
Stock contribution to Charitable Foundation	—			1,176
Deferred income taxes	200			(623		)
Decrease (increase) in accrued interest and other assets	372			(163		)
Decrease in prepaid Federal deposit insurance	199			273
Earnings on bank-owned life insurance	(299		)	(294		)
Increase (decrease) in accrued interest payable	13			(40		)
(Decrease) increase in other accrued expenses	(141		)	451
Increase in accrued income taxes payable	120			13
Other, net	105			133
Net Cash Provided by Operating Activities	4,314			4,974
Cash Flows from Investing Activities
Net increase in loans	(8,987		)	(5,137		)
Purchases of investment securities	(24,770		)	(30,911		)
Purchases of mortgage-backed securities	(9,510		)	(27,977		)
Proceeds from maturities/principal repayments/calls of:
Investment securities	14,872			27,559
Mortgage-backed securities	8,769			6,000
Proceeds from sales of investment securities	6,110			504
Redemption of Federal Home Loan Bank stock	277			488
Purchases of Federal Home Loan Bank stock	(218		)	(60		)
Proceeds from sales of foreclosed real estate	981			383
Net purchases of office properties and equipment	(344		)	(452		)
Net Cash Used in Investing Activities	(12,820		)	(29,603		)
Cash Flows from Financing Activities
Net increase (decrease) in demand, regular and club accounts	308			(1,400		)
Net increase in certificate accounts	5,064			711
Net (decrease) increase in securities sold under agreements to repurchase	(698		)	990
Stock proceeds less conversion expenses	—			457
Purchase of ESOP shares	—			(1,168		)
Repayments of Federal Home Loan Bank advances	(4,904		)	(8,633		)
Proceeds from Federal Home Loan Bank advances	8,002			7,752
Net increase in advance deposits by borrowers for taxes and insurance	69			213
Dividends paid	(452		)	—
Stock repurchases	(1,023		)	—
Net Cash Provided (Used) by Financing Activities	6,366			(1,078		)
Net Decrease in Cash and Cash Equivalents	(2,140		)	(25,707		)
Cash and Cash Equivalents - Beginning	12,658			38,988
Cash and Cash Equivalents - Ending	$	10,518		$	13,281
Supplementary Cash Flows Information
Interest paid	$	3,305		$	3,804
Income taxes paid	$	617		$	1,204
Supplementary Schedule of Noncash Investing and Financing Activities
Foreclosed real estate acquired in settlement of loans	$	871		$	130
Issuance of common stock from stock subscription payable	$	—		$	28,759
Issuance of common stock from customer deposit accounts	$	—		$	1,201
Issuance of common stock for ESOP plan	$	—		$	1,782
Securities purchased not settled	$	—		$	1,160

See accompanying notes to the consolidated financial statements.

5

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(1)Consolidation

The accompanying consolidated financial statements include the accounts of Standard Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company.  All significant intercompany accounts and transactions have been eliminated in consolidation.

(2)Basis of Presentation

The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. These financial statements should be read in conjunction with the audited financial statements and the accompanying notes thereto included in the Company’s Annual Report for the fiscal year ended September 30, 2011. The results for the three and nine month periods ended June 30, 2012 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2012 or any future interim period. Certain amounts in the 2011 financial statements have been reclassified to conform to the 2012 presentation format. These reclassifications had no effect on stockholders’ equity or net income.

(3)Recent Accounting Pronouncements

In December 2011, the FASB issued ASU 2011-10, Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate-a Scope Clarification.  The amendments in this Update affect entities that cease to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt. Under the amendments in this Update, when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20 to determine whether it should derecognize the in substance real estate. Generally, a reporting entity would not satisfy the requirements to derecognize the in substance real estate before the legal transfer of the real estate to the lender and the extinguishment of the related nonrecourse indebtedness.  That is, even if the reporting entity ceases to have a controlling financial interest under Subtopic 810-10, the reporting entity would continue to include the real estate, debt, and the results of the subsidiary’s operations in its consolidated financial statements until legal title to the real estate is transferred to legally satisfy the debt.  The amendments in this Update should be applied on a prospective basis to deconsolidation events occurring after the effective date.  Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities.  For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012.  For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2013, and interim and annual periods thereafter. Early adoption is permitted.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210):  Disclosures about Offsetting Assets and Liabilities.  The amendments in this Update affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement.  The requirements amend the disclosure requirements on offsetting in Section 210-20-50.  This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update.  An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.  An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-12, Comprehensive Income (Topic 220):  Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05.  In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05.  Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05.  All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter.  This ASU is not expected to have a significant impact on the Company’s financial statements.

6

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(4)Investment Securities

Investment securities available for sale at June 30, 2012 and at September 30, 2011 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2012:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	17,993	$	121	$	—		$	18,114
Beyond 5 years but within 10 years	7,000		41		(1		)	7,040
Corporate bonds due:
Within 1 year	251		6		—			257
Beyond 1 year but within 5 years	7,002		35		(261		)	6,776
Municipal obligations due:
Within 1 year	680		1		—			681
Beyond 1 year but within 5 years	2,543		143		—			2,686
Beyond 5 years but within 10 years	21,935		1,255		(11		)	23,179
Beyond 10 years	5,739		371		—			6,110
Equity securities:
CRA Investment Fund	750		25		—			775
Freddie Mac common stock	10		—		(1		)	9
Other common stocks	485		96		(14		)	567
	$	64,388	$	2,094	$	(288	)	$	66,194

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2011:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	21,493	$	151	$	—		$	21,644
Beyond 5 years but within 10 years	3,000		10		—			3,010
Corporate bonds due:
Beyond 1 year but within 5 years	7,255		9		(198		)	7,066
Municipal obligations due:
Within 1 year	4,172		15		—			4,187
Beyond 1 year but within 5 years	1,270		5		—			1,275
Beyond 5 years but within 10 years	14,255		716		—			14,971
Beyond 10 years	8,898		649		—			9,547
Equity securities:
CRA Investment Fund	750		21		—			771
Freddie Mac common stock	10		—		(2		)	8
Other common stocks	458		36		(27		)	467
	$	61,561	$	1,612	$	(227	)	$	62,946

7

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(4) Investment Securities (Continued)

During the nine months ended June 30, 2012, gains on sales of investment securities were $55,000 and proceeds from such sales were $6.1 million.  During the nine months ended June 30, 2011, gains on sales of investment securities were $2,000 and proceeds from such sales were $ 504,000.  During the three months ended June 30, 2012 and 2011, there were no sales of investment securities.

The following table shows the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at June 30, 2012 and at September 30, 2011 (dollars in thousands):

	June 30, 2012
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. government and agency obligations	$	1,999	$	(1	)	$	—	$	—		$	1,999	$	(1	)
Corporate bonds	—		—			5,739		(261		)	5,739		(261		)
Municipal obligations	983		(11		)	—		—			983		(11		)
Equity securities	34		(2		)	77		(13		)	111		(15		)
Total	$	3,016	$	(14	)	$	5,816	$	(274	)	$	8,832	$	(288	)

	September 30, 2011
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Corporate bonds	$	1,925	$	(74	)	$	3,876	$	(124	)	$	5,801	$	(198	)
Equity securities	93		(9		)	60		(20		)	153		(29		)
Total	$	2,018	$	(83	)	$	3,936	$	(144	)	$	5,954	$	(227	)

At June 30, 2012 and September 30, 2011, the Company held 14 and 16 securities, respectively, in an unrealized loss position.  The decline in the fair value of these securities resulted primarily from interest rate fluctuations.  The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery, and the Company believes the collection of the investment and related interest is probable.  Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses.

8

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(5) Mortgage-Backed Securities

Mortgage-backed securities available for sale at June 30, 2012 and at September 30, 2011 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2012:
Government pass-throughs:
Ginnie Mae	$	16,390	$	247	$	—		$	16,637
Fannie Mae	19,988		591		—			20,579
Freddie Mac	3,482		222		—			3,704
Private pass-throughs	125		—		(1		)	124
Collateralized mortgage obligations	2,317		9		(7		)	2,319
	$	42,302	$	1,069	$	(8	)	$	43,363

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2011:
Government pass-throughs:
Ginnie Mae	$	19,080	$	164	$	(52	)	$	19,192
Fannie Mae	17,358		602		—			17,960
Freddie Mac	4,755		316		—			5,071
Private pass-throughs	131		—		(1		)	130
Collateralized mortgage obligations	446		9		—			455
	$	41,770	$	1,091	$	(53	)	$	42,808

During the three and nine months ended June 30, 2012 and 2011, there were no sales of mortgage-backed securities.

9

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(5)  Mortgage-Backed Securities (Continued)

The following table shows the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at June 30, 2012 and at September 30, 2011 (dollars in thousands):

	June 30, 2012
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Private pass-throughs	$	—	$	—		$	124	$	(1	)	$	124	$	(1	)
Collateralized mortgage obligations	1,964		(7		)	—		—			1,964		(7		)
Total	$	1,964	$	(7	)	$	124	$	(1	)	$	2,088	$	(8	)

	September 30, 2011
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Ginnie Mae	$	9,961	$	(52	)	$	—	$	—		$	9,961	$	(52	)
Private pass-throughs	—		—			130		(1		)	130		(1		)
Total	$	9,961	$	(52	)	$	130	$	(1	)	$	10,091	$	(53	)

At June 30, 2012 and September 30, 2011, the Company held 2 and 3 mortgage-backed securities, respectively, in an unrealized loss position.  The decline in the fair value of these securities resulted primarily from interest rate fluctuations.  The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before its anticipated recovery, and the Company believes the collection of the investment and related interest is probable.  Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses.

Mortgage-backed securities with a carrying value of $19.6 million and $25.1 million were pledged to secure repurchase agreements and public fund accounts at June 30, 2012 and at September 30, 2011, respectively.

10

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(6)  Loans Receivable and Related Allowance for Loan Losses

The following table summarizes the primary segments of the loan portfolio as of June 30, 2012 and September 30, 2011 (dollars in thousands):

	Real Estate Loans
	One-to-four-family
	Residential		Commercial		Home Equity
	and		Real		Loans and Lines				Other
	Construction		Estate		of Credit		Commercial		Loans		Total
June 30, 2012:
Total loans before allowance for loan losses	$	143,606	$	91,884	$	46,832	$	12,072	$	2,273	$	296,667
Individually evaluated for impairment	$	—	$	2,385	$	—	$	477	$	—	$	2,862
Collectively evaluated for impairment	$	143,606	$	89,499	$	46,832	$	11,595	$	2,273	$	293,805
September 30, 2011:
Total loans before allowance for loan losses	$	141,869	$	88,096	$	45,594	$	11,683	$	2,392	$	289,634
Individually evaluated for impairment	$	—	$	3,101	$	—	$	39	$	—	$	3,140
Collectively evaluated for impairment	$	141,869	$	84,995	$	45,594	$	11,644	$	2,392	$	286,494

The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance.  Real estate loans are disaggregated into three categories which include one-to-four family residential (including residential construction loans), commercial real estate (which are primarily first liens) and home equity loans and lines of credit (which are generally second liens).  The commercial loan segment consists of loans made for the purpose of financing the activities of commercial customers.  Other loans consist of automobile loans, consumer loans and loans secured by savings accounts.  The portfolio segments utilized in the calculation of the allowance for loan losses are disaggregated at the same level that management uses to monitor risk in the portfolio.  Therefore the portfolio segments and classes of loans are the same.

Management evaluates individual loans in the commercial and commercial real estate loan segments for possible impairment if the loan is in nonaccrual status or is risk rated Substandard, Doubtful or Loss and is greater than 90 days past due.  Loans are considered to be impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  The Company does not separately evaluate individual consumer and residential real estate loans for impairment, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring agreement.  Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan by loan basis, with management primarily utilizing the fair value of collateral method.  The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis.  The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. There were no loans considered to be a troubled debt restructuring at June 30, 2012 and at September 30, 2011.

11

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(6) Loans Receivable and Related Allowance for Loan Losses (Continued)

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary at June 30, 2012 and September 30, 2011 (dollars in thousands):

	Impaired Loans With Allowance				Impaired Loans Without Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
	Investment		Allowance		Investment		Investment		Balance
June 30, 2012:
Commercial real estate	$	2,385	$	716	$	—	$	2,385	$	2,385
Commercial	477		143		—		477		477
Total impaired loans	$	2,862	$	859	$	—	$	2,862	$	2,862
September 30, 2011:
Commercial real estate	$	3,101	$	930	$	—	$	3,101	$	3,101
Commercial	39		12		—		39		39
Total impaired loans	$	3,140	$	942	$	—	$	3,140	$	3,140

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (dollars in thousands):

	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012		2011
Average investment in impaired loans:
Commercial real estate	$	2,312	$	1,772	$	2,491	$	1,513
Commercial	545		489		435		823
Total impaired loans	$	2,857	$	2,261	$	2,926	$	2,336
Interest income recognized on impaired loans:
Accrual basis	$	—	$	—	$	—	$	—

The loan rating categories utilized by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification.  Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected.  All loans greater than 90 days past due are considered substandard.  Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.  Assets (or portions of assets) classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted and are charged off against the loan loss allowance.  The pass category includes all loans not considered special mention, substandard, doubtful or loss.

12

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(6)   Loans Receivable and Related Allowance for Loan Losses (Continued)

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential real estate loans are included in the pass categories unless a specific action, such as delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s commercial loan officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. An annual loan review is performed for all commercial real estate and commercial loans for all commercial relationships greater than $500,000.  The Bank engages an external consultant to conduct loan reviews on at least an annual basis. Generally, the external consultant reviews commercial relationships greater than $500,000 and all criticized relationships.  Loans in the special mention, substandard or doubtful categories that are collectively evaluated for impairment are given separate consideration in the determination of the loan loss allowance.

The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system as of June 30, 2012 and September 30, 2011 (dollars in thousands):

			Special
	Pass		Mention		Substandard		Doubtful		Total
June 30, 2012:
First mortgage loans:
One-to-four-family residential and construction	$	142,538	$	—	$	1,068	$	—	$	143,606
Commercial real estate	85,726		2,734		3,424		—		91,884
Home equity loans and lines of credit	46,642		—		53		137		46,832
Commercial loans	11,595		—		477		—		12,072
Other loans	2,264		—		2		7		2,273
Total	$	288,765	$	2,734	$	5,024	$	144	$	296,667
September 30, 2011:
First mortgage loans:
One-to-four-family residential and construction	$	140,433	$	—	$	1,436	$	—	$	141,869
Commercial real estate	80,860		2,808		4,428		—		88,096
Home equity loans and lines of credit	45,547		—		47		—		45,594
Commercial loans	10,644		—		1,039		—		11,683
Other loans	2,389		—		—		3		2,392
Total	$	279,873	$	2,808	$	6,950	$	3	$	289,634

13

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(6)Loans Receivable and Related Allowance for Loan Losses (Continued)

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due.  At June 30, 2012 and September 30, 2011, there were no loans 90 days past due and still accruing.  The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2012 and September 30, 2011 (dollars in thousands):

			30-59 Days		60-89 Days		Non-Accrual		Total
	Current		Past Due		Past Due		(90 Days+)		Loans
June 30, 2012:
First mortgage loans:
One-to-four-family residential and construction	$	140,371	$	1,357	$	810	$	1,068	$	143,606
Commercial real estate	89,006		397		96		2,385		91,884
Home equity loans and lines of credit	46,559		69		14		190		46,832
Commercial loans	11,515		80		—		477		12,072
Other loans	2,261		3		2		7		2,273
Total	$	289,712	$	1,906	$	922	$	4,127	$	296,667
September 30, 2011:
First mortgage loans:
One-to-four-family residential and construction	$	137,935	$	1,977	$	521	$	1,436	$	141,869
Commercial real estate	83,641		1,006		348		3,101		88,096
Home equity loans and lines of credit	45,457		68		22		47		45,594
Commercial loans	11,563		—		81		39		11,683
Other loans	2,386		3		—		3		2,392
Total	$	280,982	$	3,054	$	972	$	4,626	$	289,634

An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio.  The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans.

Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate.  For general allowances, historical loss trends are used in the estimation of losses in the current portfolio.  These historical loss amounts are modified by other qualitative factors.  Management tracks the historical net charge-off activity for the loan segments which may be adjusted for qualitative factors.  Pass rated credits are segregated from criticized credits for the application of qualitative factors.  Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors.

Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience.  The additional factors are evaluated using information obtained from internal, regulatory, and governmental sources such as national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL.  When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.  Management utilizes an internally developed spreadsheet to track and apply the various components of the allowance.

14

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

Loans Receivable and Related Allowance for Loan Losses (Continued)

The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment.  Activity in the allowance is presented for the nine months ended June 30, 2012 and 2011 (dollars in thousands):

	Real Estate Loans
	One-to-four-						Home
	family			Commercial			Equity Loans
	Residential and			Real			and Lines						Other
	Construction			Estate			of Credit			Commercial			Loans			Total
Balance at September 30, 2011	$	682		$	3,024		$	173		$	452		$	190		$	4,521
Charge-offs	(235		)	(233		)	(32		)	(640		)	(9		)	(1,149		)
Recoveries	—			59			—			4			3			66
Provision	200			—			50			650			—			900
Balance at June 30, 2012	$	647		$	2,850		$	191		$	466		$	184		$	4,338
Balance at September 30, 2010	$	609		$	2,460		$	220		$	483		$	217		$	3,989
Charge-offs	(109		)	(476		)	(26		)	(85		)	(36		)	(732		)
Recoveries	12			31			—			26			12			81
Provision	397			679			28			56			40			1,200
Balance at June 30, 2011	$	909		$	2,694		$	222		$	480		$	233		$	4,538

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines				Other
	Construction		Estate		of Credit		Commercial		Loans		Total
Evaluated for Impairment:
Individually	$	—	$	716	$	—	$	143	$	—	$	859
Collectively	647		2,134		191		323		184		3,479
Balance at June 30, 2012	$	647	$	2,850	$	191	$	466	$	184	$	4,338
Evaluated for Impairment:
Individually	$	—	$	930	$	—	$	12	$	—	$	942
Collectively	682		2,094		173		440		190		3,579
Balance at September 30, 2011	$	682	$	3,024	$	173	$	452	$	190	$	4,521

The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date.

15

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(7)  Contribution to Standard Charitable Foundation

The Company made a $1.4 million one-time contribution to Standard Charitable Foundation during the quarter ended December 31, 2010 in connection with its stock conversion.  This contribution represented $1.2 million or 3.5% of the stock issued on October 6, 2010 and $200,000 in cash.  The after tax impact on net income of this one-time contribution was net expense of $908,000 (net of income tax benefit of $468,000).

(8)  Employee Stock Ownership Plan

The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010.  Eligible employees begin to participate in the plan after one year of service and become 20% vested in their accounts after two years of service, 40% after three years of service, 60% after four years of service, 80% after five years of service and 100% after six years of service or, if earlier, upon death, disability or attainment of normal retirement age.

In connection with the stock conversion, the purchase of the 278,254 shares of the Company stock by the ESOP was funded by a loan from the Company through the Bank.  Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as a contra-equity account in the stockholders’ equity of the Company.  Shares are released as debt payments are made by the ESOP to the loan.  The ESOP’s sources of repayment of the loan can include dividends, if any, on the unallocated stock held by the ESOP and discretionary contributions from the Company to the ESOP and earnings thereon.

Compensation is recognized under the shares released method and compensation expense is equal to the fair value of the shares committed to be released and unallocated ESOP shares are excluded from outstanding shares for purposes of computing earnings per share.  Compensation expense related to the ESOP of $169,000 and $162,000 was recognized during the nine months ended June 30, 2012 and 2011, respectively.

As of June 30, 2012, the ESOP held a total of 278,254 shares of the Company’s stock, and there were 260,186 unallocated shares.  The fair market value of the unallocated ESOP shares was $4.2 million at June 30, 2012.

(9)  Fair Value of Assets and Liabilities

Fair Value Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date.  GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level 1:	Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.  A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.  A contractually binding sales price also provides reliable evidence of fair value.
Level 2:	Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market.
Level 3:	Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed.

Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements.  Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis.

16

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(9)  Fair Value of Assets and Liabilities (Continued)

Assets Measured at Fair Value on a Recurring Basis

Investment and Mortgage-Backed Securities Available for Sale

Fair values of investment and mortgage-backed securities available for sale were primarily measured using information from a third-party pricing service.  This service provides pricing information by utilizing evaluated pricing models supported with market data information.  Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications.  Level 1 securities are comprised of equity securities.  As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements.  Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies.  Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models.  In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes.

On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service.  This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service.  Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets.  Securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs.  As of June 30, 2012 and September 30, 2011, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets.  On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used.  Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted.

The following table presents the assets measured at fair value on a recurring basis as of June 30, 2012 and September 30, 2011 by level within the fair value hierarchy (dollars in thousands):

	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	or Liabilities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2012:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	25,154	$	—	$	25,154
Corporate bonds	—		7,033		—		7,033
Municipal obligations	—		32,656		—		32,656
Equity securities	1,351		—		—		1,351
Total investment securities available for sale	1,351		64,843		—		66,194
Mortgage-backed securities available for sale	—		43,363		—		43,363
Total recurring fair value measurements	$	1,351	$	108,206	$	—	$	109,557
September 30, 2011:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	24,654	$	—	$	24,654
Corporate bonds	—		7,066		—		7,066
Municipal obligations	—		29,980		—		29,980
Equity securities	1,246		—		—		1,246
Total investment securities available for sale	1,246		61,700		—		62,946
Mortgage-backed securities	—		42,808		—		42,808
Total recurring fair value measurements	$	1,246	$	104,508	$	—	$	105,754

17

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(9)  Fair Value of Assets and Liabilities (Continued)

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the assets measured at fair value on a nonrecurring basis as of June 30, 2012 and September 30, 2011 by level within the fair value hierarchy (dollars in thousands):

	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	or Liabilities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2012:
Foreclosed real estate	$	—	$	—	$	560	$	560
Impaired loans	—		—		2,003		2,003
Total nonrecurring fair value measurements	$	—	$	—	$	2,563	$	2,563
September 30, 2011:
Foreclosed real estate	$	—	$	—	$	743	$	743
Impaired loans	—		—		2,198		2,198
Total nonrecurring fair value measurements	$	—	$	—	$	2,941	$	2,941

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses level 3 inputs to determine fair value (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements
			Valuation	Unobservable	Range
June 30, 2012:	Estimate		Techniques	Input	(Weighted Average)
Foreclosed real estate	$	560	Appraisal of	Appraisal adjustments (2)	0% to -40% (-25%)
			collateral (1)	Liquidation expenses (2)	0% to -10% (-5%)
Impaired loans	$	2,003	Fair value of	Appraisal adjustments (2)	0% to -40% (-25%)
			collateral (1), (3)	Liquidation expenses (2)	0% to -10% (-5%)

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3)Includes qualitative adjustments by management and estimated liquidation expenses.

18

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(9)  Fair Value of Assets and Liabilities (Continued)

Disclosures about Fair Value of Financial Instruments

The assumptions used below are expected to approximate those that market participants would use in valuing the following financial instruments.

Loans Receivable and Loans Held for Sale

The fair value of the Company’s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.  Loans were first segregated by type such as commercial, real estate, and home equity, and were then further segmented into fixed and variable rate and loan quality categories.  Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments.  The fair value of loans held for sale was estimated based on the price committed to sell the loan in the secondary market.

Certificate Deposit Accounts

The fair values of the Company’s certificate deposit accounts were estimated using discounted cash flow analyses.  The discount rates used were based on rates currently offered for deposits with similar remaining maturities.  The fair values of the Company’s certificate deposit accounts do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Federal Home Loan Bank advances

The fair value of Federal Home Loan Bank advances was calculated using a discounted cash flow approach that applies a comparable FHLB advance rate to the weighted average maturity of the borrowings.

Other Financial Instruments

The carrying amounts reported in the consolidated statements of financial condition approximate fair value for the following financial instruments (Level 1):  cash on hand and due from banks, interest-earning deposits in other institutions, Federal Home Loan Bank stock, accrued interest receivable, bank-owned life insurance, demand, regular and club accounts, securities sold under agreements to repurchase and accrued interest payable.  For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization.  For financial liabilities such as interest and noninterest-bearing demand and regular and club accounts, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.  For financial liabilities such as the Company’s securities sold under agreements to repurchase which are with commercial deposit customers, the carrying amount is a reasonable estimate of fair value due to the short time nature of the agreement.

19

STANDARD FINANCIAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (UNAUDITED)

June 30, 2012

(9)  Fair Value of Assets and Liabilities (Continued)

The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2012 and September 30, 2011 (dollars in thousands):

			Fair Value Measurements
			Quoted Prices in		Significant
			Active Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
	Carrying		or Liabilities		Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)
June 30, 2012:
Financial Instruments - Assets:
Cash on hand and due from banks	$	1,891	$	1,891	$	—	$	—
Interest-earning deposits in other institutions	8,627		8,627		—		—
Investment securities	66,194		1,351		64,843		—
Mortgage-backed securities	43,363		—		43,363		—
Loans receivable	292,329		—		—		304,076
Loans held for sale	419		434		—		—
Accrued interest receivable	1,350		1,350
Federal Home Loan Bank stock	2,780		2,780		—		—
Bank-owned life insurance	10,046		10,046		—		—
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,543		186,543		—		—
Certificate deposit accounts	139,151		—		—		146,352
Federal Home Loan Bank advances	31,618		—		—		32,176
Securities sold under agreements to repurchase	2,199		2,199		—		—
Accrued interest payable	281		281		—		—
September 30, 2011:
Financial Instruments - Assets:
Cash on hand and due from banks	$	1,869	$	1,869	$	—	$	—
Interest-earning deposits in other institutions	10,789		10,789		—		—
Investment securities	62,946		1,246		61,700		—
Mortgage-backed securities	42,808		—		42,808		—
Loans receivable	285,113		—		—		297,800
Loans held for sale	100		102		—		—
Accrued interest receivable	1,337		1,337
Federal Home Loan Bank stock	2,839		2,839		—		—
Bank-owned life insurance	9,778		9,778		—		—
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,235		186,235		—		—
Certificate deposit accounts	134,087		—		—		140,482
Federal Home Loan Bank advances	28,520		—		—		29,500
Securities sold under agreements to repurchase	2,897		2,897		—		—
Accrued interest payable	268		268		—		—

20

ITEM 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis provides further detail to the financial condition and results of operations of the Company.  The section should be read in conjunction with the notes and financial statements presented elsewhere in this report.

The Company’s critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of June 30, 2012 have remained unchanged from the disclosures presented in the Company’s Annual Report on Form 10-K for the year ended September 30, 2011 under the section “Management’s Discussion and Analysis of Financial Condition and Results of Operation.”

Forward-looking statements in this report relating to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with the Company’s most recent annual report filed with the Securities and Exchange Commission on Form 10-K for the year ended September 30, 2011.  Investors are cautioned that forward-looking statements include risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements, including without limitation, the effect of regional and national general economic conditions; 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; changes in the financial condition or future prospects of issuers of securities that we own.  The Company does not assume any duty to update forward-looking statements.

Standard Financial Corp. is a Maryland corporation that provides a wide array of retail and commercial financial products and services to individuals, families and businesses through ten banking offices located in the Pennsylvania counties of Allegheny, Westmoreland and Bedford and Allegany County, Maryland through its wholly-owned subsidiary Standard Bank.

Comparison of Financial Condition at June 30, 2012 and September 30, 2011

General.  The Company’s total assets increased $8.1 million, or 1.9%, to $442.7 million at June 30, 2012 from $434.6 million at September 30, 2011.  The increase was due primarily to increases in net loans and investment securities. Total liabilities increased $6.7 million, or 1.9%, to $362.6 million at June 30, 2012 from $355.9 million at September 30, 2011.  The increase was due primarily to increases in certificate of deposit accounts and Federal Home Loan Bank advances.

Cash and Cash Equivalents.  Cash and cash equivalents decreased $2.1 million, or 16.9%, to $10.5 million at June 30, 2012 from $12.7 million at September 30, 2011 due in part to fund increases in loans and investment securities.

Loans.  At June 30, 2012, net loans were $292.3 million, or 66.0% of total assets, an increase of $7.2 million from $285.1 million or 65.6% of total assets at September 30, 2011.  This increase was primarily due to increases of $4.2 million in the commercial real estate and commercial loan portfolios and $1.7 million in the one- to four-family residential real estate portfolio.  We have continued our focus on steadily increasing our commercial real estate loans to better diversify our loan portfolio.

Investment Securities.  Investment securities available for sale increased $3.2 million to $66.2 million at June 30, 2012 from $62.9 million at September 30, 2011.  Purchases of $24.8 million of investment securities during the nine months ended June 30, 2012 consisted primarily of government agency bonds and tax-exempt municipal securities.  The purchases were offset by calls and maturities of government agency bonds and municipal securities totaling $14.9 million and sales of government agency bonds of $6.1 million during the nine months ended June 30, 2012.

Mortgage-Backed Securities.  The Company’s mortgage-backed securities available for sale portfolio increased $555,000 to $43.4 million at June 30, 2012 from $42.8 million at September 30, 2011.  Purchases of mortgage-backed securities during the nine months ended June 30, 2012 totaled $9.5 million partly offset by repayments of mortgage-backed securities of $8.8 million.

Deposits. We accept deposits primarily from the areas in which our offices are located.  We have consistently focused on building broader customer relationships and targeting small business customers to increase our core deposits.  We also rely on our enhanced technology and our customer service to attract and retain deposits.  We offer a variety of deposit accounts with a range of interest rates and terms.  Our deposit accounts consist of savings accounts, certificates of deposit, money market accounts, commercial and regular checking accounts and individual retirement accounts.  We do not accept brokered deposits.  Interest rates, maturity terms, service fees and withdrawal penalties are established on a periodic basis.  Deposit rates and terms are based primarily on current operating strategies and market interest rates, liquidity requirements and our deposit growth goals.

21

Deposits increased $5.4 million, or 1.7%, to $325.7 million at June 30, 2012 from $320.3 million at September 30, 2011.  The increase resulted primarily from a $5.1 million, or 3.8%, increase in certificate of deposit accounts during the nine months ended June 30, 2012.  The increase in certificates of deposit resulted from an increase in longer term certificate products some of which provide the customer an option to increase the interest rate on the certificate in the future.

Borrowings.  Our borrowings consist of advances from the Federal Home Loan Bank of Pittsburgh and funds borrowed under repurchase agreements.  Total borrowings increased $2.4 million, or 7.6%, to $33.8 million at June 30, 2012 from $31.4 million at September 30, 2011.  The increase was due primarily to new Federal Home Loan Bank advances totaling $8.0 million partly offset by the repayment of $4.9 million of advances during the nine months ended June 30, 2012.

Stockholders’ Equity.  Stockholders’ equity increased $1.4 million to $80.1 million at June 30, 2012 from $78.7 million at September 30, 2011.  The increase was due primarily to net income of $2.4 million partly offset by the repurchase of common stock totaling $1.0 million and cash dividends paid totaling $452,000 for the nine months ended June 30, 2012.

22

Average Balance and Yields

The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated.  No tax-equivalent yield adjustments were made, as the effect thereof was not material.  All average balances are daily average balances.  Non-accrual loans were included in the computation of average balances, but have been reflected in the tables as loans carrying a zero yield.  The yields set forth below include the effect of deferred fees, discounts and premiums that are amortized or accreted to interest income or expense.

	For the Three Months Ended June 30,
	2012							2011
	Average Outstanding Balance			Interest		Yield/ Rate		Average Outstanding Balance			Interest		Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans	$	298,455		$	3,617	4.85	%	$	295,502		$	3,918	5.30	%
Investment and mortgage-backed securities	111,472			680		2.44	%	101,789			724		2.85	%
Interest earning deposits	8,301			1		0.05	%	12,190			1		0.03	%
Total interest-earning assets	418,228			4,298		4.11	%	409,481			4,643		4.54	%
Noninterest-earning assets	27,169							28,278
Total assets	$	445,397						$	437,759
Interest-bearing liabilities:
Savings accounts	$	110,305		46		0.17	%	$	120,291		106		0.35	%
Certificates of deposit	139,824			837		2.39	%	125,470			782		2.49	%
Money market accounts	6,260			1		0.06	%	6,076			3		0.20	%
Demand and NOW accounts	71,224			12		0.07	%	62,154			14		0.09	%
Total deposits	327,613			896		1.09	%	313,991			905		1.15	%
Federal Home Loan Bank advances	32,086			194		2.42	%	38,236			283		2.96	%
Securities sold under agreements to repurchase	2,765			1		0.14	%	5,792			4		0.28	%
Total interest-bearing liabilities	362,464			1,091		1.20	%	358,019			1,192		1.33	%
Noninterest-bearing liabilities	3,280							3,297
Total liabilities	365,744							361,316
Stockholders’ equity	79,653							76,443
Total liabilities and stockholders’ equity	$	445,397						$	437,759
Net interest income				$	3,207						$	3,451
Net interest rate spread (1)						2.91	%						3.20	%
Net interest-earning assets (2)	$	55,764						$	51,462
Net interest margin (3)						3.07	%						3.37	%
Average interest-earning assets to interest- bearing liabilities	115.38		%					114.37		%

(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.

23

	For the Nine Months Ended June 30,
	2012							2011
	Average Outstanding Balance			Interest		Yield/ Rate		Average Outstanding Balance			Interest		Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Loans	$	296,041		$	11,121	5.01	%	$	294,674		$	11,856	5.36	%
Investment and mortgage-backed securities	105,660			1,988		2.51	%	97,587			2,074		2.83	%
Interest earning deposits	10,407			4		0.05	%	15,103			7		0.06	%
Total interest-earning assets	412,108			13,113		4.24	%	407,364			13,937		4.56	%
Noninterest-earning assets	28,359							28,555
Total assets	$	440,467						$	435,919
Interest-bearing liabilities:
Savings accounts	$	111,770		155		0.18	%	$	121,415		418		0.46	%
Certificates of deposit	138,691			2,541		2.44	%	124,878			2,391		2.55	%
Money market accounts	6,262			6		0.13	%	6,247			11		0.23	%
Demand and NOW accounts	68,464			36		0.07	%	60,956			43		0.09	%
Total deposits	325,187			2,738		1.12	%	313,496			2,863		1.22	%
Federal Home Loan Bank advances	30,002			575		2.56	%	37,955			888		3.12	%
Securities sold under agreements to repurchase	3,363			5		0.20	%	5,197			13		0.33	%
Total interest-bearing liabilities	358,552			3,318		1.23	%	356,648			3,764		1.41	%
Noninterest-bearing liabilities	2,977							3,763
Total liabilities	361,529							360,411
Stockholders’ equity	78,938							75,508
Total liabilities and stockholders’ equity	$	440,467						$	435,919
Net interest income				$	9,795						$	10,173
Net interest rate spread (1)						3.01	%						3.15	%
Net interest-earning assets (2)	$	53,556						$	50,716
Net interest margin (3)						3.17	%						3.33	%
Average interest-earning assets to interest- bearing liabilities	114.94		%					114.22		%

(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.

24

Comparison of Operating Results for the Three Months Ended June 30, 2012 and 2011

General.  Net income for the quarter ended June 30, 2012 was $764,000 compared to $845,000 for the quarter ended June 30, 2011, a decrease of $81,000, or 9.6%.  The decrease was due primarily to a decrease in net interest income of $244,000, or 7.1%, and an increase in noninterest expenses of $63,000, or 2.6%, partially offset by a $125,000, or 29.4%, decrease in the provision for loan losses and lower income tax expense of $82,000, or 21.1%.

Net Interest Income.  Net interest income for the quarter ended June 30, 2012 was $3.2 million compared to $3.5 million for the quarter ended June 30, 2011.  Our net interest rate spread and net interest margin were 2.91% and 3.07%, respectively for the three months ended June 30, 2012 compared to 3.20% and 3.37% for the same period in the prior year.  The decrease in the net interest rate spread and net interest rate margin was the result of the yield on interest-earning assets declining more than the cost of interest-bearing liabilities.

Interest and Dividend Income.  Total interest and dividend income of $4.3 million for the three months ended June 30, 2012 decreased by $345,000 compared to the same period in the prior year.  The decrease was due to a decrease in the average yield on interest-earning assets, partially offset by an increase in the average balance of interest-earning assets.  The average yield on interest-earning assets decreased to 4.11% for the three months ended June 30, 2012 from 4.54% for the same period in the prior year.  Average interest-earning assets increased by $8.7 million, or 2.1%, to $418.2 million for the three months ended June 30, 2012 from $409.5 million for the same period in 2011.

Interest income on loans decreased $301,000, or 7.7%, to $3.6 million for the three months ended June 30, 2012 due primarily to a decrease in the average yield on loans.  The average yield on loans receivable decreased to 4.85% for the three months ended June 30, 2012 from 5.30% for the same period in the prior year.  The decrease in average yield was primarily attributable to our variable rate loans adjusting downward as prime and short-term interest rates remained low as well as the origination of new loans in a generally lower interest rate environment and repayment/refinance of higher rate loans.  Average loans receivable increased by $3.0 million, or 1.0%, to $298.5 million for the three months ended June 30, 2012 from $295.5 million for the same period in the prior year.

Interest income on investment and mortgage-backed securities decreased by $44,000, or 6.1%, to $680,000 for the three months ended June 30, 2012 from $724,000 for the same period in the prior year.  This decrease was due primarily to a decrease in the average yield earned on investments and mortgage-backed securities to 2.44% for the three months ended June 30, 2012 from 2.85% for the same period in the prior year due to new investments added in a lower interest rate environment and variable rate investments that adjusted downward.  This decrease was partially offset by an increase in the average balance of investment and mortgage-backed securities, which increased by $9.7 million, or 9.5%, to $111.5 million for the three months ended June 30, 2012 from $101.8 million for the same period in the prior year.

Interest Expense.  Total interest expense decreased by $101,000, or 8.5%, to $1.1 million for the three months ended June 30, 2012 from $1.2 million for the same period in the prior year.  This decrease in interest expense was due to a decrease in the average cost of interest-bearing liabilities to 1.20% for the three months ended June 30, 2012 from 1.33% for the prior year period.  Partially offsetting this decrease in interest expense was as an increase in the average balance of interest-bearing liabilities of $4.4 million, or 1.2%, to $362.5 million for the three months ended June 30, 2012 from $358.0 million for the same period in the prior year.

Interest expense on deposits decreased by $9,000, or 1.0%, to $896,000 for the three months ended June 30, 2012 from $905,000 for the same period in the prior year.  The average cost of deposits declined from 1.15% for the three months ended June 30, 2011 to 1.09% for the three months ended June 30, 2012.  The continued low level of market interest rates enabled us to reduce the rates of interest paid on deposit products.  Partially offsetting this decrease in interest expense on deposits was an increase in the average balance of deposits which increased $13.6 million, or 4.3%, to $327.6 million for the three months ended June 30, 2012 from $314.0 million for the same period in 2011.

Interest expense on Federal Home Loan Bank advances decreased $89,000, or 31.4%, to $194,000 for the three months ended June 30, 2012 from $283,000 for the same period in the prior year.  The average balance of advances decreased $6.2 million, or 16.1%, to $32.1 million for the three months ended June 30, 2012 compared to the same period in the prior year.  In addition, the average cost of advances decreased to 2.42% for the quarter ended June 30, 2012 from 2.96% for the quarter ended June 30, 2011 as higher rate advances matured and were repaid.

Provision for Loan Losses.  The provision for loan losses decreased by $125,000 to $300,000 for the three months ended June 30, 2012 from $425,000 for the same period in 2011.  Non-performing loans at June 30, 2012 were $4.1 million or 1.39% of total loans, $4.6 million or 1.60% of total loans at September 30, 2011 and $3.2 million or 1.10% of total loans at June 30, 2011.  The provision that was recorded was sufficient, in management’s judgment, to bring the allowance for loan losses to a level that reflects the losses inherent in our loan portfolio relative to loan mix, economic conditions and historical loss experience.

Noninterest Income.  Noninterest income increased $19,000, or 3.2%, to $615,000 for the three months ended June 30, 2012 from $596,000 for the same period in the prior year due mainly to higher net loan sale gains due to a higher volume of loan sales partly offset by lower annuity and mutual fund fees and service charges due to lower activity or demand.

25

Noninterest Expenses.  Noninterest expenses increased by $63,000, or 2.6%, to $2.5 million for the three months ended June 30, 2012 compared to the same period in 2011.  The increase was due mainly to general cost increases in personnel related expenses.

Income Tax Expense.  The Company recorded a provision for income tax of $307,000 for the three months ended June 30, 2012 compared to $389,000 for the three months ended June 30, 2011 due to lower income before taxes. The effective tax rate declined slightly from 28.7% to 31.5% for the three months ended June 30, 2012 and 2011, respectively, due mainly to a higher level of tax exempt income.

Comparison of Operating Results for the Nine Months Ended June 30, 2012 and 2011

General.  Net income for the nine months ended June 30, 2012 was $2.4 million compared to $1.7 million for the nine months ended June 30, 2011.  Net income for the nine months ended June 30, 2011 included a $1.4 million one-time contribution to Standard Charitable Foundation ($908,000 after tax impact).  This contribution represented $1.2 million or 3.5% of the stock issued on October 6, 2010 and $200,000 in cash.  Excluding the one-time charitable contribution, net income decreased $222,000 for the nine months ended June 30, 2012 compared to the same period in the prior year due primarily to a decrease in net interest income of $378,000, or 3.7%, and an increase in noninterest expenses of $317,000, or 4.5%, partially offset by a lower provision for loan losses of $300,000, or 25%.

Net Interest Income.  Net interest income for the nine months ended June 30, 2012 was $9.8 million compared to $10.2 million for the nine months ended June 30, 2011.  Our net interest rate spread and net interest margin were 3.01% and 3.17%, respectively for the nine months ended June 30, 2012 compared to 3.15% and 3.33% for the same period in the prior year. The decrease in the net interest rate spread and net interest rate margin was the result of the yield on interest-earning assets declining more than the cost of interest-bearing liabilities.

Interest and Dividend Income.  Total interest and dividend income of $13.1 million for the nine months ended June 30, 2012 decreased by $824,000, or 5.9%, compared to the same period in the prior year.  The decrease was due to a decrease in the average yield on interest-earning assets, partially offset by an increase in the average balance of interest-earning assets.  The average yield on interest-earning assets decreased to 4.24% for the nine months ended June 30, 2012 from 4.56% for the same period in the prior year.  Average interest-earning assets increased by $4.7 million, or 1.2%, to $412.1 million for the nine months ended June 30, 2012 from $407.4 million for the same period in 2011.

Interest income on loans decreased $735,000, or 6.2%, to $11.1 million for the nine months ended June 30, 2012 due primarily to a decrease in the average yield on loans.  The average yield on loans receivable decreased to 5.01% for the nine months ended June 30, 2012 from 5.36% for the same period in the prior year.  The decrease in average yield was primarily attributable to our variable rate loans adjusting downward as prime and short-term interest rates remained low as well as the origination of new loans in a generally lower interest rate environment and repayment/refinance of higher rate loans.  Average loans receivable increased by $1.4 million, or 0.5%, to $296.0 million for the nine months ended June 30, 2012 compared to the same period in the prior year.

Interest income on investment and mortgage-backed securities decreased by $86,000, or 4.1%, to $2.0 million for the nine months ended June 30, 2012 from the same period in the prior year.  This decrease was due primarily to a decrease in the average yield earned on investments and mortgage-backed securities to 2.51% for the nine months ended June 30, 2012 from 2.83% for the same period in the prior year due to new investments added in a lower interest rate environment and variable rate investments that adjusted downward.  This decrease was partially offset by an increase in the average balance of investment and mortgage-backed securities, which increased by $8.1 million, or 8.3%, to $105.7 million for the nine months ended June 30, 2012 from $97.6 million for the same period in the prior year.

Interest Expense.  Total interest expense decreased by $446,000, or 11.8%, to $3.3 million for the nine months ended June 30, 2012 from $3.8 million for the same period in the prior year.  This decrease in interest expense was due to a decrease in the average cost of interest-bearing liabilities to 1.23% for the nine months ended June 30, 2012 from 1.41% for the prior year period.  Partially offsetting this decrease was an increase in average interest-bearing liabilities of $1.9 million, or 0.5%, to $358.6 million for the nine months ended June 30, 2012 compared to the same period in the prior year.

Interest expense on deposits decreased by $125,000, or 4.4%, to $2.7 million for the nine months ended June 30, 2012 compared to the same period in the prior year.  The average cost of deposits declined from 1.22% for the nine months ended June 30, 2011 to 1.12% for the nine months ended June 30, 2012.  The continued low level of market interest rates enabled us to reduce the rates of interest paid on deposit products.  Partially offsetting this decrease in interest expense on deposits was an increase in the average balance of deposits which increased $11.7 million, or 3.7%, to $325.2 million for the nine months ended June 30, 2012 from $313.5 million for the same period in 2011.

Interest expense on Federal Home Loan Bank advances decreased $313,000 or 35.2%, to $575,000 for the nine months ended June 30, 2012 from $888,000 for the same period in the prior year.  The average balance of advances decreased $8.0 million or 21.0% to $30.0 million for the nine months ended June 30, 2012 compared to the same period in the prior year.  In addition, the

26

average cost of advances decreased to 2.56% for the nine months ended June 30, 2012 from 3.12% for the nine months ended June 30, 2011 as higher rate advances matured and were repaid.

Provision for Loan Losses.  The provision for loan losses decreased by $300,000, or 25.0%, to $900,000 for the nine months ended June 30, 2012 from $1.2 million for the same period in 2011.  The provision that was recorded was sufficient, in management’s judgment, to bring the allowance for loan losses to a level that reflects the losses inherent in our loan portfolio relative to loan mix, economic conditions and historical loss experience.

Noninterest Income.  Noninterest income increased $51,000, or 2.9%, to $1.8 million for the nine months ended June 30, 2012 compared to the same period in the prior year due mainly to higher net loan and securities sale gains due mainly to a higher volume of loan and security sales, partially offset by lower annuity and mutual fund fees due to lower activity or demand.

Noninterest Expenses.  Noninterest expenses decreased by $1.1 million to $7.4 million for the nine months ended June 30, 2012 compared to the same period in the prior year.  The decrease was due to a $1.4 million one-time contribution to Standard Charitable Foundation during the nine months ended June 30, 2011.  Excluding the one-time charitable contribution, noninterest expenses increased $317,000, or 4.5%, due primarily to increases in compensation and employee benefits and other operating expenses as a result of general cost increases and additional staffing in the lending area.

Income Tax Expense.  The Company recorded a provision for income tax of $937,000 for the nine months ended June 30, 2012 compared to $591,000 for the nine months ended June 30, 2011.  The tax effect of the charitable foundation contribution for the nine months ended June 30, 2011 was a benefit of $468,000.  The effective tax rate declined slightly from 29.0% for the nine months ended June 30, 2011, after adjusting for the charitable foundation contribution, to 28.3% for the nine months ended June 30, 2012 due mainly to a higher level of tax exempt income.

Non-Performing and Problem Assets

There were no loans in arrears 90 days or more and still accruing interest at June 30, 2012.  Loans in arrears 90 days or more or in process of foreclosure (non-accrual loans) were as follows:

				Percentage
	Number of			of Loans
	Loans	Amount		Receivable
	(Dollars in thousands)
June 30, 2012	24	$	4,127	1.39	%
September 30, 2011	26	4,626		1.60

At June 30, 2012 and September 30, 2011, the Company had impaired loans totaling $2.9 million and $3.1 million, respectively.  The largest impaired loan at both dates was a $1.0 million loan representing a 6% interest in a participation loan which was secured by commercial real estate and a mall in West Virginia.  Foreclosure on this loan was initiated by the participating banks but a declaration of bankruptcy by the borrower has caused a delay in this process.  The second largest impaired loan at both dates was a $700,000 loan which was secured by commercial real estate and a restaurant in Maryland.  The borrower on this loan has declared bankruptcy which also delayed foreclosure proceedings.

Liquidity and Capital Resources

Liquidity is the ability to meet current and future financial obligations.  Our primary sources of funds consist of deposit inflows, loan repayments, advances from the Federal Home Loan Bank of Pittsburgh, repurchase agreements and maturities, principal repayments and the sale of available-for-sale securities.  While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.  Our Asset/Liability Management Committee, under the direction of our Chief Financial Officer, is responsible for establishing and monitoring our liquidity targets and strategies in order to ensure that sufficient liquidity exists for meeting the borrowing needs and deposit withdrawals of our customers as well as unanticipated contingencies.  We believe that we have enough sources of liquidity to satisfy our short- and long-term liquidity needs as of June 30, 2012.

At June 30, 2012, we had $15.0 million in loan commitments outstanding of which $13.8 million were for commercial loans and $1.2 million for one- to four-family residential loans.  In addition to commitments to originate loans, we had $13.1 million in unused lines of credit to borrowers and $949,000 in undisbursed funds for construction loans in process.  Certificates of deposit due within one year of June 30, 2012 totaled $33.0 million, or 10.0% of total deposits.  If these deposits do not remain with us, we may be required to seek other sources of funds, including loan and securities sales, repurchase agreements and Federal Home Loan Bank advances.

Current regulatory requirements specify that the Bank and similar institutions must maintain leverage capital equal to 4% of adjusted total assets and risk-based capital equal to 8% of risk-weighted assets.  The Federal Deposit Insurance Corporation (“FDIC”)

27

may require higher core capital ratios if warranted, and institutions are to maintain capital levels consistent with their risk exposures.  The FDIC reserves the right to apply this higher standard to any insured financial institution when considering an institution’s capital adequacy.  At June 30, 2012, Standard Bank was in compliance with all regulatory capital requirements with leverage and risk-based capital ratios of 12.75% and 20.33%, respectively, and was considered “well capitalized” under regulatory guidelines.

ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk

Not applicable to smaller reporting companies.

ITEM 4.  Controls and Procedures

The Company’s management evaluated, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, the effectiveness of the Company’s disclosure controls and procedures, as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

ITEM 1.  Legal Proceedings

At June 30, 2012, the Company is not involved in any pending legal proceedings other than non-material legal proceedings undertaken in the ordinary course of business.

ITEM 1A.  Risk Factors

Not applicable to smaller reporting companies.

 ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth information with respect to purchases made by or on behalf of the Company of shares of common stock of the Company during the indicated periods.

				Total Number	Maximum number
				of Shares	of Shares
	Total Number	Average		Purchased as Part	That May Yet Be
	of Shares	Price Paid		of Publicly Announced	Purchased Under the
Period	Purchased	Per Share		Plans or Programs	Plans or Programs (1)
April 1-30, 2012	—	$	—	—	282,000
May 1-31, 2012	—	—		—	282,000
June 1-30, 2012	2,600	16.20		2,600	279,400
Totals	2,600	$	16.20	2,600

(1)On October 20, 2011, the Company announced that the Board of Directors authorized the repurchase of up to 347,000 shares, or approximately 10%, of the Company’s outstanding common stock.  The stock repurchase program may be carried out through open market purchases, block trades, negotiated private transactions and pursuant to a plan adopted in accordance with Rule 10b5-1 of the SEC’s rules.  The stock will be repurchased on an ongoing basis and will be subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital and the Company’s financial performance.

28

ITEM 3.  Defaults Upon Senior Securities

Not Applicable

ITEM 4.  Mine Safety Disclosures

Not Applicable

ITEM 5.  Other Information

(a)Not Applicable

(b)Not Applicable

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 2002
31.2	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 2002
32.1	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
101.INS	XBRL Instance Document **
101.SCH	XBRL Taxonomy Extension Schema Document **
101.CAL	XBRL Taxonomy Calculation Linkbase Document **
101 DEF	XBRL Taxonomy Extension Definition Linkbase Document **
101 LAB	XBRL Taxonomy Label Linkbase Document **
101.PRE	XBRL Taxonomy Presentation Linkbase Document **

*              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.

**           We have attached these documents formatted in XBRL (Extensible Business Reporting Language) as Exhibit 101 to this report.  We advise users of this data that pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

29

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		STANDARD FINANCIAL CORP.
Signatures	Title		Date
/s/ Timothy K. Zimmerman	President, Chief Executive Officerb and Director (Principal Executive Officer)		August 9, 2012
Timothy K. Zimmerman
/s/ Colleen M. Brown	Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)		August 9, 2012
Colleen M. Brown

30

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Timothy K. Zimmerman, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Standard Financial Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in registrant’s internal control over financial reporting.

August 9, 2012	/s/ Timothy K. Zimmerman
Date	Timothy K. Zimmerman

1

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Colleen M. Brown, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Standard Financial Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2012	/s/ Colleen M. Brown
Date	Colleen M. Brown
	Senior Vice President and Chief Financial Officer

1

EX-32.1

Exhibit 32.1

Certification pursuant to

18 U.S.C. Section 1350,

as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Timothy K. Zimmerman, President and Chief Executive Officer and Colleen M. Brown, Senior Vice President and Chief Financial Officer of Standard Financial Corp. (the “Company”) each certify in their capacity as officers of the Company that they have reviewed the quarterly report of the Company on Form 10-Q for the quarter ended June 30, 2012 and that to the best of their knowledge:

1.the report fully complies with the requirements of Sections 13(a) of the Securities Exchange Act of 1934; and

2.the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 9, 2012	/s/ Timothy K. Zimmerman
Date	Timothy K. Zimmerman
	President and Chief Executive Officer
August 9, 2012	/s/ Colleen M. Brown
Date	Colleen M. Brown
	Senior Vice President and Chief Financial Officer

The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.

A signed original of this written statement required by Section 906 has been provided to Standard Financial Corp. and will be retained by Standard Financial Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

1

XML

Fair Value of Assets and Liabilities (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Financial Instruments - Assets:
Cash on hand and due from banks	$ 1,891	$ 1,869
Interest-earning deposits in other institutions	8,627	10,789
Investment securities	66,194	62,946
Mortgage-backed securities		42,808
Bank-owned life insurance	10,046	9,778
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,543	186,235
Certificate deposit accounts	139,151	134,087
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
Financial Instruments - Assets:
Cash on hand and due from banks	1,891	1,869
Interest-earning deposits in other institutions	8,627	10,789
Investment securities	1,351	1,246
Loans held for sale	434	102
Accrued interest receivable	1,350	1,337
Federal Home Loan Bank stock	2,780	2,839
Bank-owned life insurance	10,046	9,778
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,543	186,235
Securities sold under agreements to repurchase	2,199	2,897
Accrued interest payable	281	268
Significant Other Observable Inputs (Level 2)
Financial Instruments - Assets:
Investment securities	64,843	61,700
Mortgage-backed securities	43,363	42,808
Significant Unobservable Inputs (Level 3)
Financial Instruments - Assets:
Loans receivable	304,076	297,800
Financial Instruments - Liabilities:
Certificate deposit accounts	146,352	140,482
Federal Home Loan Bank advances	32,176	29,500
Carrying Amount
Financial Instruments - Assets:
Cash on hand and due from banks	1,891	1,869
Interest-earning deposits in other institutions	8,627	10,789
Investment securities	66,194	62,946
Mortgage-backed securities	43,363	42,808
Loans receivable	292,329	285,113
Loans held for sale	419	100
Accrued interest receivable	1,350	1,337
Federal Home Loan Bank stock	2,780	2,839
Bank-owned life insurance	10,046	9,778
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,543	186,235
Certificate deposit accounts	139,151	134,087
Federal Home Loan Bank advances	31,618	28,520
Securities sold under agreements to repurchase	2,199	2,897
Accrued interest payable	$ 281	$ 268

XML

Loans Receivable and Related Allowance for Loan Losses (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011
Impaired Loans
Impaired Loans With Allowance, Recorded Investment	$ 2,862,000		$ 2,862,000		$ 3,140,000
Impaired Loans With Allowance, Related Allowance	859,000		859,000		942,000
Total Impaired Loans, Recorded Investment	2,862,000		2,862,000		3,140,000
Total Impaired Loans, Unpaid Principal Balance	2,862,000		2,862,000		3,140,000
Average investment in impaired loans:	2,857,000	2,261,000	2,926,000	2,336,000
Minimum
Impaired Loans
Past due period for considering loans as substandard			90 days
Commercial relationships limit for performing annual loan review			500,000
Commercial
Impaired Loans
Impaired Loans With Allowance, Recorded Investment	477,000		477,000		39,000
Impaired Loans With Allowance, Related Allowance	143,000		143,000		12,000
Total Impaired Loans, Recorded Investment	477,000		477,000		39,000
Total Impaired Loans, Unpaid Principal Balance	477,000		477,000		39,000
Average investment in impaired loans:	545,000	489,000	435,000	823,000
Commercial Real Estate
Impaired Loans
Impaired Loans With Allowance, Recorded Investment	2,385,000		2,385,000		3,101,000
Impaired Loans With Allowance, Related Allowance	716,000		716,000		930,000
Total Impaired Loans, Recorded Investment	2,385,000		2,385,000		3,101,000
Total Impaired Loans, Unpaid Principal Balance	2,385,000		2,385,000		3,101,000
Average investment in impaired loans:	$ 2,312,000	$ 1,772,000	$ 2,491,000	$ 1,513,000

XML

Consolidation

9 Months Ended

Jun. 30, 2012

Consolidation

Consolidation

(1)Consolidation

The accompanying consolidated financial statements include the accounts of Standard Financial Corp. (the “Company”) and its direct and indirect wholly owned subsidiaries, Standard Bank, PaSB (the “Bank”), and Westmoreland Investment Company.  All significant intercompany accounts and transactions have been eliminated in consolidation.

XML

Contribution to Standard Charitable Foundation (Details) (USD $)	3 Months Ended	9 Months Ended
	Dec. 31, 2010	Jun. 30, 2011
Contribution to Standard Charitable Foundation
One-time contribution to Standard Charitable Foundation	$ 1,400,000	$ 1,376,000
Stock contribution to Charitable Foundation	1,200,000	1,176,000
Contribution to Standard Charitable Foundation as a percentage of stock issued	3.50%
Cash contribution to Standard Charitable Foundation	200,000
Contribution to Standard Charitable Foundation, net of tax	908,000
Income tax benefit	$ 468,000

XML

Loans Receivable and Related Allowance for Loan Losses (Details 5) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011
Allowance for loan losses
Balance at the beginning of the period	$ 4,521	$ 3,989
Charge-offs	(1,149)	(732)
Recoveries	66	81
Provision	900	1,200
Balance at the end of the period	4,338	4,538
Evaluated for Impairment:
Individually	859		942
Collectively	3,479		3,579
Balance at the end of the period	4,338	4,538
Real Estate Loans | One-to-four-family Residential and Construction
Allowance for loan losses
Balance at the beginning of the period	682	609
Charge-offs	(235)	(109)
Recoveries		12
Provision	200	397
Balance at the end of the period	647	909
Evaluated for Impairment:
Collectively	647		682
Balance at the end of the period	647	909
Real Estate Loans | Commercial Real Estate
Allowance for loan losses
Balance at the beginning of the period	3,024	2,460
Charge-offs	(185)	(476)
Recoveries	59	31
Provision		679
Balance at the end of the period	2,898	2,694
Evaluated for Impairment:
Individually	716		930
Collectively	2,182		2,094
Balance at the end of the period	2,898	2,694
Real Estate Loans | Home Equity Loans and Lines of Credit
Allowance for loan losses
Balance at the beginning of the period	173	220
Charge-offs	(32)	(26)
Provision	50	28
Balance at the end of the period	191	222
Evaluated for Impairment:
Collectively	191		173
Balance at the end of the period	191	222
Commercial
Allowance for loan losses
Balance at the beginning of the period	452	483
Charge-offs	(688)	(85)
Recoveries	4	26
Provision	650	56
Balance at the end of the period	418	480
Evaluated for Impairment:
Individually	143		12
Collectively	275		440
Balance at the end of the period	418	480
Other Loans
Allowance for loan losses
Balance at the beginning of the period	190	217
Charge-offs	(9)	(36)
Recoveries	3	12
Provision		40
Balance at the end of the period	184	233
Evaluated for Impairment:
Collectively	184		190
Balance at the end of the period	$ 184	$ 233

XML

Employee Stock Ownership Plan (Details) (USD $)	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Employee Stock Ownership Plan
Number of years of service to be completed to participate in the plan	1 year
Employees vesting rate in ESOP account after two years of service (as a percent)	20.00%
Employees vesting rate in ESOP account after three years of service (as a percent)	40.00%
Employees vesting rate in ESOP account after four years of service (as a percent)	60.00%
Employees vesting rate in ESOP account after five years of service (as a percent)	80.00%
Employees vesting rate in ESOP account after six years of service (as a percent)	100.00%
Stock purchased by the ESOP, funded by loan (in shares)	278,254
Compensation expense related to the ESOP	$ 169,000	$ 162,000
Total shares held by ESOP	278,254
Unallocated shares	260,186
Fair market value of the unallocated ESOP shares	$ 4,200,000

XML

Fair Value of Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Assets measured at fair value
Total investment securities available for sale	$ 66,194	$ 62,946
Mortgage-backed securities available for sale		42,808
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
Assets measured at fair value
Total investment securities available for sale	1,351	1,246
Significant Other Observable Inputs (Level 2)
Assets measured at fair value
Total investment securities available for sale	64,843	61,700
Mortgage-backed securities available for sale	43,363	42,808
Recurring basis | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
Assets measured at fair value
Total investment securities available for sale	1,351	1,246
Assets	1,351	1,246
Recurring basis | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Equity securities
Assets measured at fair value
Total investment securities available for sale	1,351	1,246
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets measured at fair value
Total investment securities available for sale	64,843	61,700
Mortgage-backed securities available for sale	43,363	42,808
Assets	108,206	104,508
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government and agency obligations
Assets measured at fair value
Total investment securities available for sale	25,154	24,654
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds
Assets measured at fair value
Total investment securities available for sale	7,033	7,066
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal obligations
Assets measured at fair value
Total investment securities available for sale	32,656	29,980
Recurring basis | Total
Assets measured at fair value
Total investment securities available for sale	66,194	62,946
Mortgage-backed securities available for sale	43,363	42,808
Assets	109,557	105,754
Recurring basis | Total | U.S. government and agency obligations
Assets measured at fair value
Total investment securities available for sale	25,154	24,654
Recurring basis | Total | Corporate bonds
Assets measured at fair value
Total investment securities available for sale	7,033	7,066
Recurring basis | Total | Municipal obligations
Assets measured at fair value
Total investment securities available for sale	32,656	29,980
Recurring basis | Total | Equity securities
Assets measured at fair value
Total investment securities available for sale	1,351	1,246
Nonrecurring basis | Significant Unobservable Inputs (Level 3)
Assets measured at fair value
Assets	2,563	2,941
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Foreclosed real estate
Assets measured at fair value
Assets	560	743
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans
Assets measured at fair value
Assets	2,003	2,198
Nonrecurring basis | Total
Assets measured at fair value
Assets	2,563	2,941
Nonrecurring basis | Total | Foreclosed real estate
Assets measured at fair value
Assets	560	743
Nonrecurring basis | Total | Impaired loans
Assets measured at fair value
Assets	$ 2,003	$ 2,198

XML

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash Flows from Operating Activities
Net income	$ 2,377	$ 1,691
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	316	294
Provision for loan losses	900	1,200
Amortization of core deposit intangible	126	126
Net amortization of premium/discount on securities	231	240
Net gain on securities	(55)	(2)
Origination of loans held for sale	(5,166)	(3,294)
Proceeds from sale of loans held for sale	4,975	3,701
Gain on sale of loans held for sale	(128)	(70)
Compensation expense on ESOP	169	162
Stock contribution to Charitable Foundation		1,176
Deferred income taxes	200	(623)
Decrease (increase) in accrued interest and other assets	372	(163)
Decrease in prepaid Federal deposit insurance	199	273
Earnings on bank-owned life insurance	(299)	(294)
Increase (decrease) in accrued interest payable	13	(40)
(Decrease) increase in other accrued expenses	(141)	451
Increase in accrued income taxes payable	120	13
Other, net	105	133
Net Cash Provided by Operating Activities	4,314	4,974
Cash Flows from Investing Activities
Net increase in loans	(8,987)	(5,137)
Purchases of investment securities	(24,770)	(30,911)
Purchases of mortgage-backed securities	(9,510)	(27,977)
Proceeds from maturities/principal repayments/calls of: Investment securities	14,872	27,559
Proceeds from maturities/principal repayments/calls of: Mortgage-backed securities	8,769	6,000
Proceeds from sales of investment securities	6,110	504
Redemption of Federal Home Loan Bank stock	277	488
Purchases of Federal Home Loan Bank stock	(218)	(60)
Proceeds from sales of foreclosed real estate	981	383
Net purchases of office properties and equipment	(344)	(452)
Net Cash Used in Investing Activities	(12,820)	(29,603)
Cash Flows from Financing Activities
Net increase (decrease) in demand, regular and club accounts	308	(1,400)
Net increase in certificate accounts	5,064	711
Net (decrease) increase in securities sold under agreements to repurchase	(698)	990
Stock proceeds less conversion expenses		457
Purchase of ESOP shares		(1,168)
Repayments of Federal Home Loan Bank advances	(4,904)	(8,633)
Proceeds from Federal Home Loan Bank advances	8,002	7,752
Net increase in advance deposits by borrowers for taxes and insurance	69	213
Dividends paid	(452)
Stock repurchases	(1,023)
Net Cash Provided (Used) by Financing Activities	6,366	(1,078)
Net Decrease in Cash and Cash Equivalents	(2,140)	(25,707)
Cash and Cash Equivalents - Beginning	12,658	38,988
Cash and Cash Equivalents - Ending	10,518	13,281
Supplementary Cash Flows Information
Interest paid	3,305	3,804
Income taxes paid	617	1,204
Supplementary Schedule of Noncash Investing and Financing Activities
Foreclosed real estate acquired in settlement of loans	871	130
Issuance of common stock from stock subscription payable		28,759
Issuance of common stock from customer deposit accounts		1,201
Issuance of common stock for ESOP plan		1,782
Securities purchased not settled		$ 1,160

XML

Fair Value of Assets and Liabilities (Details 2) (Significant Unobservable Inputs (Level 3), USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012
Foreclosed real estate | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Estimate	560
Foreclosed real estate | Minimum | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	0.00%
Liquidation expenses (as a percent)	0.00%
Foreclosed real estate | Maximum | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	(40.00%)
Liquidation expenses (as a percent)	(10.00%)
Foreclosed real estate | Weighted average | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	(25.00%)
Liquidation expenses (as a percent)	(5.00%)
Impaired loans | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Estimate	2,003
Impaired loans | Minimum | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	0.00%
Liquidation expenses (as a percent)	0.00%
Impaired loans | Minimum | Fair value of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	0.00%
Liquidation expenses (as a percent)	0.00%
Impaired loans | Maximum | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	(40.00%)
Liquidation expenses (as a percent)	(10.00%)
Impaired loans | Maximum | Fair value of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	(40.00%)
Liquidation expenses (as a percent)	(10.00%)
Impaired loans | Weighted average | Appraisal of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	(25.00%)
Liquidation expenses (as a percent)	(5.00%)
Impaired loans | Weighted average | Fair value of collateral
Additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value
Appraisal adjustments (as a percent)	(25.00%)
Liquidation expenses (as a percent)	(5.00%)

XML

Consolidated Statements of Financial Condition (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
ASSETS
Cash on hand and due from banks	$ 1,891	$ 1,869
Interest-earning deposits in other institutions	8,627	10,789
Cash and Cash Equivalents	10,518	12,658
Investment securities available for sale, at fair value	66,194	62,946
Mortgage-backed securities available for sale, at fair value	43,363	42,808
Federal Home Loan Bank stock, at cost	2,780	2,839
Loans receivable, net of allowance for loan losses of $4,338 and $4,521	292,329	285,113
Loans held for sale	419	100
Foreclosed real estate	560	743
Office properties and equipment, at cost, less accumulated depreciation	3,931	3,903
Bank-owned life insurance	10,046	9,778
Goodwill	8,769	8,769
Core deposit intangible	561	687
Prepaid federal deposit insurance	647	846
Accrued interest and other assets	2,586	3,429
TOTAL ASSETS	442,703	434,619
Deposits:
Demand, regular and club accounts	186,543	186,235
Certificate accounts	139,151	134,087
Total Deposits	325,694	320,322
Federal Home Loan Bank advances	31,618	28,520
Securities sold under agreements to repurchase	2,199	2,897
Advance deposits by borrowers for taxes and insurance	657	588
Securities purchased not settled		993
Accrued interest and other expenses	2,455	2,583
TOTAL LIABILITIES	362,623	355,903
Stockholders' Equity
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized, none issued
Common stock, $0.01 par value per share, 40,000,000 shares authorized, 3,410,573 and 3,478,173 shares outstanding, respectively	34	35
Additional paid-in-capital	32,435	33,403
Retained earnings	48,400	46,475
Unearned Employee Stock Ownership Plan (ESOP) shares	(2,682)	(2,797)
Accumulated other comprehensive income	1,893	1,600
TOTAL STOCKHOLDERS' EQUITY	80,080	78,716
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 442,703	$ 434,619

XML

Consolidated Statement of Changes in Stockholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Unearned ESOP Shares	Accumulated Other Comprehensive Income
Balance at Sep. 30, 2011	$ 78,716	$ 35	$ 33,403	$ 46,475	$ (2,797)	$ 1,600
Increase (Decrease) in Stockholders' Equity
Net income	2,377			2,377
Other comprehensive income	293					293
Stock repurchases (67,600 shares)	(1,023)	(1)	(1,022)
Cash dividends ($0.135 per share)	(452)			(452)
Compensation expense on ESOP	169		54		115
Balance at Jun. 30, 2012	$ 80,080	$ 34	$ 32,435	$ 48,400	$ (2,682)	$ 1,893

XML

Investment Securities (Details) (USD $)	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Sep. 30, 2011
Investment securities available for sale
Fair Value	$ 66,194,000		$ 62,946,000
Proceeds, gains and losses on sale of investment securities available for sale
Gains on sales of investment securities	55,000	2,000
Proceeds from sales of investment securities	6,110,000	504,000
Investment securities available for sale
Investment securities available for sale
Amortized Cost	64,388,000		61,561,000
Gross Unrealized Gains	2,094,000		1,612,000
Gross Unrealized Losses	(288,000)		(227,000)
Fair Value	66,194,000		62,946,000
Proceeds, gains and losses on sale of investment securities available for sale
Gains on sales of investment securities	55,000	2,000
Proceeds from sales of investment securities	6,100,000	504,000
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	3,016,000		2,018,000
Less than 12 Months, Gross Unrealized Losses	(14,000)		(83,000)
12 Months or More, Fair Value	5,816,000		3,936,000
12 Months or More, Gross Unrealized Losses	(274,000)		(144,000)
Total, Fair Value	8,832,000		5,954,000
Total, Gross Unrealized Losses	(288,000)		(227,000)
Number of securities held in an unrealized loss position	14		16
U.S. government and agency obligations
Amortized Cost
Beyond 1 year but within 5 years	17,993,000		21,493,000
Beyond 5 years but within 10 years	7,000,000		3,000,000
Gross Unrealized Gains
Beyond 1 year but within 5 years	121,000		151,000
Beyond 5 years but within 10 years	41,000		10,000
Gross Unrealized Losses
Beyond 5 years but within 10 years	(1,000)
Fair Value
Beyond 1 year but within 5 years	18,114,000		21,644,000
Beyond 5 years but within 10 years	7,040,000		3,010,000
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	1,999,000
Less than 12 Months, Gross Unrealized Losses	(1,000)
Total, Fair Value	1,999,000
Total, Gross Unrealized Losses	(1,000)
Corporate bonds
Amortized Cost
Within 1 year	251,000
Beyond 1 year but within 5 years	7,002,000		7,255,000
Gross Unrealized Gains
Within 1 year	6,000
Beyond 1 year but within 5 years	35,000		9,000
Gross Unrealized Losses
Beyond 1 year but within 5 years	(261,000)		(198,000)
Fair Value
Within 1 year	257,000
Beyond 1 year but within 5 years	6,776,000		7,066,000
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value			1,925,000
Less than 12 Months, Gross Unrealized Losses			(74,000)
12 Months or More, Fair Value	5,739,000		3,876,000
12 Months or More, Gross Unrealized Losses	(261,000)		(124,000)
Total, Fair Value	5,739,000		5,801,000
Total, Gross Unrealized Losses	(261,000)		(198,000)
Municipal obligations
Amortized Cost
Within 1 year	680,000		4,172,000
Beyond 1 year but within 5 years	2,543,000		1,270,000
Beyond 5 years but within 10 years	21,935,000		14,255,000
Beyond 10 years	5,739,000		8,898,000
Gross Unrealized Gains
Within 1 year	1,000		15,000
Beyond 1 year but within 5 years	143,000		5,000
Beyond 5 years but within 10 years	1,255,000		716,000
Beyond 10 years	371,000		649,000
Gross Unrealized Losses
Beyond 5 years but within 10 years	(11,000)
Fair Value
Within 1 year	681,000		4,187,000
Beyond 1 year but within 5 years	2,686,000		1,275,000
Beyond 5 years but within 10 years	23,179,000		14,971,000
Beyond 10 years	6,110,000		9,547,000
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	983,000
Less than 12 Months, Gross Unrealized Losses	(11,000)
Total, Fair Value	983,000
Total, Gross Unrealized Losses	(11,000)
Equity securities
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	34,000		93,000
Less than 12 Months, Gross Unrealized Losses	(2,000)		(9,000)
12 Months or More, Fair Value	77,000		60,000
12 Months or More, Gross Unrealized Losses	(13,000)		(20,000)
Total, Fair Value	111,000		153,000
Total, Gross Unrealized Losses	(15,000)		(29,000)
CRA Investment Fund
Investment securities available for sale
Amortized Cost	750,000		750,000
Gross Unrealized Gains	25,000		21,000
Fair Value	775,000		771,000
Freddie Mac common stock
Investment securities available for sale
Amortized Cost	10,000		10,000
Gross Unrealized Losses	(1,000)		(2,000)
Fair Value	9,000		8,000
Other common stocks
Investment securities available for sale
Amortized Cost	485,000		458,000
Gross Unrealized Gains	96,000		36,000
Gross Unrealized Losses	(14,000)		(27,000)
Fair Value	$ 567,000		$ 467,000

XML

Loans Receivable and Related Allowance for Loan Losses (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012 item	Sep. 30, 2011
Primary segments of the loan portfolio
Total loans before allowance for loan losses	$ 296,667	$ 289,634
Individually evaluated for impairment	2,862	3,140
Collectively evaluated for impairment	293,805	286,494
Number of categories	3
Minimum
Primary segments of the loan portfolio
Past due period for impairment evaluation	90 days
One-to-four-family Residential and Construction
Primary segments of the loan portfolio
Total loans before allowance for loan losses	143,606	141,869
Commercial Real Estate
Primary segments of the loan portfolio
Total loans before allowance for loan losses	91,884	88,096
Home Equity Loans and Lines of Credit
Primary segments of the loan portfolio
Total loans before allowance for loan losses	46,832	45,594
Real Estate Loans | One-to-four-family Residential and Construction
Primary segments of the loan portfolio
Total loans before allowance for loan losses	143,606	141,869
Collectively evaluated for impairment	143,606	141,869
Real Estate Loans | Commercial Real Estate
Primary segments of the loan portfolio
Total loans before allowance for loan losses	91,884	88,096
Individually evaluated for impairment	2,385	3,101
Collectively evaluated for impairment	89,499	84,995
Real Estate Loans | Home Equity Loans and Lines of Credit
Primary segments of the loan portfolio
Total loans before allowance for loan losses	46,832	45,594
Collectively evaluated for impairment	46,832	45,594
Commercial
Primary segments of the loan portfolio
Total loans before allowance for loan losses	12,072	11,683
Individually evaluated for impairment	477	39
Collectively evaluated for impairment	11,595	11,644
Other Loans
Primary segments of the loan portfolio
Total loans before allowance for loan losses	2,273	2,392
Collectively evaluated for impairment	$ 2,273	$ 2,392

XML

Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $)	9 Months Ended
	Jun. 30, 2012
Consolidated Statement of Changes in Stockholders' Equity
Stock repurchases, shares	67,600
Cash dividends, per share	$ 0.135

XML

Consolidated Statements of Financial Condition (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Consolidated Statements of Financial Condition
Loans receivable, allowance for loan losses (in dollars)	$ 4,338	$ 4,521
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares outstanding	3,410,573	3,478,173

XML

Fair Value of Assets and Liabilities

9 Months Ended

Jun. 30, 2012

Fair Value of Assets and Liabilities

Fair Value of Assets and Liabilities

(9)  Fair Value of Assets and Liabilities

Fair Value Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date.  GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level 1:	Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.  A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.  A contractually binding sales price also provides reliable evidence of fair value.
Level 2:	Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market.
Level 3:	Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that requires significant management judgment or estimation, some of which may be internally developed.

Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements.  Management reviews and updates the fair value hierarchy classifications of the Company’s assets and liabilities on a quarterly basis.

Assets Measured at Fair Value on a Recurring Basis

Investment and Mortgage-Backed Securities Available for Sale

Fair values of investment and mortgage-backed securities available for sale were primarily measured using information from a third-party pricing service.  This service provides pricing information by utilizing evaluated pricing models supported with market data information.  Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data from market research publications.  Level 1 securities are comprised of equity securities.  As quoted prices were available, unadjusted, for identical securities in active markets, these securities were classified as Level 1 measurements.  Level 2 securities were primarily comprised of debt securities issued by government agencies, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies.  Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models.  In cases where there may be limited or less transparent information provided by the Company’s third-party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third-party broker quotes.

On a quarterly basis, management reviews the pricing information received from the Company’s third-party pricing service.  This review process includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the Company’s third-party pricing service.  Management primarily identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets.  Securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs.  As of June 30, 2012 and September 30, 2011, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid or inactive markets.  On a quarterly basis, management also reviews a sample of securities priced by the Company’s third-party pricing service to review significant assumptions and valuation methodologies used.  Based on this review, management determines whether the current placement of the security in the fair value hierarchy is appropriate or whether transfers may be warranted.

The following table presents the assets measured at fair value on a recurring basis as of June 30, 2012 and September 30, 2011 by level within the fair value hierarchy (dollars in thousands):

	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	or Liabilities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2012:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	25,154	$	—	$	25,154
Corporate bonds	—		7,033		—		7,033
Municipal obligations	—		32,656		—		32,656
Equity securities	1,351		—		—		1,351
Total investment securities available for sale	1,351		64,843		—		66,194
Mortgage-backed securities available for sale	—		43,363		—		43,363
Total recurring fair value measurements	$	1,351	$	108,206	$	—	$	109,557
September 30, 2011:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	24,654	$	—	$	24,654
Corporate bonds	—		7,066		—		7,066
Municipal obligations	—		29,980		—		29,980
Equity securities	1,246		—		—		1,246
Total investment securities available for sale	1,246		61,700		—		62,946
Mortgage-backed securities	—		42,808		—		42,808
Total recurring fair value measurements	$	1,246	$	104,508	$	—	$	105,754

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the assets measured at fair value on a nonrecurring basis as of June 30, 2012 and September 30, 2011 by level within the fair value hierarchy (dollars in thousands):

	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	or Liabilities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2012:
Foreclosed real estate	$	—	$	—	$	560	$	560
Impaired loans	—		—		2,003		2,003
Total nonrecurring fair value measurements	$	—	$	—	$	2,563	$	2,563
September 30, 2011:
Foreclosed real estate	$	—	$	—	$	743	$	743
Impaired loans	—		—		2,198		2,198
Total nonrecurring fair value measurements	$	—	$	—	$	2,941	$	2,941

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses level 3 inputs to determine fair value (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements
			Valuation	Unobservable	Range
June 30, 2012:	Estimate		Techniques	Input	(Weighted Average)
Foreclosed real estate	$	560	Appraisal of	Appraisal adjustments (2)	0% to -40% (-25%)
			collateral (1)	Liquidation expenses (2)	0% to -10% (-5%)
Impaired loans	$	2,003	Fair value of	Appraisal adjustments (2)	0% to -40% (-25%)
			collateral (1), (3)	Liquidation expenses (2)	0% to -10% (-5%)

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3)Includes qualitative adjustments by management and estimated liquidation expenses.

Disclosures about Fair Value of Financial Instruments

The assumptions used below are expected to approximate those that market participants would use in valuing the following financial instruments.

Loans Receivable and Loans Held for Sale

The fair value of the Company’s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.  Loans were first segregated by type such as commercial, real estate, and home equity, and were then further segmented into fixed and variable rate and loan quality categories.  Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments.  The fair value of loans held for sale was estimated based on the price committed to sell the loan in the secondary market.

Certificate Deposit Accounts

The fair values of the Company’s certificate deposit accounts were estimated using discounted cash flow analyses.  The discount rates used were based on rates currently offered for deposits with similar remaining maturities.  The fair values of the Company’s certificate deposit accounts do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Federal Home Loan Bank advances

The fair value of Federal Home Loan Bank advances was calculated using a discounted cash flow approach that applies a comparable FHLB advance rate to the weighted average maturity of the borrowings.

Other Financial Instruments

The carrying amounts reported in the consolidated statements of financial condition approximate fair value for the following financial instruments (Level 1):  cash on hand and due from banks, interest-earning deposits in other institutions, Federal Home Loan Bank stock, accrued interest receivable, bank-owned life insurance, demand, regular and club accounts, securities sold under agreements to repurchase and accrued interest payable.  For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization.  For financial liabilities such as interest and noninterest-bearing demand and regular and club accounts, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.  For financial liabilities such as the Company’s securities sold under agreements to repurchase which are with commercial deposit customers, the carrying amount is a reasonable estimate of fair value due to the short time nature of the agreement.

The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2012 and September 30, 2011 (dollars in thousands):

			Fair Value Measurements
			Quoted Prices in		Significant
			Active Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
	Carrying		or Liabilities		Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)
June 30, 2012:
Financial Instruments - Assets:
Cash on hand and due from banks	$	1,891	$	1,891	$	—	$	—
Interest-earning deposits in other institutions	8,627		8,627		—		—
Investment securities	66,194		1,351		64,843		—
Mortgage-backed securities	43,363		—		43,363		—
Loans receivable	292,329		—		—		304,076
Loans held for sale	419		434		—		—
Accrued interest receivable	1,350		1,350
Federal Home Loan Bank stock	2,780		2,780		—		—
Bank-owned life insurance	10,046		10,046		—		—
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,543		186,543		—		—
Certificate deposit accounts	139,151		—		—		146,352
Federal Home Loan Bank advances	31,618		—		—		32,176
Securities sold under agreements to repurchase	2,199		2,199		—		—
Accrued interest payable	281		281		—		—
September 30, 2011:
Financial Instruments - Assets:
Cash on hand and due from banks	$	1,869	$	1,869	$	—	$	—
Interest-earning deposits in other institutions	10,789		10,789		—		—
Investment securities	62,946		1,246		61,700		—
Mortgage-backed securities	42,808		—		42,808		—
Loans receivable	285,113		—		—		297,800
Loans held for sale	100		102		—		—
Accrued interest receivable	1,337		1,337
Federal Home Loan Bank stock	2,839		2,839		—		—
Bank-owned life insurance	9,778		9,778		—		—
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,235		186,235		—		—
Certificate deposit accounts	134,087		—		—		140,482
Federal Home Loan Bank advances	28,520		—		—		29,500
Securities sold under agreements to repurchase	2,897		2,897		—		—
Accrued interest payable	268		268		—		—

XML

Document and Entity Information	9 Months Ended
	Jun. 30, 2012	Aug. 01, 2012
Document and Entity Information
Entity Registrant Name	Standard Financial Corp.
Entity Central Index Key	0001492915
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,511,173
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

XML

Investment Securities (Tables) (Investment securities available for sale)

9 Months Ended

Jun. 30, 2012

Investment securities available for sale

Investment Securities

Schedule of investment securities available for sale

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2012:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	17,993	$	121	$	—		$	18,114
Beyond 5 years but within 10 years	7,000		41		(1		)	7,040
Corporate bonds due:
Within 1 year	251		6		—			257
Beyond 1 year but within 5 years	7,002		35		(261		)	6,776
Municipal obligations due:
Within 1 year	680		1		—			681
Beyond 1 year but within 5 years	2,543		143		—			2,686
Beyond 5 years but within 10 years	21,935		1,255		(11		)	23,179
Beyond 10 years	5,739		371		—			6,110
Equity securities:
CRA Investment Fund	750		25		—			775
Freddie Mac common stock	10		—		(1		)	9
Other common stocks	485		96		(14		)	567
	$	64,388	$	2,094	$	(288	)	$	66,194

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2011:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	21,493	$	151	$	—		$	21,644
Beyond 5 years but within 10 years	3,000		10		—			3,010
Corporate bonds due:
Beyond 1 year but within 5 years	7,255		9		(198		)	7,066
Municipal obligations due:
Within 1 year	4,172		15		—			4,187
Beyond 1 year but within 5 years	1,270		5		—			1,275
Beyond 5 years but within 10 years	14,255		716		—			14,971
Beyond 10 years	8,898		649		—			9,547
Equity securities:
CRA Investment Fund	750		21		—			771
Freddie Mac common stock	10		—		(2		)	8
Other common stocks	458		36		(27		)	467
	$	61,561	$	1,612	$	(227	)	$	62,946

Schedule of fair value and gross unrealized losses on investment securities and the length of time the securities have been in a continuous unrealized loss position

	June 30, 2012
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. government and agency obligations	$	1,999	$	(1	)	$	—	$	—		$	1,999	$	(1	)
Corporate bonds	—		—			5,739		(261		)	5,739		(261		)
Municipal obligations	983		(11		)	—		—			983		(11		)
Equity securities	34		(2		)	77		(13		)	111		(15		)
Total	$	3,016	$	(14	)	$	5,816	$	(274	)	$	8,832	$	(288	)

	September 30, 2011
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Corporate bonds	$	1,925	$	(74	)	$	3,876	$	(124	)	$	5,801	$	(198	)
Equity securities	93		(9		)	60		(20		)	153		(29		)
Total	$	2,018	$	(83	)	$	3,936	$	(144	)	$	5,954	$	(227	)

XML

Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Interest and Dividend Income
Loans, including fees	$ 3,617	$ 3,918	$ 11,121	$ 11,856
Mortgage-backed securities	282	350	832	939
Investments:
Taxable	183	219	549	680
Tax-exempt	215	155	607	455
Interest-earning deposits	1	1	4	7
Total Interest and Dividend Income	4,298	4,643	13,113	13,937
Interest Expense
Deposits	896	905	2,738	2,863
Securities sold under agreements to repurchase	1	4	5	13
Federal Home Loan Bank advances	194	283	575	888
Total Interest Expense	1,091	1,192	3,318	3,764
Net Interest Income	3,207	3,451	9,795	10,173
Provision for Loan Losses	300	425	900	1,200
Net Interest Income after Provision for Loan Losses	2,907	3,026	8,895	8,973
Noninterest Income
Service charges	388	401	1,195	1,208
Earnings on bank-owned life insurance	99	100	299	294
Net securities gains			55	2
Net loan sale gains	85	10	128	70
Annuity and mutual fund fees	38	79	102	149
Other income	5	6	21	26
Total Noninterest Income	615	596	1,800	1,749
Noninterest Expenses
Compensation and employee benefits	1,446	1,383	4,306	4,111
Data processing	103	96	326	285
Premises and occupancy costs	279	259	818	741
Core deposit amortization	42	42	126	126
Automatic teller machine expense	75	82	235	231
Federal deposit insurance	69	80	217	299
Contribution to Standard Charitable Foundation				1,376
Other operating expenses	437	446	1,353	1,271
Total Noninterest Expenses	2,451	2,388	7,381	8,440
Income before Income Tax Expense	1,071	1,234	3,314	2,282
Income Tax Expense
Federal	257	325	791	472
State	50	64	146	119
Total Income Tax Expense	307	389	937	591
Net Income	$ 764	$ 845	$ 2,377	$ 1,691
Earnings Per Share:
Basic earnings per common share (in dollars per share)	$ 0.24	$ 0.26	$ 0.75	$ 0.53
Cash dividends paid per common share (in dollars per share)	$ 0.045		$ 0.135
Weighted average shares outstanding (in shares)	3,158,685	3,209,516	3,173,589	3,205,889

XML

Investment Securities (Investment securities available for sale)

9 Months Ended

Jun. 30, 2012

Investment securities available for sale

Investment Securities

Investment Securities

(4)Investment Securities

Investment securities available for sale at June 30, 2012 and at September 30, 2011 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2012:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	17,993	$	121	$	—		$	18,114
Beyond 5 years but within 10 years	7,000		41		(1		)	7,040
Corporate bonds due:
Within 1 year	251		6		—			257
Beyond 1 year but within 5 years	7,002		35		(261		)	6,776
Municipal obligations due:
Within 1 year	680		1		—			681
Beyond 1 year but within 5 years	2,543		143		—			2,686
Beyond 5 years but within 10 years	21,935		1,255		(11		)	23,179
Beyond 10 years	5,739		371		—			6,110
Equity securities:
CRA Investment Fund	750		25		—			775
Freddie Mac common stock	10		—		(1		)	9
Other common stocks	485		96		(14		)	567
	$	64,388	$	2,094	$	(288	)	$	66,194

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2011:
U.S. government and agency obligations due:
Beyond 1 year but within 5 years	$	21,493	$	151	$	—		$	21,644
Beyond 5 years but within 10 years	3,000		10		—			3,010
Corporate bonds due:
Beyond 1 year but within 5 years	7,255		9		(198		)	7,066
Municipal obligations due:
Within 1 year	4,172		15		—			4,187
Beyond 1 year but within 5 years	1,270		5		—			1,275
Beyond 5 years but within 10 years	14,255		716		—			14,971
Beyond 10 years	8,898		649		—			9,547
Equity securities:
CRA Investment Fund	750		21		—			771
Freddie Mac common stock	10		—		(2		)	8
Other common stocks	458		36		(27		)	467
	$	61,561	$	1,612	$	(227	)	$	62,946

During the nine months ended June 30, 2012, gains on sales of investment securities were $55,000 and proceeds from such sales were $6.1 million.  During the nine months ended June 30, 2011, gains on sales of investment securities were $2,000 and proceeds from such sales were $ 504,000.  During the three months ended June 30, 2012 and 2011, there were no sales of investment securities.

The following table shows the fair value and gross unrealized losses on investment securities and the length of time that the securities have been in a continuous unrealized loss position at June 30, 2012 and at September 30, 2011 (dollars in thousands):

	June 30, 2012
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. government and agency obligations	$	1,999	$	(1	)	$	—	$	—		$	1,999	$	(1	)
Corporate bonds	—		—			5,739		(261		)	5,739		(261		)
Municipal obligations	983		(11		)	—		—			983		(11		)
Equity securities	34		(2		)	77		(13		)	111		(15		)
Total	$	3,016	$	(14	)	$	5,816	$	(274	)	$	8,832	$	(288	)

	September 30, 2011
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Corporate bonds	$	1,925	$	(74	)	$	3,876	$	(124	)	$	5,801	$	(198	)
Equity securities	93		(9		)	60		(20		)	153		(29		)
Total	$	2,018	$	(83	)	$	3,936	$	(144	)	$	5,954	$	(227	)

At June 30, 2012 and September 30, 2011, the Company held 14 and 16 securities, respectively, in an unrealized loss position.  The decline in the fair value of these securities resulted primarily from interest rate fluctuations.  The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before their anticipated recovery, and the Company believes the collection of the investment and related interest is probable.  Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses.

XML

Recent Accounting Pronouncements

9 Months Ended

Jun. 30, 2012

Recent Accounting Pronouncements

Recent Accounting Pronouncements

(3)Recent Accounting Pronouncements

In December 2011, the FASB issued ASU 2011-10, Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate-a Scope Clarification.  The amendments in this Update affect entities that cease to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt. Under the amendments in this Update, when a parent (reporting entity) ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s nonrecourse debt, the reporting entity should apply the guidance in Subtopic 360-20 to determine whether it should derecognize the in substance real estate. Generally, a reporting entity would not satisfy the requirements to derecognize the in substance real estate before the legal transfer of the real estate to the lender and the extinguishment of the related nonrecourse indebtedness.  That is, even if the reporting entity ceases to have a controlling financial interest under Subtopic 810-10, the reporting entity would continue to include the real estate, debt, and the results of the subsidiary’s operations in its consolidated financial statements until legal title to the real estate is transferred to legally satisfy the debt.  The amendments in this Update should be applied on a prospective basis to deconsolidation events occurring after the effective date.  Prior periods should not be adjusted even if the reporting entity has continuing involvement with previously derecognized in substance real estate entities.  For public entities, the amendments in this Update are effective for fiscal years, and interim periods within those years, beginning on or after June 15, 2012.  For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2013, and interim and annual periods thereafter. Early adoption is permitted.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210):  Disclosures about Offsetting Assets and Liabilities.  The amendments in this Update affect all entities that have financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement.  The requirements amend the disclosure requirements on offsetting in Section 210-20-50.  This information will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update.  An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.  An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In December 2011, the FASB issued ASU 2011-12, Comprehensive Income (Topic 220):  Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05.  In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05.  Entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05.  All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter.  This ASU is not expected to have a significant impact on the Company’s financial statements.

XML

Mortgage-Backed Securities (Details) (USD $)	Sep. 30, 2012	Jun. 30, 2012	Sep. 30, 2011
Mortgage-backed securities
Fair Value		$ 43,363,000	$ 42,808,000
Mortgage-backed securities available for sale
Mortgage-backed securities
Amortized Cost		42,302,000	41,770,000
Gross Unrealized Gains		1,069,000	1,091,000
Gross Unrealized Losses		(8,000)	(53,000)
Fair Value		43,363,000	42,808,000
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value		1,964,000	9,961,000
Less than 12 Months, Gross Unrealized Losses		(7,000)	(52,000)
12 Months or More, Fair Value		124,000	130,000
12 Months or More, Gross Unrealized Losses		(1,000)	(1,000)
Total, Fair Value		2,088,000	10,091,000
Total, Gross Unrealized Losses		(8,000)	(53,000)
Number of securities held in an unrealized loss position		2	3
Mortgage-backed securities pledged to secure repurchase agreements and public fund accounts
Carrying amount of mortgage-backed securities pledged to secure repurchase agreements and public fund accounts		19,600,000	25,100,000
Government pass-throughs, Ginnie Mae
Mortgage-backed securities
Amortized Cost		16,390,000	19,080,000
Gross Unrealized Gains		247,000	164,000
Gross Unrealized Losses			(52,000)
Fair Value		16,637,000	19,192,000
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value			9,961,000
Less than 12 Months, Gross Unrealized Losses			(52,000)
Total, Fair Value			9,961,000
Total, Gross Unrealized Losses			(52,000)
Government pass-throughs, Fannie Mae
Mortgage-backed securities
Amortized Cost		19,988,000	17,358,000
Gross Unrealized Gains		591,000	602,000
Fair Value		20,579,000	17,960,000
Government pass-throughs, Freddie Mac
Mortgage-backed securities
Amortized Cost		3,482,000	4,755,000
Gross Unrealized Gains		222,000	316,000
Fair Value		3,704,000	5,071,000
Private pass-throughs
Mortgage-backed securities
Amortized Cost		125,000	131,000
Gross Unrealized Losses		(1,000)	(1,000)
Fair Value		124,000	130,000
Securities in a continuous unrealized loss position presented by length of time
12 Months or More, Fair Value		124,000	130,000
12 Months or More, Gross Unrealized Losses		(1,000)	(1,000)
Total, Fair Value		124,000	130,000
Total, Gross Unrealized Losses		(1,000)	(1,000)
Collateralized mortgage obligations
Mortgage-backed securities
Amortized Cost		2,317,000	446,000
Gross Unrealized Gains		9,000	9,000
Gross Unrealized Losses		(7,000)
Fair Value		2,319,000	455,000
Securities in a continuous unrealized loss position presented by length of time
Less than 12 Months, Fair Value	1,964,000
Less than 12 Months, Gross Unrealized Losses	(7,000)
Total, Fair Value	1,964,000
Total, Gross Unrealized Losses	$ (7,000)

XML

Mortgage-Backed Securities (Tables) (Mortgage-backed securities)

9 Months Ended

Jun. 30, 2012

Mortgage-backed securities

Mortgage-backed securities

Schedule of securities available for sale

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2012:
Government pass-throughs:
Ginnie Mae	$	16,390	$	247	$	—		$	16,637
Fannie Mae	19,988		591		—			20,579
Freddie Mac	3,482		222		—			3,704
Private pass-throughs	125		—		(1		)	124
Collateralized mortgage obligations	2,317		9		(7		)	2,319
	$	42,302	$	1,069	$	(8	)	$	43,363

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2011:
Government pass-throughs:
Ginnie Mae	$	19,080	$	164	$	(52	)	$	19,192
Fannie Mae	17,358		602		—			17,960
Freddie Mac	4,755		316		—			5,071
Private pass-throughs	131		—		(1		)	130
Collateralized mortgage obligations	446		9		—			455
	$	41,770	$	1,091	$	(53	)	$	42,808

Schedule of fair value and gross unrealized losses on mortgage-backed securities and the length of time the securities have been in a continuous unrealized loss position

	June 30, 2012
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Private pass-throughs	$	—	$	—		$	124	$	(1	)	$	124	$	(1	)
Collateralized mortgage obligations	1,964		(7		)	—		—			1,964		(7		)
Total	$	1,964	$	(7	)	$	124	$	(1	)	$	2,088	$	(8	)

XML

Contribution to Standard Charitable Foundation

9 Months Ended

Jun. 30, 2012

Contribution to Standard Charitable Foundation

Contribution to Standard Charitable Foundation

(7)  Contribution to Standard Charitable Foundation

The Company made a $1.4 million one-time contribution to Standard Charitable Foundation during the quarter ended December 31, 2010 in connection with its stock conversion.  This contribution represented $1.2 million or 3.5% of the stock issued on October 6, 2010 and $200,000 in cash.  The after tax impact on net income of this one-time contribution was net expense of $908,000 (net of income tax benefit of $468,000).

XML

Mortgage-Backed Securities (Mortgage-backed securities)

9 Months Ended

Jun. 30, 2012

Mortgage-backed securities

Mortgage-Backed Securities

Mortgage-Backed Securities

(5)Mortgage-Backed Securities

Mortgage-backed securities available for sale at June 30, 2012 and at September 30, 2011 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2012:
Government pass-throughs:
Ginnie Mae	$	16,390	$	247	$	—		$	16,637
Fannie Mae	19,988		591		—			20,579
Freddie Mac	3,482		222		—			3,704
Private pass-throughs	125		—		(1		)	124
Collateralized mortgage obligations	2,317		9		(7		)	2,319
	$	42,302	$	1,069	$	(8	)	$	43,363

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
September 30, 2011:
Government pass-throughs:
Ginnie Mae	$	19,080	$	164	$	(52	)	$	19,192
Fannie Mae	17,358		602		—			17,960
Freddie Mac	4,755		316		—			5,071
Private pass-throughs	131		—		(1		)	130
Collateralized mortgage obligations	446		9		—			455
	$	41,770	$	1,091	$	(53	)	$	42,808

During the three and nine months ended June 30, 2012 and 2011, there were no sales of mortgage-backed securities.

The following table shows the fair value and gross unrealized losses on mortgage-backed securities and the length of time that the securities have been in a continuous unrealized loss position at June 30, 2012 and at September 30, 2011 (dollars in thousands):

	June 30, 2012
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Private pass-throughs	$	—	$	—		$	124	$	(1	)	$	124	$	(1	)
Collateralized mortgage obligations	1,964		(7		)	—		—			1,964		(7		)
Total	$	1,964	$	(7	)	$	124	$	(1	)	$	2,088	$	(8	)

	September 30, 2011
	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
Ginnie Mae	$	9,961	$	(52	)	$	—	$	—		$	9,961	$	(52	)
Private pass-throughs	—		—			130		(1		)	130		(1		)
Total	$	9,961	$	(52	)	$	130	$	(1	)	$	10,091	$	(53	)

At June 30, 2012 and September 30, 2011, the Company held 2 and 3 mortgage-backed securities, respectively, in an unrealized loss position.  The decline in the fair value of these securities resulted primarily from interest rate fluctuations.  The Company does not intend to sell these securities nor is it more likely than not that the Company would be required to sell these securities before its anticipated recovery, and the Company believes the collection of the investment and related interest is probable.  Based on the above, the Company considers all of the unrealized losses to be temporary impairment losses.

Mortgage-backed securities with a carrying value of $19.6 million and $25.1 million were pledged to secure repurchase agreements and public fund accounts at June 30, 2012 and at September 30, 2011, respectively.

XML

Loans Receivable and Related Allowance for Loan Losses

9 Months Ended

Jun. 30, 2012

Loans Receivable and Related Allowance for Loan Losses

Loans Receivable and Related Allowance for Loan Losses

(6)  Loans Receivable and Related Allowance for Loan Losses

The following table summarizes the primary segments of the loan portfolio as of June 30, 2012 and September 30, 2011 (dollars in thousands):

	Real Estate Loans
	One-to-four-family
	Residential		Commercial		Home Equity
	and		Real		Loans and Lines				Other
	Construction		Estate		of Credit		Commercial		Loans		Total
June 30, 2012:
Total loans before allowance for loan losses	$	143,606	$	91,884	$	46,832	$	12,072	$	2,273	$	296,667
Individually evaluated for impairment	$	—	$	2,385	$	—	$	477	$	—	$	2,862
Collectively evaluated for impairment	$	143,606	$	89,499	$	46,832	$	11,595	$	2,273	$	293,805
September 30, 2011:
Total loans before allowance for loan losses	$	141,869	$	88,096	$	45,594	$	11,683	$	2,392	$	289,634
Individually evaluated for impairment	$	—	$	3,101	$	—	$	39	$	—	$	3,140
Collectively evaluated for impairment	$	141,869	$	84,995	$	45,594	$	11,644	$	2,392	$	286,494

The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance.  Real estate loans are disaggregated into three categories which include one-to-four family residential (including residential construction loans), commercial real estate (which are primarily first liens) and home equity loans and lines of credit (which are generally second liens).  The commercial loan segment consists of loans made for the purpose of financing the activities of commercial customers.  Other loans consist of automobile loans, consumer loans and loans secured by savings accounts.  The portfolio segments utilized in the calculation of the allowance for loan losses are disaggregated at the same level that management uses to monitor risk in the portfolio.  Therefore the portfolio segments and classes of loans are the same.

Management evaluates individual loans in the commercial and commercial real estate loan segments for possible impairment if the loan is in nonaccrual status or is risk rated Substandard, Doubtful or Loss and is greater than 90 days past due.  Loans are considered to be impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  The Company does not separately evaluate individual consumer and residential real estate loans for impairment, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring agreement.  Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan by loan basis, with management primarily utilizing the fair value of collateral method.  The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis.  The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. There were no loans considered to be a troubled debt restructuring at June 30, 2012 and at September 30, 2011.

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary at June 30, 2012 and September 30, 2011 (dollars in thousands):

	Impaired Loans With Allowance				Impaired Loans Without Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
	Investment		Allowance		Investment		Investment		Balance
June 30, 2012:
Commercial real estate	$	2,385	$	716	$	—	$	2,385	$	2,385
Commercial	477		143		—		477		477
Total impaired loans	$	2,862	$	859	$	—	$	2,862	$	2,862
September 30, 2011:
Commercial real estate	$	3,101	$	930	$	—	$	3,101	$	3,101
Commercial	39		12		—		39		39
Total impaired loans	$	3,140	$	942	$	—	$	3,140	$	3,140

The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (dollars in thousands):

	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012		2011
Average investment in impaired loans:
Commercial real estate	$	2,312	$	1,772	$	2,491	$	1,513
Commercial	545		489		435		823
Total impaired loans	$	2,857	$	2,261	$	2,926	$	2,336
Interest income recognized on impaired loans:
Accrual basis	$	—	$	—	$	—	$	—

The loan rating categories utilized by management generally follow bank regulatory definitions. The special mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a substandard classification.  Loans in the substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected.  All loans greater than 90 days past due are considered substandard.  Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.  Assets (or portions of assets) classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted and are charged off against the loan loss allowance.  The pass category includes all loans not considered special mention, substandard, doubtful or loss.

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential real estate loans are included in the pass categories unless a specific action, such as delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s commercial loan officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. An annual loan review is performed for all commercial real estate and commercial loans for all commercial relationships greater than $500,000.  The Bank engages an external consultant to conduct loan reviews on at least an annual basis. Generally, the external consultant reviews commercial relationships greater than $500,000 and all criticized relationships.  Loans in the special mention, substandard or doubtful categories that are collectively evaluated for impairment are given separate consideration in the determination of the loan loss allowance.

The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system as of June 30, 2012 and September 30, 2011 (dollars in thousands):

			Special
	Pass		Mention		Substandard		Doubtful		Total
June 30, 2012:
First mortgage loans:
One-to-four-family residential and construction	$	142,538	$	—	$	1,068	$	—	$	143,606
Commercial real estate	85,726		2,734		3,424		—		91,884
Home equity loans and lines of credit	46,642		—		53		137		46,832
Commercial loans	11,595		—		477		—		12,072
Other loans	2,264		—		2		7		2,273
Total	$	288,765	$	2,734	$	5,024	$	144	$	296,667
September 30, 2011:
First mortgage loans:
One-to-four-family residential and construction	$	140,433	$	—	$	1,436	$	—	$	141,869
Commercial real estate	80,860		2,808		4,428		—		88,096
Home equity loans and lines of credit	45,547		—		47		—		45,594
Commercial loans	10,644		—		1,039		—		11,683
Other loans	2,389		—		—		3		2,392
Total	$	279,873	$	2,808	$	6,950	$	3	$	289,634

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due.  At June 30, 2012 and September 30, 2011, there were no loans 90 days past due and still accruing.  The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of June 30, 2012 and September 30, 2011 (dollars in thousands):

			30-59 Days		60-89 Days		Non-Accrual		Total
	Current		Past Due		Past Due		(90 Days+)		Loans
June 30, 2012:
First mortgage loans:
One-to-four-family residential and construction	$	140,371	$	1,357	$	810	$	1,068	$	143,606
Commercial real estate	89,006		397		96		2,385		91,884
Home equity loans and lines of credit	46,559		69		14		190		46,832
Commercial loans	11,515		80		—		477		12,072
Other loans	2,261		3		2		7		2,273
Total	$	289,712	$	1,906	$	922	$	4,127	$	296,667
September 30, 2011:
First mortgage loans:
One-to-four-family residential and construction	$	137,935	$	1,977	$	521	$	1,436	$	141,869
Commercial real estate	83,641		1,006		348		3,101		88,096
Home equity loans and lines of credit	45,457		68		22		47		45,594
Commercial loans	11,563		—		81		39		11,683
Other loans	2,386		3		—		3		2,392
Total	$	280,982	$	3,054	$	972	$	4,626	$	289,634

An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio.  The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans.

Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate.  For general allowances, historical loss trends are used in the estimation of losses in the current portfolio.  These historical loss amounts are modified by other qualitative factors.  Management tracks the historical net charge-off activity for the loan segments which may be adjusted for qualitative factors.  Pass rated credits are segregated from criticized credits for the application of qualitative factors.  Loans in the criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors.

Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience.  The additional factors are evaluated using information obtained from internal, regulatory, and governmental sources such as national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL.  When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.  Management utilizes an internally developed spreadsheet to track and apply the various components of the allowance.

The following tables summarize the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment.  Activity in the allowance is presented for the nine months ended June 30, 2012 and 2011 (dollars in thousands):

	Real Estate Loans
	One-to-four-						Home
	family			Commercial			Equity Loans
	Residential and			Real			and Lines						Other
	Construction			Estate			of Credit			Commercial			Loans			Total
Balance at September 30, 2011	$	682		$	3,024		$	173		$	452		$	190		$	4,521
Charge-offs	(235		)	(233		)	(32		)	(640		)	(9		)	(1,149		)
Recoveries	—			59			—			4			3			66
Provision	200			—			50			650			—			900
Balance at June 30, 2012	$	647		$	2,850		$	191		$	466		$	184		$	4,338
Balance at September 30, 2010	$	609		$	2,460		$	220		$	483		$	217		$	3,989
Charge-offs	(109		)	(476		)	(26		)	(85		)	(36		)	(732		)
Recoveries	12			31			—			26			12			81
Provision	397			679			28			56			40			1,200
Balance at June 30, 2011	$	909		$	2,694		$	222		$	480		$	233		$	4,538

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines				Other
	Construction		Estate		of Credit		Commercial		Loans		Total
Evaluated for Impairment:
Individually	$	—	$	716	$	—	$	143	$	—	$	859
Collectively	647		2,134		191		323		184		3,479
Balance at June 30, 2012	$	647	$	2,850	$	191	$	466	$	184	$	4,338
Evaluated for Impairment:
Individually	$	—	$	930	$	—	$	12	$	—	$	942
Collectively	682		2,094		173		440		190		3,579
Balance at September 30, 2011	$	682	$	3,024	$	173	$	452	$	190	$	4,521

The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the loan portfolio at any given date.

XML

Employee Stock Ownership Plan

9 Months Ended

Jun. 30, 2012

Employee Stock Ownership Plan

Employee Stock Ownership Plan

(8)  Employee Stock Ownership Plan

The Company established a tax qualified Employee Stock Ownership Plan (“ESOP”) for the benefit of its employees in conjunction with the stock conversion on October 6, 2010.  Eligible employees begin to participate in the plan after one year of service and become 20% vested in their accounts after two years of service, 40% after three years of service, 60% after four years of service, 80% after five years of service and 100% after six years of service or, if earlier, upon death, disability or attainment of normal retirement age.

In connection with the stock conversion, the purchase of the 278,254 shares of the Company stock by the ESOP was funded by a loan from the Company through the Bank.  Unreleased ESOP shares collateralize the loan payable, and the cost of the shares is recorded as a contra-equity account in the stockholders’ equity of the Company.  Shares are released as debt payments are made by the ESOP to the loan.  The ESOP’s sources of repayment of the loan can include dividends, if any, on the unallocated stock held by the ESOP and discretionary contributions from the Company to the ESOP and earnings thereon.

Compensation is recognized under the shares released method and compensation expense is equal to the fair value of the shares committed to be released and unallocated ESOP shares are excluded from outstanding shares for purposes of computing earnings per share.  Compensation expense related to the ESOP of $169,000 and $162,000 was recognized during the nine months ended June 30, 2012 and 2011, respectively.

As of June 30, 2012, the ESOP held a total of 278,254 shares of the Company’s stock, and there were 260,186 unallocated shares.  The fair market value of the unallocated ESOP shares was $4.2 million at June 30, 2012.

XML

Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Jun. 30, 2012

Fair Value of Assets and Liabilities

Schedule of assets measured at fair value on a recurring basis by level within the fair value hierarchy

	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	or Liabilities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2012:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	25,154	$	—	$	25,154
Corporate bonds	—		7,033		—		7,033
Municipal obligations	—		32,656		—		32,656
Equity securities	1,351		—		—		1,351
Total investment securities available for sale	1,351		64,843		—		66,194
Mortgage-backed securities available for sale	—		43,363		—		43,363
Total recurring fair value measurements	$	1,351	$	108,206	$	—	$	109,557
September 30, 2011:
Investment securities available for sale:
U.S. government and agency obligations	$	—	$	24,654	$	—	$	24,654
Corporate bonds	—		7,066		—		7,066
Municipal obligations	—		29,980		—		29,980
Equity securities	1,246		—		—		1,246
Total investment securities available for sale	1,246		61,700		—		62,946
Mortgage-backed securities	—		42,808		—		42,808
Total recurring fair value measurements	$	1,246	$	104,508	$	—	$	105,754

Schedule of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy

	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
	or Liabilities		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2012:
Foreclosed real estate	$	—	$	—	$	560	$	560
Impaired loans	—		—		2,003		2,003
Total nonrecurring fair value measurements	$	—	$	—	$	2,563	$	2,563
September 30, 2011:
Foreclosed real estate	$	—	$	—	$	743	$	743
Impaired loans	—		—		2,198		2,198
Total nonrecurring fair value measurements	$	—	$	—	$	2,941	$	2,941

Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for level 3 inputs to determine fair value

	Quantitative Information about Level 3 Fair Value Measurements
			Valuation	Unobservable	Range
June 30, 2012:	Estimate		Techniques	Input	(Weighted Average)
Foreclosed real estate	$	560	Appraisal of	Appraisal adjustments (2)	0% to -40% (-25%)
			collateral (1)	Liquidation expenses (2)	0% to -10% (-5%)
Impaired loans	$	2,003	Fair value of	Appraisal adjustments (2)	0% to -40% (-25%)
			collateral (1), (3)	Liquidation expenses (2)	0% to -10% (-5%)

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3)Includes qualitative adjustments by management and estimated liquidation expenses.

Schedule of carrying amount, fair value, and placement in the fair value hierarchy of the financial instruments

			Fair Value Measurements
			Quoted Prices in		Significant
			Active Markets for		Other		Significant
			Identical Assets		Observable		Unobservable
	Carrying		or Liabilities		Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)
June 30, 2012:
Financial Instruments - Assets:
Cash on hand and due from banks	$	1,891	$	1,891	$	—	$	—
Interest-earning deposits in other institutions	8,627		8,627		—		—
Investment securities	66,194		1,351		64,843		—
Mortgage-backed securities	43,363		—		43,363		—
Loans receivable	292,329		—		—		304,076
Loans held for sale	419		434		—		—
Accrued interest receivable	1,350		1,350
Federal Home Loan Bank stock	2,780		2,780		—		—
Bank-owned life insurance	10,046		10,046		—		—
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,543		186,543		—		—
Certificate deposit accounts	139,151		—		—		146,352
Federal Home Loan Bank advances	31,618		—		—		32,176
Securities sold under agreements to repurchase	2,199		2,199		—		—
Accrued interest payable	281		281		—		—
September 30, 2011:
Financial Instruments - Assets:
Cash on hand and due from banks	$	1,869	$	1,869	$	—	$	—
Interest-earning deposits in other institutions	10,789		10,789		—		—
Investment securities	62,946		1,246		61,700		—
Mortgage-backed securities	42,808		—		42,808		—
Loans receivable	285,113		—		—		297,800
Loans held for sale	100		102		—		—
Accrued interest receivable	1,337		1,337
Federal Home Loan Bank stock	2,839		2,839		—		—
Bank-owned life insurance	9,778		9,778		—		—
Financial Instruments - Liabilities:
Demand, regular and club accounts	186,235		186,235		—		—
Certificate deposit accounts	134,087		—		—		140,482
Federal Home Loan Bank advances	28,520		—		—		29,500
Securities sold under agreements to repurchase	2,897		2,897		—		—
Accrued interest payable	268		268		—		—

XML

Loans Receivable and Related Allowance for Loan Losses (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	$ 296,667	$ 289,634
Commercial loans
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	12,072	11,683
Other loans
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	2,273	2,392
First mortgage loans, One-to-four-family residential and construction
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	143,606	141,869
First mortgage loans, Commercial real estate
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	91,884	88,096
Home equity loans and lines of credit
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	46,832	45,594
Pass
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	288,765	279,873
Pass | Commercial loans
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	11,595	10,644
Pass | Other loans
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	2,264	2,389
Pass | First mortgage loans, One-to-four-family residential and construction
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	142,538	140,433
Pass | First mortgage loans, Commercial real estate
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	85,726	80,860
Pass | Home equity loans and lines of credit
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	46,642	45,547
Special Mention
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	2,734	2,808
Special Mention | First mortgage loans, Commercial real estate
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	2,734	2,808
Substandard
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	5,024	6,950
Substandard | Commercial loans
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	477	1,039
Substandard | Other loans
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	2
Substandard | First mortgage loans, One-to-four-family residential and construction
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	1,068	1,436
Substandard | First mortgage loans, Commercial real estate
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	3,424	4,428
Substandard | Home equity loans and lines of credit
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	53	47
Doubtful
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	144	3
Doubtful | Other loans
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	7	3
Doubtful | Home equity loans and lines of credit
Classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system
Loans	$ 137

XML

Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Net Income	$ 764	$ 845	$ 2,377	$ 1,691
Other comprehensive income (loss):
Comprehensive gain (loss) on securities available for sale	805	1,331	499	(344)
Tax effect	(274)	(453)	(170)	117
Reclassification adjustment for gains realized in income			(55)	(2)
Tax effect			19	1
Total other comprehensive income (loss)	531	878	293	(228)
Total Comprehensive Income	$ 1,295	$ 1,723	$ 2,670	$ 1,463

XML

Basis of Presentation

9 Months Ended

Jun. 30, 2012

Basis of Presentation

Basis of Presentation

(2)Basis of Presentation

The accompanying consolidated financial statements were prepared in accordance with instructions to Form 10-Q, and therefore, do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States. All adjustments (consisting of normal recurring adjustments), which, in the opinion of management are necessary for a fair presentation of the financial statements and to make the financial statements not misleading have been included. These financial statements should be read in conjunction with the audited financial statements and the accompanying notes thereto included in the Company’s Annual Report for the fiscal year ended September 30, 2011. The results for the three and nine month periods ended June 30, 2012 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2012 or any future interim period. Certain amounts in the 2011 financial statements have been reclassified to conform to the 2012 presentation format. These reclassifications had no effect on stockholders’ equity or net income.

XML

Loans Receivable and Related Allowance for Loan Losses (Details 4) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	$ 289,712	$ 280,982
30-59 Days Past Due	1,906	3,054
60-89 Days Past Due	922	972
Non-Accrual (90 Days+)	4,127	4,626
Total loans before allowance for loan losses	296,667	289,634
Commercial loans
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	11,515	11,563
30-59 Days Past Due	80
60-89 Days Past Due		81
Non-Accrual (90 Days+)	477	39
Total loans before allowance for loan losses	12,072	11,683
Other loans
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	2,261	2,386
30-59 Days Past Due	3	3
60-89 Days Past Due	2
Non-Accrual (90 Days+)	7	3
Total loans before allowance for loan losses	2,273	2,392
First mortgage loans, One-to-four-family residential and construction
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	140,371	137,935
30-59 Days Past Due	1,357	1,977
60-89 Days Past Due	810	521
Non-Accrual (90 Days+)	1,068	1,436
Total loans before allowance for loan losses	143,606	141,869
First mortgage loans, Commercial real estate
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	89,006	83,641
30-59 Days Past Due	397	1,006
60-89 Days Past Due	96	348
Non-Accrual (90 Days+)	2,385	3,101
Total loans before allowance for loan losses	91,884	88,096
Home equity loans and lines of credit
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans
Current	46,559	45,457
30-59 Days Past Due	69	68
60-89 Days Past Due	14	22
Non-Accrual (90 Days+)	190	47
Total loans before allowance for loan losses	$ 46,832	$ 45,594

XML

Loans Receivable and Related Allowance for Loan Losses (Tables)

9 Months Ended

Jun. 30, 2012

Loans Receivable and Related Allowance for Loan Losses

Summary of primary segments of the loan portfolio

	Real Estate Loans
	One-to-four-family
	Residential		Commercial		Home Equity
	and		Real		Loans and Lines				Other
	Construction		Estate		of Credit		Commercial		Loans		Total
June 30, 2012:
Total loans before allowance for loan losses	$	143,606	$	91,884	$	46,832	$	12,072	$	2,273	$	296,667
Individually evaluated for impairment	$	—	$	2,385	$	—	$	477	$	—	$	2,862
Collectively evaluated for impairment	$	143,606	$	89,499	$	46,832	$	11,595	$	2,273	$	293,805
September 30, 2011:
Total loans before allowance for loan losses	$	141,869	$	88,096	$	45,594	$	11,683	$	2,392	$	289,634
Individually evaluated for impairment	$	—	$	3,101	$	—	$	39	$	—	$	3,140
Collectively evaluated for impairment	$	141,869	$	84,995	$	45,594	$	11,644	$	2,392	$	286,494

Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary

	Impaired Loans With Allowance				Impaired Loans Without Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
	Investment		Allowance		Investment		Investment		Balance
June 30, 2012:
Commercial real estate	$	2,385	$	716	$	—	$	2,385	$	2,385
Commercial	477		143		—		477		477
Total impaired loans	$	2,862	$	859	$	—	$	2,862	$	2,862
September 30, 2011:
Commercial real estate	$	3,101	$	930	$	—	$	3,101	$	3,101
Commercial	39		12		—		39		39
Total impaired loans	$	3,140	$	942	$	—	$	3,140	$	3,140

Schedule of average recorded investment in impaired loans and related interest income recognized for the periods indicated

	Three months ended June 30,				Nine months ended June 30,
	2012		2011		2012		2011
Average investment in impaired loans:
Commercial real estate	$	2,312	$	1,772	$	2,491	$	1,513
Commercial	545		489		435		823
Total impaired loans	$	2,857	$	2,261	$	2,926	$	2,336
Interest income recognized on impaired loans:
Accrual basis	$	—	$	—	$	—	$	—

Schedule of classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention, substandard and doubtful within the internal risk rating system

			Special
	Pass		Mention		Substandard		Doubtful		Total
June 30, 2012:
First mortgage loans:
One-to-four-family residential and construction	$	142,538	$	—	$	1,068	$	—	$	143,606
Commercial real estate	85,726		2,734		3,424		—		91,884
Home equity loans and lines of credit	46,642		—		53		137		46,832
Commercial loans	11,595		—		477		—		12,072
Other loans	2,264		—		2		7		2,273
Total	$	288,765	$	2,734	$	5,024	$	144	$	296,667
September 30, 2011:
First mortgage loans:
One-to-four-family residential and construction	$	140,433	$	—	$	1,436	$	—	$	141,869
Commercial real estate	80,860		2,808		4,428		—		88,096
Home equity loans and lines of credit	45,547		—		47		—		45,594
Commercial loans	10,644		—		1,039		—		11,683
Other loans	2,389		—		—		3		2,392
Total	$	279,873	$	2,808	$	6,950	$	3	$	289,634

Schedule of classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans

			30-59 Days		60-89 Days		Non-Accrual		Total
	Current		Past Due		Past Due		(90 Days+)		Loans
June 30, 2012:
First mortgage loans:
One-to-four-family residential and construction	$	140,371	$	1,357	$	810	$	1,068	$	143,606
Commercial real estate	89,006		397		96		2,385		91,884
Home equity loans and lines of credit	46,559		69		14		190		46,832
Commercial loans	11,515		80		—		477		12,072
Other loans	2,261		3		2		7		2,273
Total	$	289,712	$	1,906	$	922	$	4,127	$	296,667
September 30, 2011:
First mortgage loans:
One-to-four-family residential and construction	$	137,935	$	1,977	$	521	$	1,436	$	141,869
Commercial real estate	83,641		1,006		348		3,101		88,096
Home equity loans and lines of credit	45,457		68		22		47		45,594
Commercial loans	11,563		—		81		39		11,683
Other loans	2,386		3		—		3		2,392
Total	$	280,982	$	3,054	$	972	$	4,626	$	289,634

Schedule of activity in the allowance

	Real Estate Loans
	One-to-four-						Home
	family			Commercial			Equity Loans
	Residential and			Real			and Lines						Other
	Construction			Estate			of Credit			Commercial			Loans			Total
Balance at September 30, 2011	$	682		$	3,024		$	173		$	452		$	190		$	4,521
Charge-offs	(235		)	(233		)	(32		)	(640		)	(9		)	(1,149		)
Recoveries	—			59			—			4			3			66
Provision	200			—			50			650			—			900
Balance at June 30, 2012	$	647		$	2,850		$	191		$	466		$	184		$	4,338
Balance at September 30, 2010	$	609		$	2,460		$	220		$	483		$	217		$	3,989
Charge-offs	(109		)	(476		)	(26		)	(85		)	(36		)	(732		)
Recoveries	12			31			—			26			12			81
Provision	397			679			28			56			40			1,200
Balance at June 30, 2011	$	909		$	2,694		$	222		$	480		$	233		$	4,538

	Real Estate Loans
	One-to-four-				Home
	family		Commercial		Equity Loans
	Residential and		Real		and Lines				Other
	Construction		Estate		of Credit		Commercial		Loans		Total
Evaluated for Impairment:
Individually	$	—	$	716	$	—	$	143	$	—	$	859
Collectively	647		2,134		191		323		184		3,479
Balance at June 30, 2012	$	647	$	2,850	$	191	$	466	$	184	$	4,338
Evaluated for Impairment:
Individually	$	—	$	930	$	—	$	12	$	—	$	942
Collectively	682		2,094		173		440		190		3,579
Balance at September 30, 2011	$	682	$	3,024	$	173	$	452	$	190	$	4,521