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8-K - FORM 8-K - WVS FINANCIAL CORPd908786d8k.htm

Exhibit 99

 

Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
April 17, 2015 President and CEO
             or
Keith A. Simpson
Vice President and CAO
Phone: 412/364-1913

WVS FINANCIAL CORP. ANNOUNCES INCREASED NET INCOME AND EARNINGS PER SHARE FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2015

Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $460 thousand or $0.22 per diluted share, for the three months ended March 31, 2015 as compared to $198 thousand or $0.10 per diluted share for the same period in 2014. The $262 thousand increase in net income during the three months ended March 31, 2015 was primarily attributable to a $360 thousand increase in net interest income, a $20 thousand increase in non-interest income, and a $19 thousand decrease in non-interest expense, which were partially offset by a $111 thousand increase in income tax expense and a $26 thousand increase in provisions for loan losses. The increase in net interest income for the three months ended March 31, 2015, was primarily attributable to a $293 thousand increase in interest income and a $67 thousand decrease in interest expense. The increase in interest income was primarily attributable to higher yields earned on the Company’s Federal Home Loan Bank (“FHLB”) stock, and higher average balances of loans outstanding, U.S. Government agency bonds, and taxable municipal bonds, which were partially offset by lower average balances of U.S. Government agency mortgage-backed securities and investment-grade corporate bonds, and lower yields earned on the Company’s loan portfolio, when compared to the same period in 2014. The increase in the yield earned on the Company’s FHLB stock was attributable to a $145 thousand special dividend paid by FHLB Pittsburgh. The increase in the average balance of loans outstanding was attributable to increased loan originations in excess of repayments, while the increase in the average balances of U.S. Government agency bonds and taxable municipal bonds were a result of a reallocation of funds into these sectors of the Company’s investment portfolio from repayments on the Company’s U.S. Government agency mortgage-backed securities and investment-grade corporate bond sectors. The decrease in interest expense was primarily attributable to lower average balances of FHLB long-term fixed-rate advances, FHLB short-term advances, and time deposits, and lower rates paid on FHLB long-term fixed-rate advances, which were partially offset by increases in the average balance of FHLB long-term variable-rate advances and higher rates paid on FHLB short-term advances. The increase in non-interest income was primarily attributable to the absence of impairment losses on private-label mortgage-backed securities and increases in ATM fee income and other miscellaneous operating income, which were partially offset by a decrease in service charges on deposits. The decrease in non-interest expense was primarily attributable to recoveries of legal expense related to a paid off non-performing home equity line of credit, decreases in federal deposit insurance premiums and employee related costs, which were partially offset by increases in ATM and debit card related costs, provisions for off-balance sheet (loan origination) commitments, and occupancy and equipment costs. The increase in income tax expense was primarily attributable to higher levels of taxable income for the quarter ended March 31, 2015, when compared to the same period in 2014. The increase in provisions for loan losses was primarily attributable to an increase in the Company’s loan portfolio.


Net income for the nine months ended March 31, 2015 totaled $1.0 million or $0.50 per diluted share, as compared to $641 thousand or $0.31 per diluted share for the same period in 2014. The $384 thousand increase in net income during the nine months ended March 31, 2015 was primarily attributable to a $716 thousand increase in net interest income, and a $20 thousand increase in non-interest income, which were partially offset by a $152 thousand increase in income tax expense, a $134 thousand increase in provisions for loan losses and a $66 thousand increase in non-interest expense. The increase in net interest income during the nine months ended March 31, 2015 was attributable to a $523 thousand increase in interest income and a $193 thousand decrease in interest expense. The increase in interest income was primarily attributable to higher yields earned and higher average balances of the Company’s FHLB stock, U.S. Government agency mortgage-backed securities and U.S. Government agency bonds, higher average balances of loans outstanding and taxable municipal bonds, and higher yields earned on investment-grade corporate bonds, which were partially offset by lower average balances of investment-grade corporate bonds and lower yields earned on the Company’s loan portfolio. The increase in the yields earned on the Company’s FHLB stock was attributable to a $145 thousand special dividend paid by FHLB Pittsburgh. The increases in the average balances of U.S. Government agency mortgage-backed securities and bonds, and taxable municipal bonds were attributable to a reallocation of funds into these sectors of the Company’s investment portfolio from repayments on the Company’s investment-grade corporate bond sector. The increase in the average balance of loans outstanding was attributable to increased loan originations in excess of repayments. The decrease in interest expense was primarily attributable to decreases in the average balances of FHLB long-term fixed-rate advances, FHLB short-term advances, and time deposits, and lower rates paid on FHLB long-term fixed-rate advances, which were partially by higher average balances of FHLB long-term variable-rate advances and higher rates paid on FHLB short-term advances. The increase in income tax expense was primarily attributable to higher levels of taxable income during the nine months ended March 31, 2015, when compared to the same period in 2014. The increase in non-interest income for the nine months ended March 31, 2015, was primarily attributable to the absence of impairment losses on private-label mortgage-backed securities, and increases in ATM and debit card related income and earnings on bank-owned life insurance, which were partially offset by a decrease in service charges on deposits. The increase in the provision for loan losses was primarily attributable to an increase in the Company’s loan portfolio during the nine months ended March 31, 2015, and the absence of a $109 thousand credit provision on a paid off non-performing loan which was recorded in the nine months ended March 31, 2014. The increase in non-interest expense was primarily attributable to increases in ATM and debit card related expenses, compensation related costs, and provisions for off-balance sheet (loan origination) commitments, which were partially offset by recoveries of legal fees related to a paid off non-performing home equity line of credit, a decrease in federal deposit insurance premiums, and decreases in charitable contributions eligible for PA tax credits and occupancy and equipment costs, for the nine months ended March 31, 2015, when compared to the same period in 2014.

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)

 

     March 31,
2015
(Unaudited)
    June 30,
2014
(Unaudited)
 

Total assets

   $ 321,219      $ 309,940   

Cash and Cash Equivalents

     2,502        1,360   

Certificates of Deposits

     350        598   

Investment securities available-for-sale

     57,966        28,387   

Investment securities held-to-maturity

     34,684        22,047   

Mortgage-backed securities held-to-maturity

     172,586        215,335   

Net loans receivable

     38,097        29,724   

Deposits

     141,738        141,859   

FHLB advances: long-term, fixed-rate

     12,500        12,500   

FHLB advances: long-term, variable-rate

     105,305        99,196   

FHLB advances: short-term

     28,424        23,626   

Equity

     32,080        31,788   

Book value per share – Common Equity

     15.65        15.45   

Book value per share – Tier I Equity

     15.84        15.66   

Annualized Return on average assets

     0.43     0.30

Annualized Return on average equity

     4.30     2.87

Tier I leverage ratio

     10.33     10.17


WVS FINANCIAL CORP. AND SUBSIDIARY

SELECTED CONSOLIDATED OPERATING DATA

(In thousands except per share data)

 

     Three Months Ended
March 31,
(Unaudited)
     Nine Months Ended
March 31,
(Unaudited)
 
     2015      2014      2015      2014  

Interest income

   $ 1,740       $ 1,447       $ 4,796       $ 4,273   

Interest expense

     284         351         857         1,050   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

  1,456      1,096      3,939      3,223   

Provision for loan losses

  31      5      52      (82
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

  1,425      1,091      3,887      3,305   

Non-interest income

  132      112      416      396   

Non-interest expense

  894      913      2,797      2,731   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income tax expense

  663      290      1,506      970   

Income taxes

  203      92      481      329   
  

 

 

    

 

 

    

 

 

    

 

 

 

NET INCOME

$ 460    $ 198    $ 1,025    $ 641   
  

 

 

    

 

 

    

 

 

    

 

 

 

EARNINGS PER SHARE:

Basic

$ 0.22    $ 0.10    $ 0.50    $ 0.31   

Diluted

$ 0.22    $ 0.10    $ 0.50    $ 0.31   

WEIGHTED AVERAGE SHARES OUTSTANDING:

Basic

  2,050,430      2,057,930      2,050,658      2,057,930   

Diluted

  2,050,430      2,057,930      2,050,658      2,057,930