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8-K - 8-K - WVS FINANCIAL CORPd81349d8k.htm

Exhibit 99

 

Release Date:       Further Information:
IMMEDIATE RELEASE       David J. Bursic
July 31, 2015       President and CEO
                   or
      Keith A. Simpson
      Vice President and CAO
      Phone: 412/364-1913

WVS FINANCIAL CORP. ANNOUNCES INCREASED FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 2015 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 $322 thousand or $0.16 per diluted share, for the three months ended June 30, 2015 as compared to $279 thousand or $0.14 per diluted share for the same period in 2014. The $43 thousand increase in net income during the three months ended June 30, 2015 was primarily attributable to a $42 thousand increase in net interest income, a $36 thousand decrease in non-interest expense, and a $7 thousand increase in non-interest income, which were partially offset by a $33 thousand increase in income tax expense, and a $33 thousand increase in the provision for loan losses. The increase in net interest income during the three months ended June 30, 2015 was attributable to a $33 thousand increase in interest income and a $9 thousand decrease in interest expense. The increase in interest income was primarily attributable to higher average balances of loans outstanding and investment securities, and a higher yield earned on Federal Home Loan Bank (“FHLB”) stock, which were partially offset by lower average balances of U.S. Government agency mortgage-backed securities, and lower yields earned on the Company’s investment, mortgage-backed securities, and loan portfolios, when compared to the same period in 2014. The higher average balances of loans outstanding was attributable to increased loan originations in excess of repayments, while the increase in the average balance of investment securities was the result of a reallocation of funds into the Company’s investment portfolio from repayments on the Company’s U.S. Government agency mortgage-backed securities sector. The decrease in interest expense was primarily attributable to lower average balances of time deposits, FHLB long-term fixed-rate advances and FHLB short-term


advances, which were partially offset by higher average balances of FHLB long-term variable-rate advances, and higher rates paid on FHLB long-term variable-rate advances and FHLB short-term advances, when compared to the same period in 2014. The decrease in non-interest expense was primarily attributable to decreases in legal expenses related to non-performing loans, provisions for off-balance sheet (loan origination) commitments, which were partially offset by increases in employee related costs and data processing expenses during the three months ended June 30, 2015, when compared to the same period in 2014. The increase in non-interest income for the three months ended June 30, 2015 was primarily due to increases in ATM and debit card related costs, when compared to the same period in 2014. The increase in the provision for loan losses was primarily attributable to an increase in Company’s loan portfolio. The increase in income tax expense was primarily due to higher levels of taxable income.

Net income for the fiscal year ended June 30, 2015 totaled $1.3 million or $0.66 per diluted share, as compared to $920 thousand or $0.45 per diluted share for the same period in 2014. The $427 thousand increase in net income during the fiscal year ended June 30, 2015 was primarily attributable to a $759 thousand increase in net interest income, and a $27 thousand increase in non-interest income, which were partially offset by a $427 thousand increase in income tax expense, a $143 thousand increase in the provision for loan losses and a $31 thousand increase in non-interest expense. The increase in net interest income during the fiscal year ended June 30, 2015 was attributable to a $557 thousand increase in interest income and a $202 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 and U.S. Government agency mortgage-backed securities, 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 investment-grade corporate bonds and lower yields earned on the Company’s loan portfolio, investment-grade corporate bonds, and U.S. Government agency bonds. The increase in the yields earned on the Company’s


FHLB stock was primarily 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 offset by higher average balances of FHLB long-term variable-rate advances and higher rates paid on FHLB short-term advances, and time deposits. The increase in income tax expense was primarily attributable to higher levels of taxable income during the fiscal year ended June 30, 2015, when compared to the same period in 2014. The increase in non-interest income for the fiscal year ended June 30, 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 fiscal year ended June 30, 2015, and the absence of a $109 thousand credit provision on a paid off non-performing loan which was recorded in the fiscal year ended June 30, 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 fiscal year ended June 30, 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)

 

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

Total assets

   $ 329,716      $ 309,940   

Cash and Cash Equivalents

     3,573        1,360   

Certificates of Deposits

     350        598   

Investment securities available-for-sale

     66,916        28,387   

Investment securities held-to-maturity

     36,618        22,047   

Mortgage-backed securities held-to-maturity

     162,639        215,335   

Net loans receivable

     46,163        29,724   

Deposits

     138,928        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

     37,830        23,626   

Equity

     32,043        31,788   

Book value per share – Common Equity

     15.70        15.45   

Book value per share – Tier I Equity

     15.93        15.66   

Annualized Return on average assets

     0.43     0.30

Annualized Return on average equity

     4.23     2.87

Tier I leverage ratio

     10.03     10.17


WVS FINANCIAL CORP. AND SUBSIDIARY

SELECTED CONSOLIDATED OPERATING DATA

(In thousands except per share data)

 

    

Three Months Ended

June 30,

(Unaudited)

    

Twelve Months Ended
June 30,

(Unaudited)

 
     2015      2014      2015      2014  

Interest income

   $ 1,581       $ 1,548       $ 6,378       $ 5,821   

Interest expense

     298         307         1,155         1,357   

Net interest income

     1,283         1,241         5,223         4,464   

Provision for loan losses

     18         9         70         (73

Net interest income after provision for loan losses

     1,265         1,232         5,153         4,537   

Non-interest income

     143         136         558         531   

Non-interest expense

     909         945         3,706         3,675   

Income before income tax expense

     499         423         2,005         1,393   

Income taxes

     177         144         658         473   

NET INCOME

   $ 322       $ 279       $ 1,347       $ 920   

EARNINGS PER SHARE:

           

Basic

   $ 0.16       $ 0.14       $ 0.66       $ 0.45   

Diluted

   $ 0.16       $ 0.14       $ 0.66       $ 0.45   

WEIGHTED AVERAGE SHARES OUTSTANDING:

           

Basic

     2,049,790         2,057,888         2,050,442         2,057,920   

Diluted

     2,049,790         2,057,888         2,050,442         2,057,920