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8-K - FORM 8-K - WVS FINANCIAL CORP | d573159d8k.htm |
Exhibit 99
Release Date: | Further Information: | |||
IMMEDIATE RELEASE | David J. Bursic | |||
July 29, 2013 | President and CEO | |||
or | ||||
Keith A. Simpson | ||||
Vice President and CAO | ||||
Phone: 412/364-1913 |
WVS FINANCIAL CORP. ANNOUNCES FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 2013 NET INCOME AND EARNINGS PER SHARE
Pittsburgh, PA WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $1.1 million or $0.52 per diluted share, for the fiscal year ended June 30, 2013 as compared to $1.4 million or $0.68 per diluted share for the same period in 2012. The $322 thousand decrease in net income during the fiscal year was primarily attributable to a $957 thousand decrease in net interest income, and a $36 thousand decrease in the recovery of loan losses, which were partially offset by a $360 thousand decrease in income tax expense, a $224 thousand increase in non-interest income, and an $87 thousand decrease in non-interest expense. The decrease in net interest income was attributable to a $1.1 million decrease in interest income, which was partially offset by a $137 thousand decrease in interest expense. The decrease in interest income was primarily attributable to lower yields earned on the Companys investment and loan portfolios and lower average balances of loans outstanding, which were partially offset by higher average balances of investment and mortgage-backed securities, when compared to the same period in 2012. The decrease in loan volumes was primarily attributable to lower volumes of construction loans outstanding, payoffs on non-accrual loans and repayments of loans in excess of originations. The decrease in interest expense was primarily due to lower rates paid on deposit accounts, and lower average balances of time deposits and FHLB long-term borrowings, which were partially offset by higher average balances of, and rates paid on, FHLB short-term borrowings during the fiscal year ended June 30, 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 higher levels of charitable contributions which were eligible for PA tax credits. The increase in non-interest income was primarily attributable to a $119 thousand decrease in other-than-temporary impairment (OTTI) charges on the Companys private-label mortgage-backed securities portfolio recorded during the fiscal year ended June 30, 2013, a $117 thousand recognized gain on the sale of one other real estate owned property, and a $46 thousand recognized gain on the sale of investment securities, which were partially offset by decreases in deposit fee income. The decrease in non-interest expense was primarily attributable to a decrease in federal deposit insurance expense and a decrease in correspondent bank service charges, which were partially offset by increases in ATM expense, employee related expenses, and an increase in the allowance for off-balance sheet commitments.
Net income for the three months ended June 30, 2013 totaled $231 thousand or $0.11 per diluted share, as compared to $406 thousand or $0.20 per diluted share for the same period in 2012. The $175 thousand decrease in net income during the three months ended June 30,
2013 was primarily attributable to a $331 thousand decrease in net interest income, and a $59 thousand decrease in recoveries of loan losses, which were partially offset by a $137 thousand decrease in income tax expense, a $64 thousand decrease in non-interest expense, and a $14 thousand increase in non-interest income. The decrease in net interest income during the three months ended June 30, 2013 was attributable to a $375 thousand decrease in interest income which was partially offset by a $44 thousand decrease in interest expense. The decrease in interest income was primarily attributable to lower yields earned on the Companys investment and loan portfolios and lower average balances of loans outstanding and investment securities, which were partially offset by higher average balances of mortgage-backed securities, when compared to the same period in 2012. The decrease in loan volumes was primarily due to lower volumes of construction loans outstanding and repayments on performing loans in excess of originations. The decrease in interest expense was primarily attributable to lower rates paid on deposit accounts and lower average balances of time deposits and short-term FHLB borrowings during the three months ended June 30, 2013 when compared to the same period in 2012. The decrease in income tax expense was primarily attributable to lower levels of taxable income. The decrease in non-interest expense was primarily attributable to decreases in federal deposit insurance and employee related expenses. The increase in non-interest income was primarily attributable to a $38 thousand recognized gain on the sale of investment securities which was partially offset by decreases in mortgage correspondent fees and ATM fee income.
Market interest rates continued to remain low by historical standards throughout the fiscal year ended June 30, 2013. In response to this environment, the Company continued to increase the available for sale investment allocation and 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. We also increased our Tier 1 leverage capital ratio from 11.14% at June 30, 2012 to 11.88% at June 30, 2013. 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
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except per share data)
June 30, 2013 (Unaudited) |
June 30, 2012 (Unaudited) |
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Total assets |
$ | 287,576 | $ | 273,341 | ||||
Cash and Cash Equivalents |
1,927 | 2,506 | ||||||
Certificates of Deposits |
598 | 846 | ||||||
Investment securities available-for-sale |
77,186 | 57,620 | ||||||
Investment securities held-to-maturity |
26,420 | 82,400 | ||||||
Mortgage-backed securities held-to-maturity |
139,268 | 79,086 | ||||||
Net loans receivable |
31,531 | 39,433 | ||||||
Deposits |
140,524 | 142,173 | ||||||
FHLB advances: long-term |
17,500 | 17,500 | ||||||
FHLB advances: short-term |
96,712 | 79,270 | ||||||
Equity |
31,828 | 30,413 | ||||||
Book value per share Common Equity |
15.47 | 14.78 | ||||||
Book value per share Tier I Equity |
15.83 | 15.45 | ||||||
Annualized Return on average assets |
0.39 | % | 0.55 | % | ||||
Annualized Return on average equity |
3.45 | % | 4.75 | % | ||||
Tier I leverage ratio |
11.88 | % | 11.14 | % |
WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest income |
$ | 1,419 | $ | 1,794 | $ | 5,959 | $ | 7,053 | ||||||||
Interest expense |
339 | 383 | 1,407 | 1,544 | ||||||||||||
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Net interest income |
1,080 | 1,411 | 4,552 | 5,509 | ||||||||||||
Provision for (recovery of) loan losses |
5 | (54 | ) | (68 | ) | (104 | ) | |||||||||
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Net interest income after provision for (recovery of) loan losses |
1,075 | 1,465 | 4,620 | 5,613 | ||||||||||||
Non-interest income |
144 | 130 | 573 | 349 | ||||||||||||
Non-interest expense |
857 | 921 | 3,571 | 3,658 | ||||||||||||
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Income before income tax expense |
362 | 674 | 1,622 | 2,304 | ||||||||||||
Income taxes |
131 | 268 | 542 | 902 | ||||||||||||
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NET INCOME |
$ | 231 | $ | 406 | $ | 1,080 | $ | 1,402 | ||||||||
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EARNINGS PER SHARE: |
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Basic |
$ | 0.11 | $ | 0.20 | $ | 0.52 | $ | 0.68 | ||||||||
Diluted |
$ | 0.11 | $ | 0.20 | $ | 0.52 | $ | 0.68 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
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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 |