Exhibit 99
Release Date: | Further Information: | |
| IMMEDIATE RELEASE | David J. Bursic | |
| July 29, 2016 | 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, 2016 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 $392 thousand or $0.20 per diluted share, for the three months ended June 30, 2016 as compared to $322 thousand or $0.16 per diluted share for the same period in 2015. The $70 thousand increase in net income during the three months ended June 30, 2016 was primarily attributable to a $109 thousand increase in net interest income and a $30 thousand decrease in the provision for loan losses, which were partially offset by a $37 thousand increase in non-interest expense and a $33 thousand increase in income tax expense. The increase in net interest income during the three months ended June 30, 2016 was attributable to a $209 thousand increase in interest income which was partially offset by a $100 thousand increase in interest expense. The increase in interest income was primarily attributable to higher average balances of loans and investment securities and higher yields on mortgage backed securities, which were partially offset by lower average balances of mortgage backed securities and lower yields on loans and investment securities during the three months ending June 30, 2016, when compared to the same period in 2015. The increase in interest expense during the three months ending June 30, 2016 was primarily attributable to higher market interest rates paid on FHLB advances and other short-term borrowings, and higher average balances of FHLB advances during the three months ended June 30, 2016, when compared to the same period in 2015. The increase in non-interest expense was primarily attributable to higher employee related costs, legal expenses, and federal deposit insurance premiums, which were partially offset by decreases in provisions for off-balance sheet (loan origination) commitments and data processing costs during the quarter ended June 30, 2016, when compared to the same period in 2015. The increase in income tax expense for the three months ended June 30, 2016 was primarily attributable to higher levels of taxable income, when compared to the same period in 2015. The decrease in the provision of loan losses was primarily attributable to decreases in the multi-family and commercial segments of the Company’s loan portfolio and lower levels of non-performing loans, which were partially offset by an increase in the Company’s single-family loan portfolio segments.
Net income for the twelve months ended June 30, 2016 totaled $1.325 million or $0.69 per diluted share, as compared to $1.347 million or $0.69 per diluted share for the same period in 2015. The $22 thousand decrease in net income during the twelve months ended June 30, 2016 was primarily attributable to a $141 thousand increase in income tax expense, and a $67 thousand increase in non-interest expense, which were partially offset by a $158 thousand increase in net interest income, and a $14 thousand decrease in provisions for loan losses, and a $14 thousand increase in non-interest income, when compared to the same period in 2015. The increase in income tax expense for the twelve months ended June 30, 2016 was primarily attributable to higher levels of taxable income, and the absence of PA tax credits for charitable contributions made, when compared to the same period in 2015. The increase in non-interest expense was primarily attributable to higher
employee related costs, federal deposit insurance premiums, and legal expenses, which were partially offset by decreases in data processing costs, and charitable contributions eligible for PA tax credits during the twelve months ended June 30, 2016, when compared to the same period in 2015. The decrease in provisions for loan losses was primarily attributable to lower levels of commercial and multi-family loans outstanding, partially offset by an increase in single-family loans in the Company’s loan portfolio. The increase in net interest income during the twelve months ended June 30, 2016 was attributable to a $434 thousand increase in interest income, which was partially offset by a $276 thousand increase in interest expense. The increase in interest income was primarily attributable to higher average balances of loans and investment securities outstanding, which were partially offset by lower average balances of mortgage-backed securities, and lower average yields earned on the Company’s investment, loan, FHLB stock, and mortgage-backed securities portfolios, when compared to the same period in 2015. The increase in interest expense was primarily attributable to higher rates paid on FHLB advances, and higher average balances of FHLB short-term advances during the twelve months ended June 30, 2016, which were partially offset by lower yields paid on time deposits, when compared to the same period in 2015. The increase in non-interest income was primarily attributable to gains on the sale of investment securities, which were partially offset by decreases in earnings on the Company’s Bank-owned life insurance and service charges on deposits.
President and Chief Executive Officer David J. Bursic offered the following comments on the Company’s fiscal year to date performance: “The Company’s Board of Directors and I are pleased with the sustained growth in the Company’s net loan portfolio from $46.2 million at June 30, 2015, to $64.7 million at June 30, 2016. Substantially all of this loan growth was in single family owner occupied loans. The Company continues to manually underwrite and service each loan to ensure credit quality and customer satisfaction.”
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, 2016 (Unaudited) | June 30, 2015 (Unaudited) | |||||||
Total assets | $ | 335,723 | $ | 329,716 | ||||
Cash and Cash Equivalents | 2,343 | 3,573 | ||||||
Certificates of Deposits | 350 | 350 | ||||||
Investment securities available-for-sale | 107,676 | 66,916 | ||||||
Investment securities held-to-maturity | 9,523 | 36,618 | ||||||
Mortgage-backed securities held-to-maturity | 137,416 | 162,639 | ||||||
Net loans receivable | 64,673 | 46,163 | ||||||
Deposits | 141,278 | 138,928 | ||||||
FHLB advances: fixed-rate | 10,000 | 12,500 | ||||||
FHLB advances: variable-rate | 6,109 | 105,305 | ||||||
FHLB advances: short-term | 144,027 | 37,830 | ||||||
Other short-term borrowings | — | — | ||||||
Equity | 33,085 | 32,043 | ||||||
Book value per share – Common Equity | 16.22 | 15.70 | ||||||
Book value per share – Tier I Equity | 16.34 | 15.93 | ||||||
Annualized Return on average assets | 0.40 | % | 0.43 | % | ||||
Annualized Return on average equity | 4.09 | % | 4.23 | % | ||||
Tier I leverage ratio | 9.95 | % | 10.03 | % | ||||
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) | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest income | $ | 1,790 | $ | 1,581 | $ | 6,812 | $ | 6,378 | ||||||||
Interest expense | 398 | 298 | 1,431 | 1,155 | ||||||||||||
Net interest income | 1,392 | 1,283 | 5,381 | 5,223 | ||||||||||||
Provision for loan losses | (12 | ) | 18 | 56 | 70 | |||||||||||
Net interest income after provision for loan losses | 1,404 | 1,265 | 5,325 | 5,153 | ||||||||||||
Non-interest income | 145 | 143 | 572 | 558 | ||||||||||||
Non-interest expense | 947 | 909 | 3,773 | 3,706 | ||||||||||||
Income before income tax expense | 602 | 499 | 2,124 | 2,005 | ||||||||||||
Income taxes | 210 | 177 | 799 | 658 | ||||||||||||
NET INCOME | $ | 392 | $ | 322 | $ | 1,325 | $ | 1,347 | ||||||||
EARNINGS PER SHARE: | ||||||||||||||||
Basic | $ | 0.20 | $ | 0.16 | $ | 0.69 | $ | 0.69 | ||||||||
Diluted | $ | 0.20 | $ | 0.16 | $ | 0.69 | $ | 0.69 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||||||||||||
Basic | 1,910,538 | 1,919,627 | 1,909,890 | 1,941,872 | ||||||||||||
Diluted | 1,910,538 | 1,919,627 | 1,909,890 | 1,941,872 | ||||||||||||
