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8-K - FORM 8-K - WVS FINANCIAL CORPd578533d8k.htm

Exhibit 99

 

Release Date:    Further Information:
IMMEDIATE RELEASE    David J. Bursic
July 27, 2018    President and CEO
    

or

     Linda K. Butia
     Vice President and CAO
     Phone: 412/364-1913

WVS FINANCIAL CORP. ANNOUNCES INCREASED NET INCOME AND EARNINGS PER SHARE FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 2018

Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $593 thousand or $0.32 per diluted share, for the three months ended June 30, 2018 as compared to $418 thousand or $0.22 per diluted share for the same period in 2017. The $175 thousand increase in net income during the three months ended June 30, 2018 was primarily attributable to a $211 thousand increase in net interest income, and a $36 thousand decrease in non-interest expense which were partially offset by a $40 thousand increase in income tax expense, a $20 thousand increase in the provision for loan losses and a $12 thousand decrease in non-interest income. The increase in net interest income during the three months ended June 30, 2018 was attributable to a $599 thousand increase in interest income, which was partially offset by a $388 thousand increase in interest expense. The increase in interest income was primarily attributable to higher average yields on the Company’s investment and mortgage-backed securities as well as an increase in average loan balances, when compared to the same period in 2017. The increase in interest expense was primarily attributable to higher rates paid on Federal Home Loan Bank (“FHLB”) borrowings and time deposits and higher average balances of FHLB borrowings outstanding during the three months ended June 30, 2018, when compared to the same period in 2017. The decrease in non-interest expense was primarily attributable to decreases in charitable contributions eligible for Pennsylvania tax credits and the reserve for off balance sheet loan commitments when compared to the same period in 2017. The increase in the provision for loan losses was primarily attributable to higher originations of single-family loans during the quarter ended June 30, 2018 and an increase in the Company’s ALLL reserve factor for the single family-permanent loan segment, when compared to the same period in 2017. The decrease in non-interest income was primarily attributable to an increase in other than temporary impairment losses associated with the Company’s legacy private label mortgaged backed securities (PLMBS) portfolio, decreases in service charges on deposit accounts, automated teller machine fee income, and earnings on bank owned life insurance (BOLI) when compared to the same period in 2017. The increase in income tax expense for the quarter ended June 30, 2018 when compared to the same period of 2017 reflects higher levels of taxable income partially offset by the reduced federal income tax rate.

Net income for the twelve months ended June 30, 2018 totaled $2.1 million or $1.16 per diluted share, as compared to $1.6 million or $0.87 per diluted share for the same period in 2017. The $488 thousand increase in net income during the fiscal year ended June 30, 2018 was primarily attributable to a $754 thousand increase in net interest income, a $26 thousand decrease in non-interest expense and an $8 thousand decrease in the provision for loan losses which were partially offset by a $280 thousand increase in income tax expense and a $20 thousand decrease in non-interest income. The increase in net interest income during the twelve months ended June 30, 2018 was attributable to a $2.0 million increase in interest income, which was partially offset by a $1.3 million increase in interest expense. The increase in interest income was primarily attributable to


higher average yields on the Company’s investment and mortgage-backed securities as well as an increase in average loan balances when compared to the same period in 2017. Also contributing to the increase in interest income for the twelve months ended 2018 were higher average balances and yields attributable to dividends received on FHLB stock. The increase in interest expense was primarily attributable to higher average market rates paid on FHLB borrowings and time deposits which were partially offset by lower average balances of FHLB long-term advances outstanding, during the fiscal year ended June 30, 2018, when compared to the same period in 2017. The decrease in non-interest expense was primarily attributable to lower ATM program expenses. The decrease in the provision for loan losses was primarily attributable to lower originations of single-family loans, which was partially offset by an increase in the Company’s ALLL reserve factor for the single-family permanent loan segment, during the twelve months ended June 30, 2018 compared to the same period of 2017. The decrease in non-interest income was primarily attributable to an increase in other-than-temporary impairment losses on the Company’s legacy PLMBS portfolio, decreases in service charges on deposits and ATM program expense and lower earnings on BOLI which were offset by the absence of losses on trading securities when compared to the same period in 2017. The increase in income tax expense for the twelve months ended June 30, 2018 when compared to the same period in 2017 was primarily attributable to higher levels of taxable income and an additional $133 thousand federal income tax expense due to the write down of the Company’s net deferred tax assets associated with the Tax Cuts and Jobs Act of 2017 which was partially offset by the reduced corporate federal income tax rate effective January 1, 2018.

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. 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,
2018
(Unaudited)
    June 30,
2017
(Unaudited)
 

Total assets

   $ 352,288     $ 351,609  

Cash and Cash Equivalents

     2,441       2,272  

Certificates of Deposits

     350       10,380  

Investment securities available-for-sale

     128,811       108,449  

Investment securities held-to-maturity

     6,181       8,678  

Mortgage-backed securities held-to-maturity

     115,857       129,321  

Net loans receivable

     84,675       77,455  

Deposits

     145,023       145,289  

FHLB advances: long-term fixed-rate

     —         10,000  

FHLB advances: long-term variable-rate

     —         6,109  

FHLB advances: short-term

     171,403       155,799  

Equity

     34,017       33,043  

Book value per share – Common Equity

     17.27       16.45  

Book value per share – Tier I Equity

     17.37       16.54  

Annualized Return on average assets

     0.60     0.48

Annualized Return on average equity

     6.31     4.94

Tier I leverage ratio

     9.65     9.53


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)
 
     2018      2017      2018      2017  

Interest income

   $ 2,696      $ 2,097      $ 9,670      $ 7,646  

Interest expense

     985        597        3,124        1,854  

Net interest income

     1,711        1,500        6,546        5,792  

Provision for loan losses

     29        9        50        58  

Net interest income after provision for loan losses

     1,682        1,491        6,496        5,734  

Non-interest income

     111        123        470        490  

Non-interest expense

     957        993        3,713        3,739  

Income before income tax expense

     836        621        3,253        2,485  

Income taxes

     243        203        1,128        848  

NET INCOME

   $ 593      $ 418      $ 2,125      $ 1,637  

EARNINGS PER SHARE:

           

Basic

   $ 0.32      $ 0.22      $ 1.16      $ 0.87  

Diluted

   $ 0.32      $ 0.22      $ 1.16      $ 0.87  

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

     

Basic

     1,827,870        1,855,313        1,826,893        1,873,790  

Diluted

     1,827,870        1,855,313        1,827,260        1,873,790