SOLON, Ohio, Sept. 25, 2009 (GLOBE NEWSWIRE) -- PVF Capital Corp. (Nasdaq:PVFC), the parent company of Park View Federal Savings Bank, announced a loss of $7,912,000, or $1.02 basic and diluted earnings per share for the quarter ended June 30, 2009 as compared to a loss of $2,745,000, or $0.35 basic and diluted earnings per share for the prior year comparable period. For the twelve-month period ended June 30, 2009, the Company reported a loss of $20,116,000, or $2.59 basic and diluted earnings per share, as compared to a loss of $1,101,000, or $0.14 basic and diluted earnings per share, for the prior year period.
The decline in earnings for the current three- and twelve-month periods was primarily attributable to the provision for loan losses recorded in order to reflect current economic conditions. During the past two quarterly periods, the Company performed a thorough comprehensive review of its loan portfolio. This review involved analyzing all large borrowing relationships, delinquency trends, and loan collateral valuation in order to identify impaired loans, as well as deteriorating loans and loan relationships. As a result of this review detailed action plans were developed to either return the loan to performing or dispose of the loan and end the borrowing relationship. This review resulted in the Bank establishing a provision for loan losses of $11.2 million during the quarter, bringing the total allowance for loan losses to $31.5 million for the year ended June 30, 2009.
The decrease in net interest income resulted from increases to nonperforming loans as well as interest charged off during the periods. Non-interest income for the current three- and twelve-month periods was impacted positively by increases in mortgage-banking activity resulting from high refinance activity and gains posted on the sale of loans. This increase of $3.3 million and $6.4 million for the three- and twelve-month periods ended June 30, 2009 resulted from increased lending activity attributable to historically low interest rates. In addition, gains were recorded on the sale of securities in the current twelve-month period.
These gains were negatively impacted in the current twelve-month period by the impairment of the FHLMC and FNMA preferred stock totaling $1.8 million. In addition, the Company experienced losses and expenses resulting from the acquisition, maintenance, and disposal of real estate of $3.2 million and $5.7 million for the three- and twelve-month periods ended June 30, 2009.
The increase in non-interest expense for the three- and twelve-month periods was primarily the result of increases in the cost of FDIC insurance due to higher assessment rates in the three- and twelve-month periods of $468,000 and $1,033,700, respectively, as well as a special one-time assessment charged on deposits in the current three-month period of $430,500. Lastly, outside services increased by $676,400 and $1,073,800, respectively, in the current three- and twelve-month periods primarily as the result of fees paid to consultants.
As of June 30, 2009, PVF Capital Corp. reported assets of $901.6 million, an increase of $34.2 million, or 3.9%, from the prior fiscal year ended June 30, 2008. Total stockholders' equity of PVF Capital Corp. was $49.5 million at June 30, 2009.
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This press release contains statements that are forward-looking, as that term is defined by the Private Securities Litigation Act of 1995 or the Securities and Exchange Commission in its rules, regulations and releases. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectation regarding important risk factors including, but not limited to, real estate values and the impact of interest rates on financing. Accordingly, actual results may differ from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by the Company or any other person that results expressed therein will be achieved.
PVF Capital Corp.'s common stock trades on the NASDAQ Capital Market under the symbol PVFC.
PVF CAPITAL CORP.
SUMMARY OF FINANCIAL HIGHLIGHTS
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands)
June 30, June 30,
2009 2008
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ASSETS:
Cash and cash equivalents $ 21,213 $ 17,804
Investment securities 50,103 9,470
Loans receivable 668,677 714,492
Loans receivable held for sale 26,861 7,831
Mortgage-backed securities 64,178 55,151
Other assets 81,177 62,654
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Total Assets $912,209 $867,402
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LIABILITIES:
Deposits $724,932 $659,386
Borrowed money 106,366 114,950
Other liabilities 31,406 23,991
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Total Liabilities 862,704 798,327
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Total Stockholders' Equity 49,505 69,075
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Total Liabilities and Stockholders' Equity $912,209 $867,402
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CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(Dollars in thousands except per share data)
Twelve
Three Months Ended Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Loans $10,305 $12,076 $42,618 $51,655
Mortgage-backed securities 817 669 3,002 1,686
Investments 149 408 1,042 3,144
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Interest income 11,271 13,153 46,662 56,485
Deposits 4,889 $5,991 22,452 27,829
Borrowings 1,181 1,266 4,895 6,446
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Interest expense 6,070 7,257 27,347 34,275
Net interest income 5,201 5,896 19,315 22,210
Provision for loan losses 11,250 4,564 31,273 6,058
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Net interest income after
provision for loan losses (6,049) 1,332 (11,958) 16,152
Mortgage-banking activities 3,337 76 7,872 1,461
Impairment of securities 0 (195) (1,842) (195)
Gain on sale of securities 0 0 1,224 0
Loss on real estate owned (2,638) (601) (3,835) (763)
Other, net 175 331 1,380 1,955
-------- -------- -------- --------
Total noninterest income 874 (389) 4,799 2,458
Compensation and benefits 2,280 2,413 10,240 10,530
Office occupancy and
equipment 742 753 2,839 3,121
Insurance 1,131 530 1,697 588
Real estate owned expense 566 331 1,832 996
Outside services 1,049 373 2,482 1,408
Other 853 901 3,911 4,163
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Total noninterest expense 6,621 5,301 23,001 20,806
Income before federal
income tax provision (11,796) (4,358) (30,160) (2,196)
Federal income tax
provision (3,884) (1,613) (10,044) (1,095)
-------- -------- -------- --------
Net income ($7,912) ($2,745) ($20,116) ($1,101)
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Basic earnings per share ($1.02) ($0.35) ($2.59) ($0.14)
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Diluted earnings per share ($1.02) ($0.35) ($2.59) ($0.14)
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