Exhibit 99
| | |
Release Date: | | Further Information: |
| IMMEDIATE RELEASE | | David J. Bursic |
| October 30, 2020 | | President and CEO |
| | | Phone: 412/364-1913 |
WVS FINANCIAL CORP. ANNOUNCES NET INCOME AND EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020
Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank (Bank), today reported net income of $420 thousand or $0.24 per diluted share, for the three months ended September 30, 2020 as compared to $793 thousand or $0.45 per diluted share for the same period in 2019. The $373 thousand decrease in net income during the three months ended September 30, 2020 was primarily attributable to a $463 thousand decrease in net interest income, a $12 thousand increase in the provision for loan losses and a $33 thousand increase in non-interest expense, which were partially offset by a $134 thousand decrease in income tax expense. The decrease in net interest income during the three months ended September 30, 2020, when compared to the same period of 2019, was attributable to a $1.3 million decrease in interest income, which was partially offset by an $859 thousand decrease in interest expense. The decrease in interest income was primarily attributable to lower average yields on the Company’s floating rate investment, mortgage-backed securities, and loan portfolios, which were partially offset by higher average balances in the loan portfolio. The decrease in interest expense was primarily attributable to lower rates paid on Federal Home Loan Bank (“FHLB”) borrowings and time deposits, during the three months ended September 30, 2020, when compared to the same period in 2019. The increase in the provision for loan losses was primarily due to higher levels of construction loans during the quarter ended September 30, 2020, when compared to the same period in 2019. The increase in non-interest expense for the three months ended September 30, 2020 was primarily attributable to a $50 thousand increase in federal deposit insurance premium expense, a $7 thousand increase in employee compensation expense and a $13 thousand increase in depreciation expense which were partially offset by a $37 thousand decrease in the provision for off-balance sheet items relating to lower balances of unfunded mortgage loan commitments, when compared to the same period in 2019. The $50 thousand increase in federal deposit insurance expense was the result of the absence of Small Bank Assessment Credits applied by the Federal Deposit Insurance Corporation (“FDIC”) beginning in the quarter ended September 2019. The FDIC provided small banks (those with consolidated assets of less than $10 billion) assessment credits after the Deposit Insurance Fund ratio reached, and remained at, 1.38 percent. The Bank had no remaining assessment credits as of September 30, 2020. The increase in depreciation expense was attributable to purchases of fixed assets to upgrade technology or other capital improvements. The increase in employee compensation was primarily attributable to higher employee related expenses. The decrease in income tax expense for the three months ended September 30, 2020 was primarily due to lower taxable income, when compared to the same period in 2019.
