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8-K - FORM 8-K - WVS FINANCIAL CORPd663824d8k.htm

Exhibit 99

 

Release Date:      Further Information:
IMMEDIATE RELEASE      David J. Bursic
January 27, 2014      President and CEO
    

or

     Keith A. Simpson
     Vice President and CAO
     Phone: 412/364-1913

WVS FINANCIAL CORP. ANNOUNCES NET INCOME AND EARNINGS PER SHARE FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2013

Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $233 thousand or $0.11 per diluted share, for the three months ended December 31, 2013 as compared to $325 thousand or $0.16 per diluted share for the same period in 2012. The $92 thousand decrease in net income during the three months ended December 31, 2013 was primarily attributable to a $120 thousand decrease in net interest income, a $79 thousand decrease in non-interest income, and a $45 thousand increase in non-interest expense, which were partially offset by a $74 thousand increase in credit provisions for loan losses, and a $78 thousand decrease in income tax expense. The decrease in net interest income during the three months ended December 31, 2013 was attributable to a $130 thousand decrease in interest income which was partially offset by a $10 thousand decrease in interest expense. The decrease in interest income was primarily attributable to lower average balances of investment securities and loans outstanding, and lower yields earned on the Company’s loan and investment portfolios, which were partially offset by higher average balances of mortgage-backed securities, when compared to the same period in 2012. The lower average balance of investment securities was due to maturities and early redemptions within the investment portfolio. The decrease in loan volumes was primarily due to lower volumes of construction loans and mortgage loans. The higher average balance of mortgage-backed securities was attributable to a reallocation of funds into U.S. Government agency floating-rate mortgage-backed securities. The decrease in interest expense was primarily attributable to lower rates paid on deposit accounts, which was partially offset by higher average balances of time deposits during the three months ended December 31, 2013, when compared to the same period in 2012. The increase in credit provisions for loan losses was primarily attributable to higher payoffs of non-performing loan balances during the three months ended December 31, 2013, when compared to the same period in 2012. The decrease in non-interest income was primarily attributable to the absence of a $117 thousand recognized gain on the sale of one single-family real estate owned property, which was partially offset by a $40 thousand increase in earnings on bank-owned life insurance, and an $8 thousand increase in mortgage loan correspondent fee income, when compared to the same period in 2012. The increase in non-interest expense was primarily attributable to higher employee related costs during the quarter ended December 31, 2013, when compared to the same period in 2012. The decrease in income tax expense was primarily attributable to lower levels of taxable income, and Pennsylvania educational improvement tax credits for the quarter ended December 31, 2013, when compared to the same period in 2012.


Net income for the six months ended December 31, 2013 totaled $443 thousand or $0.22 per diluted share, as compared to $711 thousand or $0.35 per diluted share for the same period in 2012. The $268 thousand decrease in net income during the six months ended December 31, 2013 was primarily attributable to a $306 thousand decrease in net interest income, and a $73 thousand decrease in non-interest income, which were partially offset by a $38 thousand increase in credit provisions for loan losses, a $45 thousand decrease in income tax expense and a $28 thousand decrease in non-interest expense. The decrease in net interest income during the six months ended December 31, 2013 was attributable to a $344 thousand decrease in interest income which was partially offset by a $38 thousand decrease in interest expense. The decrease in interest income was primarily attributable to lower average balances of investment securities and loans outstanding, and lower yields earned on the Company’s loan and investment portfolios, which were partially offset by higher average balances of mortgage-backed securities, when compared to the same period in 2012. The lower average balance of investment securities was due to maturities and early redemptions within the investment portfolio. The decrease in loan volumes was primarily due to lower volumes of construction loans and mortgage loans. The higher average balance of mortgage-backed securities was attributable to a reallocation of funds into U.S. Government agency floating-rate mortgage-backed securities. The decrease in interest expense was primarily attributable to lower rates paid on deposit accounts, which were partially offset by higher average balances of time deposits during the six months ended December 31, 2013, when compared to the same period in 2012. The decrease in non-interest income for the six months ended December 31, 2013, was primarily due to the absence of a $117 thousand recognized gain on the sale of one single-family real estate owned property, which was partially offset by a $67 thousand increase in earnings on bank-owned life insurance, when compared to the same period in 2012. The increase in credit provisions for loan losses was primarily attributable to higher payoffs of non-performing loan balances during the six months ended December 31, 2013, when compared to the same period in 2012. The decrease in income tax expense was primarily attributable to lower levels of taxable income and PA educational improvement tax credits during the six months ended December 31, 2013, when compared to the same period in 2012. The decrease in non-interest expense was primarily attributable to decreases in charitable contributions eligible for PA tax credits, provision for losses on off-balance sheet (loan origination) commitments, and other real estate owned expenses, which were partially offset by increases in employee related expenses, federal deposit insurance premiums, and occupancy and equipment depreciation expense during the six months ended December 31, 2013, when compared to the same period in 2012.

Market interest rates continued to remain low by historical standards throughout the six months ended December 31, 2013. In response to this environment, the Company continued to grow the U.S. Government agency floating rate mortgage-backed securities segment of the balance sheet. These actions allowed us to significantly bolster balance sheet liquidity. As market conditions improve, we anticipate continuing to grow our asset base.

WVS Financial Corp. owns 100% of the outstanding common stock of West View Savings Bank. The Savings Bank is a Pennsylvania-chartered, FDIC savings bank, which conducts business from six offices located in the North Hills suburbs of Pittsburgh, Pennsylvania. In January 2009, West View Savings Bank began its second century of service to our communities. The Bank wishes to thank our customers and host communities for allowing us to be their full service bank.

—TABLES ATTACHED—

# # #


WVS FINANCIAL CORP. AND SUBSIDIARY

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands except per share data)

 

     December 31,
2013
(Unaudited)
    June 30,
2013
(Unaudited)
 

Total assets

   $ 314,033      $ 287,576   

Cash and Cash Equivalents

     1,821        1,927   

Certificates of Deposits

     598        598   

Investment securities available-for-sale

     55,581        77,186   

Investment securities held-to-maturity

     18,163        26,420   

Mortgage-backed securities held-to-maturity

     193,956        139,268   

Net loans receivable

     31,470        31,531   

Deposits

     141,286        140,524   

FHLB advances: long-term

     17,500        17,500   

FHLB advances: short-term

     122,054        96,712   

Equity

     32,290        31,828   

Book value per share – Common Equity

     15.69        15.47   

Book value per share – Tier I Equity

     15.97        15.83   

Annualized Return on average assets

     0.30     0.39

Annualized Return on average equity

     2.77     3.45

Tier I leverage ratio

     10.86     11.88


WVS FINANCIAL CORP. AND SUBSIDIARY

SELECTED CONSOLIDATED OPERATING DATA

(In thousands except per share data)

 

     Three Months Ended
December 31,
(Unaudited)
    Six Months Ended
December 31,
(Unaudited)
 
     2013     2012     2013     2012  

Interest income

   $ 1,424      $ 1,554      $ 2,827      $ 3,171   

Interest expense

     355        365        699        737   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     1,069        1,189        2,128        2,434   

Provision for loan losses

     (99     (26     (87     (50
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

     1,168        1,215        2,215        2,484   

Non-interest income

     146        224        283        355   

Non-interest expense

     958        913        1,818        1,846   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax expense

     356        526        680        993   

Income taxes

     123        201        237        282   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 233      $ 325      $ 443      $ 711   
  

 

 

   

 

 

   

 

 

   

 

 

 

EARNINGS PER SHARE:

        

Basic

   $ 0.11      $ 0.16      $ 0.22      $ 0.35   

Diluted

   $ 0.11      $ 0.16      $ 0.22      $ 0.35   

WEIGHTED AVERAGE SHARES OUTSTANDING:

        

Basic

     2,057,930        2,057,930        2,057,930        2,057,930   

Diluted

     2,057,930        2,057,930        2,057,930        2,057,930