Standard Bank Annual Report

2011 Message To Shareholders
 

Although not yet fully reflected in our improved 2011 financial results, Standard Bancshares, Inc. continued to make strides in our recovery from the challenges that have confronted the economy and the financial services industry these past four years.

For the year ending December 31, 2011, we reported a net loss of $5.5 million compared to the 2010 year’s net loss of $28.5 million. The 2011 loss reflected our continued funding of the provision for loan losses, which for the year was $38.2 million.

Despite posting a loss, albeit significantly lower than the prior year, there were some bright spots in our 2011 performance. Core earnings continued to trend positive and core deposits continued to grow, reflecting the trust and loyalty our customers have in us. We were successful in containing expenses and implementing new revenue generating strategies throughout our business units. We hope to see the impact of these initiatives reflected in our financial performance in 2012 and beyond. We also began to explore various means through which to raise additional capital in order to better position the Bank for what we believe will be an improving economy.

Customer relationships and commitment to our neighborhood communities have long been a constant with Standard Bank. In 2011 we continued to expand our outreach through our financial literacy programs as well as web-based social media initiatives. In addition, we saw a substantial, growing commitment from our Standard Bank colleagues who put in countless hours of volunteer time, helping multiple local charities and not-for-profit organizations achieve their goals while demonstrating the Bank’s unwavering dedication to the neighborhoods we serve.

As the Chicago area economy gradually improves, the credit issues we have encountered over the past four years appear to be easing modestly. We are cautiously optimistic that the worst may be behind us, but remain vigilant in our focus on improving asset quality.

In closing, we want to thank our employees for their continued dedication to our customers and mission, as well as thank our Directors for their guidance and wise counsel. As always, we sincerely appreciate the continued confidence, trust and loyalty that our customers, communities and you, our shareholders, have placed in us.
 

Sincerely,

Timothy J. Gallagher
Chairman of the Board

Lawrence P. Kelley
President, Chief Executive Officer and Vice Chaiman of the Board