UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 30, 2003.
[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from ___________ to ___________
Commission File Number 0-24948
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PVF Capital Corp.
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(Exact name of registrant as specified in its charter)
Ohio 34-1659805
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
30000 Aurora Road, Solon, Ohio 44139
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(Address of principal executive offices) (Zip Code)
(440) 248-7171
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(Registrant's telephone number, including area code)
Not Applicable
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(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
--- ---
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
YES NO X
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $0.01 Par Value 6,379,934
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(Class) (Outstanding at November 12, 2003)
PVF CAPITAL CORP.
INDEX
Page
Part I Financial Information
Item 1 Financial Statements
Consolidated Statements of Financial
Condition, September 30, 2003 (unaudited)
and June 30, 2003. 1
Consolidated Statements of Operations for
the three months ended September 30,
2003 and 2002 (unaudited). 2
Consolidated Statements of Cash Flows for
the three months ended September 30, 2003
and 2002 (unaudited). 3
Notes to Consolidated Financial
Statements (unaudited). 4
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of
Operations 6
Item 3 Quantitative and Qualitative Disclosures
About Market Risk 11
Item 4 Controls and Procedures 11
Part II Other Information 12
PART I FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
PVF CAPITAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
September 30, June 30,
ASSETS 2003 2003
------ unaudited
------------- ----------
Cash and cash equivalents:
Cash and amounts due from depository institutions $10,663,684 $9,755,224
Interest bearing deposits 1,599,038 3,946,019
Federal funds sold 10,050,000 83,050,000
----------- -----------
Total cash and cash equivalents 22,312,722 96,751,243
Securities held to maturity 0 33,252
Mortgage-backed securities held to maturity 41,704,862 2,964,798
Loans receivable held for sale, net 18,460,848 33,603,895
Loans receivable, net of allowance of
$3,982,839 and $3,882,839 571,825,335 579,670,681
Office properties and equipment, net 12,080,994 11,555,919
Real estate owned, net 0 448,865
Federal Home Loan Bank stock 10,501,128 10,396,399
Prepaid expenses and other assets 10,189,640 7,978,751
------------ ------------
Total Assets $687,075,529 $743,403,803
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities
Deposits $479,146,382 $526,428,927
Advances from the Federal Home Loan Bank of Cincinnati 120,112,843 120,123,220
Notes payable 5,295,695 5,815,150
Advances from borrowers for taxes and insurance 4,661,014 7,964,653
Accrued expenses and other liabilities 16,751,545 24,468,717
------------ ------------
Total Liabilities 625,967,479 684,800,667
Stockholders' Equity
Serial preferred stock, none issued -- --
Common stock, $0.01 par value, 15,000,000 shares authorized;
6,718,008 and 6,717,283 shares issued, respectively 67,180 67,173
Additional paid-in-capital 47,181,176 47,176,696
Retained earnings 16,986,887 14,486,460
Treasury Stock, at cost 343,519 shares (3,127,193) (3,127,193)
------------ ------------
Total Stockholders' Equity 61,108,050 58,603,136
------------ ------------
Total Liabilities and Stockholders' Equity $687,075,529 $743,403,803
============ ============
Page 1
PART I FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
PVF CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
----------------------------------------------
2003 2002
Interest income
Loans $ 9,463,528 $10,434,466
Mortgage-backed securities 443,442 100,332
Cash and securities 151,391 869,688
----------- -----------
Total interest income 10,058,361 11,404,486
----------- -----------
Interest expense
Deposits 2,930,179 4,430,307
Borrowings 1,380,711 1,395,004
----------- -----------
Total interest expense 4,310,890 5,825,311
----------- -----------
Net interest income 5,747,471 5,579,175
Provision for loan losses 100,000 0
----------- -----------
Net interest income after provision for loan losses 5,647,471 5,579,175
----------- -----------
Noninterest income
Service and other fees 146,646 129,424
Mortgage banking activities, net 2,673,247 596,314
Other, net 491,463 24,090
----------- -----------
Total noninterest income 3,311,356 749,828
----------- -----------
Noninterest expense
Compensation and benefits 2,506,396 2,103,560
Office properties and equipment 797,724 747,170
Other 1,233,925 950,712
----------- -----------
Total noninterest expense 4,538,045 3,801,442
----------- -----------
Income before federal income tax provision 4,420,782 2,527,561
Federal income tax provision 1,488,700 840,475
----------- -----------
Net income $ 2,932,082 $ 1,687,086
=========== ===========
Basic earnings per share $0.46 $0.26
===== =====
Diluted earnings per share $0.45 $0.26
===== =====
Dividends declared per common share $0.074 $0.067
====== ======
See accompanying notes to consolidated financial statements
Page 2
PART I FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
PVF CAPITAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
September 30,
--------------------------------------
2003 2002
OPERATING ACTIVITIES
Net Income $ 2,932,082 $ 1,687,086
Adjustments to reconcile net income to net cash from operating activities
Depreciation 378,393 316,820
Provision for loan losses 100,000 0
Accretion of unearned discount and deferred loan origination fees, net (311,349) (291,047)
Gain on sale of loans, net (3,116,285) (647,999)
Gain on sale of real estate owned, net (438,928) 0
Federal Home Loan Bank stock dividends (104,729) (131,415)
Change in accrued interest on investments, loans, and borrowings, net (82,674) 24,778
Origination of loans receivable held for sale, net (138,941,988) (74,105,651)
Sale of loans receivable held for sale, net 157,201,320 64,544,110
Net change in other assets and other liabilities, net (13,682,643) 1,500,868
------------ ------------
Net cash from operating activities 3,933,199 (7,102,450)
------------ ------------
INVESTING ACTIVITIES
Loan and mortgage-backed securities repayments and originations, net 9,702,416 (16,112,815)
Purchase of mortgage-backed securities held for investment (39,853,303) 0
Disposals of real estate owned 888,928 22,779
Securities maturities 33,252 5,023,492
Additions to office properties and equipment, net (903,468) (958,826)
------------ ------------
Net cash from investing activities (30,132,175) (12,025,370)
------------ ------------
FINANCING ACTIVITIES
Net increase in demand deposits, NOW, and passbook savings 1,956,879 5,453,684
Net decrease in time deposits (49,239,424) (591,787)
Net increase (decrease) in Federal Home Loan Bank advances (10,377) 9,985,652
Net decrease in notes payable (519,455) (517,970)
Purchase of treasury stock 0 (22,054)
Proceeds from exercise of stock options 4,488 31,211
Cash dividend paid (431,656) (396,029)
------------ ------------
Net cash from financing activities (48,239,545) 13,942,707
------------ ------------
Net decrease in cash and cash equivalents (74,438,521) (5,185,113)
Cash and cash equivalents at beginning of period 96,751,243 14,313,688
------------ ------------
Cash and cash equivalents at end of period $ 22,312,722 $ 9,128,575
============ ============
Supplemental disclosures of cash flow information:
Cash payments of interest expense $ 4,309,947 $ 5,842,819
Cash payments of income taxes $ 3,070,000 $ 230,000
Page 3
Part I Financial Information
Item 1
PVF CAPITAL CORP.
Notes to Consolidated Financial Statements
September 30, 2003 and 2002
(Unaudited)
1. The accompanying consolidated interim financial statements were prepared in
accordance with regulations of the Securities and Exchange Commission for
Form 10-Q. All information in the consolidated interim financial statements
is unaudited except for the June 30, 2003 consolidated statement of
financial condition which was derived from the Corporation's audited
financial statements. Certain information required for a complete
presentation in accordance with generally accepted accounting principles
has been condensed or omitted. However, in the opinion of management, these
interim financial statements contain all adjustments, consisting only of
normal recurring accruals, necessary to fairly present the interim
financial information. The results of operations for the three months ended
September 30, 2003 are not necessarily indicative of the results to be
expected for the entire year ending June 30, 2004. PVF Capital Corp.'s
common stock is traded on the NASDAQ SMALL-CAP ISSUES under the symbol
PVFC.
2. Stock Compensation: Employee compensation expense under stock is reported
using the intrinsic valuation method. No stock-based compensation cost is
reflected in net income, as all options granted had an exercise price equal
to or greater than the market price of the underlying common stock at the
date of grant. The following table illustrates the effect on net income and
earnings per share if expense was measured using the fair value recognition
provisions of FASB Statement No. 123, "Accounting for Stock Based
Compensation."
Three Months Ended
September 30,
2003 2002
------------------- -------------------
Net Income as reported $2,932,082 $1,687,086
Less: Pro forma compensation
expense, net of tax $ 26,130 $ 31,034
---------- ----------
Pro forma net income $2,905,952 $1,656,052
========== ==========
Basic earnings per share $ 0.46 $ 0.26
Pro forma basic earnings per share $ 0.46 $ 0.26
Diluted earnings per share $ 0.45 $ 0.26
Pro forma diluted earnings per share $ 0.45 $ 0.26
Page 4
Part I Financial Information
Item 1
3. The following table discloses earnings per share for the three months ended
September 30, 2003 and September 30, 2002.
Three months ended September 30,
2003 2002
------------------------------------- --------------------------------------
Income Shares Per-Share Income Shares Per-Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
----------- ------------- --------- ----------- ------------- ----------
BASIC EPS
Income available to
common stockholders $2,932,082 6,374,180 $ 0.46 $1,687,086 6,371,131 $ 0.26
EFFECT OF STOCK OPTIONS 151,706 0.01 67,167 0.00
DILUTED EPS
Income available to
common stockholders $2,932,082 6,525,886 $ 0.45 $1,687,086 6,438,298 $ 0.26
4. Mortgage Banking Activities: The Company services real estate loans for
investors that are not included in the accompanying condensed consolidated
financial statements. Mortgage servicing rights are established based on
the allocated fair value of servicing rights retained on loans originated
by the bank and subsequently sold in the secondary market. Mortgage
servicing rights are included in the consolidated statement of financial
condition under the caption "Prepaid expenses and other assets."
2003 2002
---- ----
Servicing rights:
Beginning of period $4,655,182 $3,255,147
Additions 2,144,654 556,247
Valuation allowance credited
to expense (670,000) 0
Amortized to expense (850,923) (392,698)
---------- ----------
End or period $5,278,913 $3,418,696
========== ==========
Valuation allowance:
Beginning of period $ 670,000 $ 0
Reductions credited to expense 670,000 0
---------- ----------
End of period $ 0 $ 0
========== ==========
Part I Financial Information
Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
---------------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
The following analysis discusses changes in financial condition and results of
operations at and for the three-month period ended September 30, 2003 for PVF
Capital Corp. ("PVF" or the "Company"), Park View Federal Savings Bank (the
"Bank"), its principal and wholly-owned subsidiary, PVF Service Corporation, a
wholly-owned real estate subsidiary, Mid Pines Land Co., a wholly-owned real
estate subsidiary, and three other wholly-owned subsidiaries which are currently
inactive.
FORWARD-LOOKING STATEMENTS
- --------------------------
When used in this Form 10-Q, the words or phrases "will likely result," "are
expected to," "will continue," "is anticipated," "estimate," "project," or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area and competition that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements.
The Company does not undertake, and specifically disclaims any obligation, to
publicly release the results of any revisions, which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.
FINANCIAL CONDITION
- -------------------
Consolidated assets of PVF were $687.1 million as of September 30, 2003, a
decrease of approximately $56.3 million, or 7.6%, as compared to June 30, 2003.
The Bank remained in regulatory capital compliance for tangible, core, and
risk-based capital on a fully phased-in basis with capital levels of 8.68%,
8.68% and 12.24% respectively at September 30, 2003.
During the three months ended September 30, 2003, the Company's cash and cash
equivalents, which consist of cash, interest-bearing deposits and federal funds
sold, decreased $74.4 million, or 76.9%, as compared to June 30, 2003. The
change in the Company's cash and cash equivalents consisted of an increase in
cash of $0.9 million and decreases in interest bearing deposits and federal
funds sold of $75.3 million.
Page 6
Part I Financial Information
Item 2
FINANCIAL CONDITION continued
- -----------------------------
The net $15.8 million, or 2.6%, increase in loans receivable and mortgage-backed
securities during the three months ended September 30, 2003, resulted from a
decrease in loans receivable (including loans held for sale) of $22.9 million
and an increase in mortgage-backed securities of $38.7 million. The decrease of
$22.9 million in loans receivable included decreases of $15.2 million in
single-family loans, $12.7 million in land loans, $2.8 million in construction
loans and $0.6 million in multi-family loans, partially offset by increases of
$6.5 million in commercial real estate loans, $1.5 million in home equity line
of credit loans and $0.4 million in consumer loans. The increase in
mortgage-backed securities resulted from the purchase of $39.9 million in
mortgage-backed securities less payments received of $1.2 million. The decrease
of the loan portfolio was primarily the result of a decrease of $15.2 million in
single-family loans receivable held for sale along with stagnant economic
conditions. The loan activity for the quarter ended September 30, 2003 resulted
in no material change to the overall composition of the portfolio.
As a result of management's decision not to match market certificate of deposit
rates, management allowed deposits to decrease by $47.3 million, or 9.0%, in
order to reduce balances held in federal funds sold. The decrease in notes
payable of $0.5 million, or 8.9%, is the result of payments made on notes
payable.
The increase in prepaid and other assets of $2.2 million is primarily the result
of an increase of $1.3 million in the mortgage servicing asset. The increase of
$0.5 million in office properties and equipment is the result of capital
improvements to our corporate center office and the purchase of computer
equipment. The decrease of $0.5 million in real estate owned is attributable to
the sale of real estate owned.
The decrease in accrued expenses and other liabilities of $7.7 million, or
31.5%, is primarily the result of timing differences between the collection and
remittance of payments received on loans serviced for investors. The decrease in
advances from borrowers for taxes and insurance of $3.3 million, or 41.5%, is
due to timing differences between the collection and payment of escrow funds.
The decrease in cash and cash equivalents of $74.4 million, proceeds from the
sale and repayment of loans receivable of $22.9 million, earnings of $2.9
million, and proceeds of $0.5 million from the sale of real estate owned were
used to repay maturing deposits of $47.3 million, fund the net increase of $38.7
million in mortgage-backed securities, fund the decreases in accrued expenses
and other liabilities of $7.7 million and advances from borrowers for taxes and
insurance of $3.3 million, fund the increases of $2.2 million in prepaid
expenses and other assets and $0.5 million in office properties and equipment,
repay $0.5 million in notes payable, and pay a cash dividend of $0.5 million.
Page 7
Part I Financial Information
Item 2
RESULTS OF OPERATIONS Three months ended
- --------------------- September 30, 2003 compared to the
three months ended September 30,
2002.
PVF's net income is dependent primarily on its net interest income, which is the
difference between interest earned on its loans and investments and interest
paid on interest-bearing liabilities. Net interest income also includes
amortization of loan origination fees, net of origination costs. Net interest
income is determined by (i) the difference between yields earned on
interest-earning assets and rates paid on interest-bearing liabilities
("interest-rate spread") and (ii) the relative amounts of interest-earning
assets and interest-bearing liabilities. The Company's interest-rate spread is
affected by regulatory, economic and competitive factors that influence interest
rates, loan demand and deposit flows.
PVF's net income is also affected by the generation of non-interest income,
which primarily consists of loan servicing income, service fees on deposit
accounts, and gains on the sale of loans held for sale and mortgage-backed
securities available for sale. In addition, net income is affected by the level
of operating expenses, loan loss provisions and market valuation write-down of
mortgage loan servicing rights.
The Company's net income for the three months ended September 30, 2003 was
$2,932,100. This represents a $1,245,000, or 73.8%, increase when compared with
the prior year comparable period.
Net interest income for the three months ended September 30, 2003 increased by
$168,300, or 3.0%, as compared to the prior year comparable period, due to a
decrease of $1,346,100, or 11.8%, in total interest income and a decrease in
total interest expense of $1,514,400, or 26.0%, from the prior year comparable
period. The decrease in total interest income of $1,346,100 in the current
period resulted from a decrease in the return on interest-earning assets of 102
basis points partially offset by an increase of $23.1 million in the average
balance of interest-earning assets from the prior year comparable period. The
decrease in total interest expense of $1,514,400 in the current period resulted
from a decrease of 103 basis points in the average cost of funds on
interest-bearing liabilities partially offset by an increase in the average
balances of interest bearing liabilities of $14.8 million from the prior year
comparable period. The Company's net interest income increased primarily because
of balance sheet growth in both interest-earning assets and interest- bearing
liabilities along with a slight increase in the Company's interest-rate spread
during the current period as compared to the prior year comparable period.
Page 8
Part I Financial Information
Item 2
RESULTS OF OPERATIONS CONTINUED
- -------------------------------
For the three months ended September 30, 2003, a provision for loan losses of
$100,000 was recorded, while no provision for loan losses was recorded in the
prior year comparable period. The Company uses a systematic approach to
determine the adequacy of its loan loss allowance and the necessary provision
for loan losses. The loan portfolio is reviewed and delinquent loan accounts are
analyzed individually on a monthly basis, with respect to payment history,
ability to repay, probability of repayment, and loan-to-value percentage.
Consideration is given to the types of loans in the portfolio and the overall
risk inherent in the portfolio. After reviewing current economic conditions,
changes to the size and composition of the loan portfolio, changes in
delinquency status, levels of non-accruing loans, non-performing assets,
impaired loans, and actual loan losses incurred by the Company, management
establishes an appropriate reserve percentage applicable to each category of
loans, and a provision for loan losses is recorded when necessary to bring the
allowance to a level consistent with this analysis. Management believes it uses
the best information available to make a determination as to the adequacy of the
allowance for loan losses.
During the three months ended September 30, 2003, the Company experienced
decreases in the level of impaired loans and classified assets of $0.4 million
and $0.7 million, respectively. Despite a decrease in the loan portfolio of
$23.0 million and decreases to impaired loans and classified assets, management
determined it was necessary to record a provision for loan losses of $100,000 in
the current period due to an increase in the recognition of specific loan losses
in the current period. At September 30, 2003, the allowance for loan losses was
$4.0 million, which represented 56.4% of non-performing loans and 0.67% of net
loans. During the three months ended September 30, 2002, the Company experienced
an increase in the loan portfolio of $28.0 million and an increase in the level
of classified assets of $2.5 million. In addition, the level of impaired loans
decreased by $0.2 million. Management determined it was not necessary to record
a provision for loan losses in the prior period due to the application of
revised reserve percentages to certain loan categories and a decrease in
impaired loans. At September 30, 2002, the allowance for loan losses was $3.9
million, which represented 51.4% of non-performing loans and 0.65% of net loans.
Page 9
Part I Financial Information
Item 2
RESULTS OF OPERATIONS CONTINUED
- -------------------------------
AT SEPTEMBER 30, JUNE 30,
2003 2003
---- ----
(DOLLARS IN THOUSANDS)
Non-accruing loans (1):
Real estate.................................... $ 7,063 $ 7,437
--------- ---------
Accruing loans which are contractually past due
90 days or more:
Real estate.................................... $ 82 $ 275
--------- ---------
Total nonaccrual and 90 days
past due loans.............................. $ 7,145 $ 7,712
========= =========
Ratio of non-performing loans to total loans
and mortgage-backed securities..................... 1.13% 1.26%
======== ========
Other non-performing assets (2)...................... $ 0 $ 449
======== ========
Total non-performing assets.......................... $ 7,145 $ 8,161
======== ========
Total non-performing assets to
total assets....................................... 1.04% 1.10%
======== ========
- ----------
(1) Non-accrual status denotes loans on which, in the opinion of management,
the collection of additional interest is unlikely, or loans that meet the
non-accrual criteria established by regulatory authorities. Non-accrual
loans include all loans classified as doubtful or loss, loans in
foreclosure, and all loans greater than 90-days past due with a
loan-to-value ratio greater than 65%. Payments received on a non-accrual
loan are either applied to the outstanding principal balance or recorded as
interest income, depending on an assessment of the collectibility of the
principal balance of the loan.
(2) Other non-performing assets represent property acquired by the Bank through
foreclosure or repossession.
For the three months ended September 30, 2003, noninterest income increased by
$2,561,500, or 341.6%, from the prior year comparable period. The increase was
primarily the result of an increase of $2,076,900, or 348.3%, in income from
mortgage-banking activities resulting from an increase of $2,468,300 in profit
on loan sales in the current period offset by a decrease of $391,400 in loan
servicing income. The decrease in loan servicing income is attributable to the
amortization of mortgage loan servicing rights that resulted from historically
low market interest rates and increased prepayment speed on loans serviced for
others. During these periods, PVF pursued a strategy of originating long-term,
fixed-rate loans pursuant to Federal Home Loan Mortgage Corporation ("FHLMC")
and Federal National Mortgage Association ("FNMA") guidelines and selling such
loans to the FHLMC or the FNMA, while retaining the servicing.
In addition, other income, net increased by $467,400 in the current period,
primarily due to a gain of $439,000 recorded on the sale of real estate owned.
Service and other fees increased by $17,200, or 13.3%, from the prior year
comparable period, primarily due to increases in loan service fee income in the
current period.
Page 10
Part I Financial Information
Item 2
RESULTS OF OPERATIONS CONTINUED
- -------------------------------
Noninterest expense for the three months ended September 30, 2003 increased by
$736,600, or 19.4%, from the prior year comparable period. This was primarily
the result of a $402,800, or 19.2%, increase in compensation and benefits
attributable to increased staffing, employee 401(k) benefits, incentive bonuses
paid, and salary and wage adjustments. In addition, office properties and
equipment increased by $50,500, or 6.8%, primarily due to the opening of two new
branch offices along with increases in office rental expense. Other noninterest
expense increased by $283,200, or 29.8%, due primarily to increases in
advertising expense, costs for outside services, telephone, charitable
contributions, postage and special mail, and state franchise tax.
The federal income tax provision for the three-month periods ended September 30,
2003 and September 30, 2002 was at an effective rate of 33.7% and 33.2%,
respectively.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Company's liquidity measures its ability to fund loans and meet withdrawals
of deposits and other cash outflows in a cost-effective manner. Management
believes the Company maintains sufficient liquidity to meet its operational
needs.
Part I Financial Information
Item 3
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- ----------------------------------------------------------
There have been no significant changes to the Company's interest rate risk
position or any changes to how the Company manages its Asset/Liability position
since June 30, 2003. This is attributable to the Company's Asset/Liability
Management policy of monitoring and matching the maturity and re-pricing
characteristics of its interest-earning assets and interest-bearing liabilities,
while remaining short-term with the weighted average maturity and re-pricing
periods.
Part I Financial Information
Item 4
CONTROLS AND PROCEDURES
- -----------------------
As of the end of the period covered by this report, management of the Company
carried out an evaluation, under the supervision and with the participation of
the Company's principal executive officer and principal financial officer, of
the effectiveness of the Company's disclosure controls and procedures. Based on
this evaluation, the Company's principal executive officer and principal
financial officer concluded that the Company's
Page 11
Part I Financial Information
Item 4
CONTROLS AND PROCEDURES (CONTINUED)
- -----------------------------------
disclosure controls and procedures are effective in ensuring that information
required to be disclosed by the Company in reports that it files or submits
under the Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange Commission's rules and forms. It should be noted that the design of the
Company's disclosure controls and procedures is based in part upon certain
reasonable assumptions about the likelihood of future events, and there can be
no reasonable assurance that any design of disclosure controls and procedures
will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote, but the Company's principal executive and
financial officers have concluded that the Company's disclosure controls and
procedures are, in fact, effective at a reasonable assurance level.
There have been no changes in the Company's internal control over financial
reporting (to the extent that elements of internal control over financial
reporting are subsumed within disclosure controls and procedures) identified in
connection with the evaluation described in the above paragraph that occurred
during the Company's last fiscal quarter, that has materially affected, or is
reasonably likely to materially affect, the Company's internal control over
financial reporting.
Part II OTHER INFORMATION
- -------------------------
Item 1. Legal Proceedings. N/A
Item 2. Changes in Securities and Use of Proceeds. N/A
Item 3. Defaults Upon Senior Securities. N/A
Item 4. Submission of Matters to a Vote of Security Holders. N/A
Item 5. Other Information. N/A
Item 6. (a) Exhibits
--------
The following exhibits are filed herewith:
31.1 Rule 13a-14(a) Certification of Chief Executive Officer
31.2 Rule 13a-14(a) Certification of Chief Financial Officer
32 Section 1350 Certification
(b) Reports on Form 8-K
-------------------
The Registrant filed the following Current Reports on Form
8-K during the quarter ended September 30, 2003:
Date of Report Item(s) Reported Financial Statements Filed
-------------- ---------------- --------------------------
July 17, 2003 7, 12 N/A
July 24, 2003 5, 7 N/A
Page 12
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant had duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PVF Capital Corp.
(Registrant)
Date: November 13, 2003 /s/ C. Keith Swaney
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C. Keith Swaney
President, Chief Operating Officer and Treasurer
(Only authorized officer and
Principal Financial Officer)