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

[  ]     Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 0-24948

PVF Capital Corp.

(440) 248-7171

Not Applicable

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 [X]                     NO [  ]          

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

PVF CAPITAL CORP.

INDEX

PART I FINANCIAL INFORMATION

PVF CAPITAL CORP.

See accompanying notes to consolidated financial statements

Page 1

PART 1 FINANCIAL STATEMENTS
ITEM 1 FINANCIAL STATEMENTS

PVF CAPITAL CORP.

See accompanying notes to consolidated financial statements

Page 2

PART I FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS

PVF CAPITAL CORP.

See accompanying notes to consolidated financial statements

Page 3

Part I Financial Information
Item 1

PVF CAPITAL CORP.

Notes to Consolidated Financial Statements

September 30, 2004 and 2003
(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, 2004 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 accounting principles generally accepted in the United States of America 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, 2004 are not necessarily indicative of the results to be expected for the entire year ending June 30, 2005. PVF Capital Corp.’s common stock is traded on the NASDAQ SMALL-CAP ISSUES under the symbol PVFC.
		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.”

Page 4

Part I Financial Information
Item 1

2.

The following table discloses earnings per share for the three months ended September 30, 2004 and September 30, 2003.

3.

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 statements of financial condition under the caption “Prepaid expenses and other assets.”

Mortgage banking activities, net consists of the following:

Page 5

Part I Financial Information

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, 2004 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 $774.1 million as of September 30, 2004, an increase of approximately $18.4 million, or 2.4%, as compared to June 30, 2004. The Bank remained in regulatory capital compliance for tier one core capital, tier one risk-based capital, and total risk-based capital with capital levels of 8.89%, 10.48% and 11.12%, respectively, at September 30, 2004.

During the three months ended September 30, 2004, the Company’s cash and cash equivalents, which consist of cash, interest-bearing deposits and federal funds sold, increased $0.6 million, or 3.7%, as compared to June 30, 2004. The change in the Company’s cash and cash equivalents consisted of an increase in cash and interest-bearing deposits of $7.6 million and a decrease in federal funds sold of $7.0 million.

Page 6

Part I Financial Information
Item 2

FINANCIAL CONDITION continued

The net $16.8 million, or 2.6%, increase in loans receivable, loans receivable held for sale, and mortgage-backed securities during the three months ended September 30, 2004, resulted from an increase in loans receivable of $21.6 million, and decreases in loans receivable held for sale and mortgage-backed securities of $3.2 million and $1.6 million, respectively. The increase of $21.6 million in loans receivable included increases of $8.3 million in construction loans, $5.7 million in land loans, $5.5 million in consumer loans, $3.8 million in single-family loans, $2.1 million in home equity line of credit loans and $0.1 million in multi-family loans. These increases were partially offset by decreases of $2.6 million in commercial real estate loans and $1.3 million in commercial equity line of credit loans. The decrease in loans receivable held for sale is the result of a decline in mortgage refinancing activity. The decrease in mortgage-backed securities resulted from payments received of $1.6 million. The loan activity for the quarter ended September 30, 2004 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, deposits decreased by $14.1 million, or 2.7%. This decrease in deposits was offset by an increase of $30.0 million, or 22.2%, in short-term advances from the Federal Home Loan Bank “FHLB.” The decrease in notes payable of $0.5 million, or 21.0%, is the result of payments made on notes payable.

The increase in real estate owned of $0.7 million is the result of three properties being added to the Bank’s real estate owned properties. The increase of $0.4 million in office properties and equipment is attributable to capital improvements to the investment in new computer equipment and software. The increase in advances from borrowers for taxes and insurance of $2.2 million is due to timing differences between the collection and payment of escrow funds.

The increase in advances of $30.0 million from the FHLB, the sale and repayment of loans receivable held for sale and mortgage-backed securities of $4.8 million, the increase in advances from borrowers for taxes and insurance of $2.2 million, and earnings of $1.3 million were used to fund the increase of $21.6 million in loans receivable, fund the decrease of $14.1 million in deposits, repay $0.5 million in notes payable, pay a cash dividend of $0.5 million, and fund the increase of $0.4 million in office properties and equipment.

Page 7

Part I Financial Information
Item 2

RESULTS OF OPERATIONS	Three months ended September 30, 2004 compared to the three months ended September 30, 2003.

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 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. Net interest income also includes amortization of loan origination fees, net of origination costs.

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. In addition, net income is affected by the level of operating expenses and loan loss provisions.

The Company’s net income for the three months ended September 30, 2004 was $1,267,600. This represents a $1,664,500, or 56.8%, decrease when compared with the prior year comparable period. This decrease is primarily the result of a decline in refinancing activity that resulted in a decrease in income from mortgage banking activities in the current period, in addition to a gain on the sale of real estate owned in the prior period.

Net interest income for the three months ended September 30, 2004 decreased by $137,100, or 2.4%, as compared to the prior year comparable period, due to a decrease of $23,900, or 0.2%, in total interest income and an increase in total interest expense of $113,200, or 2.6%, from the prior year comparable period. The decrease in total interest income of $23,900 in the current period resulted from a decrease in the return on interest-earning assets of 22 basis points offset by an increase of $25.0 million in the average balances of interest-earning assets from the prior year comparable period. The increase in total interest expense of $113,200 in the current period resulted from a decrease of 14 basis points in the average cost of funds on interest-bearing liabilities offset by an increase in the average balances of interest-bearing liabilities of $50.8 million from the prior year comparable period. The Company’s net interest income decreased primarily because of an 8 basis point decrease in the Company’s interest-rate spread during the current period partially offset by balance sheet growth in both interest-earning assets and interest-bearing liabilities 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, 2004, a provision for loan losses of $136,000 was recorded, while a provision for loan losses of $100,000 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, 2004, the Company experienced decreases in the level of non-accruing loans and classified assets of $1.3 million and $1.0 million, respectively. Despite decreases to non-accruing loans and classified assets, management determined it was necessary to record a provision for loan losses of $136,000 in the current period due to an increase in the total loan portfolio of $21.6 million and an increase in the recognition of specific loan losses in the current period. During the three months ended September 30, 2003, the Company experienced decreases in the level of non-accruing loans and classified assets of $0.4 million and $0.7 million, respectively. Despite a decrease in the loan portfolio of $17.1 million and decreases to non-accruing loans and classified assets, management determined it was necessary to record a provision for loan losses of $100,000 in the prior period due to an increase in the recognition of specific loan losses in the prior period. At June 30, 2004, the allowance for loan losses was $4.4 million, which represented 41.2% of non-performing loans and 0.71% of net loans. At September 30, 2004, the allowance for loan losses was $4.5 million, which represented 48.2% of non-performing loans and 0.71% of net loans.

Page 9

Part I Financial Information
Item 2

RESULTS OF OPERATIONS continued

For the three months ended September 30, 2004, non-interest income decreased by $2,626,100, or 79.3%, from the prior year comparable period. The decrease was primarily the result of a decrease of $2,354,500, or 88.1%, in income from mortgage-banking activities that resulted from a decrease of $2,819,000 in profit on loan sales in the current period offset by an increase of $464,500 in loan servicing income. The reduction in profit on loan sales for the quarter is a result of a slowdown in refinancing activities during the current period. 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 decreased by $322,200, or 65.6%, in the current period, primarily due to gains recognized on the sale of real estate owned in the prior period. Service and other fees increased by $50,600, or 34.5%, from the prior year comparable period, primarily due to increases in NOW account fee income in the current period.

Page 10

Part I Financial Information
Item 2

RESULTS OF OPERATIONS continued

Non-interest expense for the three months ended September 30, 2004 decreased by $214,000, or 4.7%, from the prior year comparable period. This was primarily the result of a decrease in other non-interest expense of $216,900, or 17.6%, due primarily to decreases in advertising expense, costs for outside services, charitable contributions, postage and special mail, and stationery, printing and supplies. The decrease of $65,400, or 2.6%, in compensation and benefits is attributable to a decrease in accrued incentive bonuses. Office properties and equipment expense increased by $68,300, or 8.6%, primarily due to the opening of an additional new branch office along with increases in office rental expense.

The federal income tax provision for the three-month periods ended September 30, 2004 and September 30, 2003 was at an effective rate of 30.9% and 33.7%, respectively. The effective tax rate was lower for the period ended September 30, 2004 due to tax-exempt income earned on bank-owned life insurance.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s liquidity measures its ability to generate adequate amounts of funds to meet cash needs. Adequate liquidity guarantees that sufficient funds are available to meet deposit withdrawals, fund loan commitments, purchase securities, maintain adequate reserve requirements, pay operating expenses, provide funds for debt service, pay dividends to stockholders and meet other general commitments in a cost-effective manner.

Our primary source of funds are deposits, principal and interest payments on loans, proceeds from the sale of loans, and advances from the Federal Home Loan Bank. While maturities and scheduled amortization on loans are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and local competition.

Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on our operating, financing, lending and investment activities during any given period. Additional sources of funds include lines of credit available from the FHLB.

Management believes the Company maintains sufficient liquidity to meet its operational needs.

Page 11

Part I Financial Information

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, 2004. 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

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 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.

Page 12

Part II Other Information

Item 1. Legal Proceedings. N/A

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

	(a)		N/A
	(b)		N/A
	(c)		N/A

The following table illustrates the repurchase of the Company’s common stock during the period ended September 30, 2004:

In August 2002 the Company announced a stock repurchase program to acquire up to 5% of the Company’s common stock. This plan was renewed for an additional year in August 2003 and 2004. The plan is renewable on an annual basis and will expire in August 2005, if not renewed.

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. Exhibits

     The following exhibits are filed herewith:

	23.1		Amended Consent of Crowe, Chizek and Company LLC
	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

Page 13

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.