Exhibit 99
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| Release Date: | | Further Information: |
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| IMMEDIATE RELEASE | | David J. Bursic |
| January 26, 2018 | | President and CEO |
| | Phone:412/364-1913 |
WVS FINANCIAL CORP. ANNOUNCES INCREASED NET INCOME AND EARNINGS PER
SHARE FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2017
Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $396 thousand or $0.22 per diluted share, for the three months ended December 31, 2017 as compared to $395 thousand or $0.21 per diluted share for the same period in 2016. The change in net income during the three months ended December 31, 2017 was primarily attributable to a $172 thousand increase in net interest income, a $17 thousand increase innon-interest income, and a $12 thousand decrease in provisions for loan losses, which were partially offset by a $41 thousand increase innon-interest expense and a $159 thousand increase in income tax expense. The increase in income tax expense for the quarter ended December 31, 2017 reflects $133 thousand of additional federal income tax expense recorded as a result of a write down in the Company’s net deferred tax assets pursuant to the enactment of the Tax Cuts and Jobs Act of 2017 (JTCA), when compared to the same period in 2016. The Company expects a lower effective federal income tax rate beginning January 1, 2018 when the federal corporate tax rate will be reduced to 21% from 34%. The increase in net interest income during the three months ended December 31, 2017 was attributable to a $453 thousand increase in interest income primarily due to higher average yields on investment and mortgage-backed securities, and higher average balances of loans when compared to the same period in 2016. The increase in net interest income was partially offset by a $281 thousand increase in interest expense. The increase in interest expense was primarily attributable to both higher average balances and higher average market rates paid on Federal Home Loan Bank (FHLB) short-term borrowings which were partially offset by the payoff of FHLB long-term borrowings. The increase innon-interest income was primarily the result of the absence of an unrealized loss on a trading security partially offset by a decrease in miscellaneous operating income. The increase innon-interest expense was primarily attributable to higher correspondent bank service charges and an increase in debit card fraud losses during the quarter ended December 31, 2017, when compared to the same period in 2016. The decrease in the provision for loan losses was primarily attributable to a decrease in construction loan balances which were partially offset by an increase in the Company’s single-family permanent loan portfolio.
Net income for the six months ended December 31, 2017 totaled $898 thousand or $0.49 per diluted share, as compared to $793 thousand or $0.42 per diluted share for the same period in 2016. The $105 thousand increase in net income during the six months ended December 31, 2017 was primarily attributable to a $348 thousand increase in net interest income, and a $23 thousand decrease in provisions for loan losses, partially offset by a $269 thousand increase in income tax expense. The increase in net interest income during the six months ended December 31, 2017 was attributable to a $900 thousand increase in interest income, which was partially offset by a $552 thousand increase in interest expense. The increase in interest income was the result of higher average yields on investment and mortgage-backed securities, and higher average balances of loans outstanding, when compared to the same period in 2016. The increase in interest expense was primarily attributable to both higher average balances and higher average market rates paid on Federal Home Loan Bank (FHLB) short-term borrowings, which were partially offset by payoffs of FHLB long-term borrowings during the six months ended December 31, 2017, when compared to the
