PVF Capital (PVFC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

PRESS ANNOUNCEMENT

Date:	April 27, 2011
Contact:	James H. Nicholson Chief Financial Officer 440-248-7171

PVF Capital Corp. Announces Fiscal Third Quarter Results.

• Continued progress in problem asset resolution. Nonperforming assets decline $6.2 million, or 9.32%, to $60.7 million.

• Over past 12 months, nonperforming assets have declined $20.2 million or 25.0%.

• Maturity of $50 million repurchase agreement funded with overnight funds; reduces total assets, improves tier one capital ratio, improves net interest margin.

• Mortgage banking activities weaker during the period resulting in mortgage banking income of $0.8 million, including $127,000 recovery of mortgage servicing asset valuation allowance.

• Credit costs lower during period but remain elevated with provision for loan losses of $2.1 million and loss on real estate owned of $339,000.

• Continued progress towards achieving regulatory targeted adversely classified assets ratio.

• Bank capital ratios remain strong.

Solon, OH – PVF Capital Corp. (Nasdaq: PVFC), the parent company of Park View Federal Savings Bank, announced a net loss of $2,793,536, or $0.11 basic and diluted loss per share for the quarter ended March 31, 2011. This compares with net income of $1,269,065 for the prior year period which included a nonrecurring pretax gain of $9,065,908 on the cancellation of debt. Absent the gain, a net loss of $4,714,434 would have been recorded in the prior period.

As previously announced, the $50 million repurchase borrowing agreement matured in late March 2011. This borrowing which carried an interest rate of 4.99% was settled using a portion of the Bank’s short-term cash and cash equivalents position. This had the result of further deleveraging the Bank’s balance sheet, improving the tier I core capital ratio and will reduce annual borrowing costs related to this debt by approximately $2.5 million. The underlying investment securities were retained in the portfolio and had a net unrealized market gain of approximately $722,000 at March 31, 2011.

Mortgage banking revenue experienced a sharp decline as higher mortgage rates resulted in a slow down of residential mortgage refinancing activities. The lower mortgage volume resulted in mortgage loan sale income of $378,000 which was a decrease of $2.1 million from the linked quarter of December 31, 2010, and a decrease of $234,000 from the prior year quarter. Net servicing income during the quarter was $299,000. The slow down of refinancing activities and corresponding prepayment speeds resulted in a partial recovery in the estimated fair value of certain tranches of the Company’s mortgage servicing rights, which had a valuation allowance of $465,000. The Company recognized a recovery of $127,000 during the period, leaving a valuation allowance of

$338,000. The estimated value of the Company’s mortgage servicing rights portfolio, as a whole, continues to exceed its carrying value.

Robert J. King, Jr., President and Chief Executive Officer commented, “This was another significant quarter for the Company as we continued to successfully resolve a number of problem assets, deleveraged the balance sheet as a result of the matured repurchase agreement, and continued to strengthen its liquidity position, all key components in positioning the Company for future profitability.”

During the quarter, the Company made significant progress in reducing its level of nonperforming assets. Nonperforming loans declined $5.6 million, or 9.6%, in addition to a decrease of $0.6 million in other real estate owned, resulting in a net decrease in nonperforming assets of $6.2 million. The Company continued to reduce its level of classified assets to core capital plus general valuation allowance ratio to 69.7% at March 31, 2011, compared with 97.4% at March 31, 2010. The Company also reduced its level of classified assets plus special mention assets to core capital ratio plus general valuation allowance to 91.9%, compared with 102.9% a year ago.

During the current period, total assets declined $53.5 million, or 6.4%, while the loan portfolio shrunk $1.4 million, or 0.2%, as the Company reduces its problem loans. Net of problem loan disposition, the Company experienced growth in the loan portfolio of $4.2 million, an important first step in the strategy to return to profitability. The decline in total assets was primarily the result of the maturity of a $50 million repurchase agreement borrowing as previously discussed.

Net interest income for the period declined $98,000 and $123,000, as compared with the periods ending December 31, 2010 and March 31, 2010, respectively, due to the smaller balance sheet. The Company continues to maintain a relatively high level of liquidity as part of its turnaround strategy and positioning for balance diversification. Although the balance sheet is smaller, the net interest margin was 2.58% for the period and was higher than the 2.56% reported for the linked period and higher than the 2.55% for the year ago period.

The provision for loan losses totaled $2.1 million, reflecting the continued difficult economic operating environment, along with costs associated with problem asset disposition during the quarter. The provision for loan losses totaled $4.5 million in the previous period and $7.0 million in the prior year period.

The allowance for loan losses at March 31, 2011 was $29.9 million, or 5.0%, of total loans outstanding. This compares to $31.5 million and 5.3%, respectively, at December 31, 2010 and $30.3 million and 4.8%, respectively, at March 31, 2010. The allowance’s coverage of nonperforming loans continued to improve during the quarter to 56.8% at March 31, 2011, compared with 54.1% and 43.3% at December 31, 2010 and March 31, 2010, respectively.

Park View Federal is a wholly-owned subsidiary of PVF Capital Corp. and operates 17 full-service offices located throughout the Greater Cleveland area. For additional information, visit our web site at www.myparkview.com.

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 shares trade on the NASDAQ Capital Market under the symbol PVFC.

PVF CAPITAL CORP.

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

	March 31, 2011			June 30, 2010
	(unaudited)
ASSETS
Cash and amounts due from depository institutions	$	24,721,575		$	18,283,620
Interest-bearing deposits		54,803,920			111,759,326
Federal funds sold		10,000,000			—
Total cash and cash equivalents		89,525,495			130,042,946
Securities available for sale		15,872,390			20,149,149
Mortgage-backed securities available for sale		38,965,491			47,145,878
Loans receivable held for sale, net		5,848,380			8,717,592
Loans receivable, net of allowance of $29,686,242 and $31,519,466, respectively		561,923,818			587,405,644
Office properties and equipment, net		7,664,780			7,876,320
Real estate owned, net		8,082,863			8,173,741
Federal Home Loan Bank stock		12,811,100			12,811,100
Bank-owned life insurance		23,353,428			23,144,033
Prepaid expenses and other assets		13,125,640			14,118,127
Total assets	$	777,173,385		$	859,584,530
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Deposits	$	647,250,571		$	667,546,477
Note payable		1,179,445			1,259,444
Long-term advances from the Federal Home Loan Bank		35,000,000			35,000,000
Repurchase agreement		—			50,000,000
Advances from borrowers for taxes and insurance		7,405,240			4,930,327
Accrued expenses and other liabilities		11,857,625			17,605,257
Total liabilities	$	702,692,881		$	776,341,505
Stockholders’ equity
Serial preferred stock, none issued		—			—
Common stock, $.01 par value, 65,000,000 shares authorized; 26,142,443 and 26,114,943 shares issued, respectively		261,424			261,149
Additional paid-in capital		100,483,297			100,260,665
Retained earnings (accumulated deficit)		(22,219,533	)		(15,097,658	)
Accumulated other comprehensive income (loss)		(207,537	)		1,656,016
Treasury stock at cost, 472,725 shares, respectively		(3,837,147	)		(3,837,147	)
Total stockholders’ equity		74,480,504			83,243,025
Total liabilities and stockholders’ equity	$	777,173,385		$	859,584,530

PVF CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31,						Nine Months Ended March 31,
	2011			2010			2011			2010
Interest and dividends income
Loans	$	7,328,247		$	8,571,176		$	23,116,620		$	26,867,466
Mortgage-backed securities		419,470			606,234			1,347,261			1,962,861
Federal Home Loan Bank stock dividends		145,309			145,310			418,203			450,319
Securities		43,033			52,396			183,955			93,707
Fed funds sold and interest-bearing deposits		72,288			4,349			153,404			14,748
Total interest and dividends income		8,008,347			9,379,465			25,219,443			29,389,101
Interest expense
Deposits		2,171,129			3,226,333			7,184,421			11,348,323
Short-term borrowings		—			—			—			50
Long-term borrowings		828,394			891,767			2,643,346			2,715,699
Subordinated debt		—			129,760			—			574,499
Total interest expense		2,999,523			4,247,860			9,827,767			14,638,571
Net interest income		5,008,824			5,131,605			15,391,676			14,750,530
Provision for loan losses		2,090,000			7,000,000			9,390,000			11,010,000
Net interest income after provision for loan losses		2,918,824			(1,868,395	)		6,001,676			3,740,530
Non-interest income
Service charges and other fees		131,252			160,652			491,947			507,735
Mortgage banking activities, net		803,656			769,798			5,778,162			3,276,002
Increase in cash surrender value of bank-owned life insurance		65,773			75,312			209,395			173,554
Gain on sale of equity securities		—			23,871			—			23,871
Gain (loss) on real estate owned		(59,560	)		6,028			(282,690	)		(153,505	)
Provision for real estate owned losses		(279,160	)		(244,647	)		(1,004,470	)		(746,420	)
Gain on the cancellation of subordinated debt		—			9,065,908			—			17,627,438
Other, net		174,453			98,188			742,181			439,150
Total non-interest income		836,414			9,955,110			5,934,525			21,147,825
Non-interest expense
Compensation and benefits		2,867,152			2,316,795			7,753,597			6,930,606
Office occupancy and equipment		656,002			645,445			2,016,648			1,970,600
Outside services		678,471			535,085			1,940,005			1,880,354
Federal deposit insurance premium		480,057			584,440			1,707,741			1,887,985
Real estate owned expense		846,864			948,914			2,206,173			2,396,599
Other		1,089,129			1,093,522			2,895,182			3,321,001
Total non-interest expense		6,617,675			6,124,201			18,519,346			18,387,145
Income (loss) before federal income taxes		(2,862,437	)		1,962,514			(6,583,145	)		6,501,210
Federal income tax provision		(68,901	)		693,449			688,732			2,313,249
Net income (loss)	$	(2,793,536	)	$	1,269,065		$	(7,271,877	)	$	4,187,961
Basic earnings (loss) per share	$	(0.11	)	$	0.14		$	(0.28	)	$	0.50
Diluted earnings (loss) per share	$	(0.11	)	$	0.13		$	(0.28	)	$	0.50

FINANCIAL HIGHLIGHTS

	At or for the three months ended
(dollars in thousands except per share data)	March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010
Balance Sheet Data:
Total assets	$	777,363		$	826,701		$	836,746		$	859,585		$	889,184
Loans receivable		591,800			593,169			604,038			618,925			636,243
Allowance for loan losses		29,876			31,493			32,629			31,519			30,272
Loans receivable held for sale, net		5,848			11,278			15,151			8,718			9,017
Mortgage-backed securities available for sale		38,966			43,022			41,772			47,146			52,217
Cash and cash equivalents		89,481			130,961			130,706			130,043			137,369
Securities held to maturity		—			—			—			—			5,000
Securities available for sale		15,872			16,958			15,112			20,149			9,978
Deposits		647,251			628,995			644,635			667,546			689,562
Borrowings		36,179			86,206			86,233			86,259			86,286
Stockholders’ equity		74,671			77,654			82,233			83,243			85,304
Nonperforming loans		52,564			58,216			71,100			69,090			69,983
Other nonperforming assets		8,083			8,764			6,891			8,174			10,991
Tangible common equity ratio		9.61	%		9.39	%		9.83	%		9.68	%		9.59	%
Book value per share	$	2.91		$	3.03		$	3.21		$	3.25		$	3.36
Common shares outstanding at period end		25,669,718			25,669,718			25,642,218			25,642,218			25,402,218
Operating Data:
Interest income	$	8,008			8,358		$	8,853		$	9,177		$	9,380
Interest expense		2,999			3,251			3,577			3,907			4,248
Net interest income before provision for loan losses		5,009			5,107			5,276			5,270			5,132
Provision for loan losses		2,090			4,500			2,800			3,918			7,000
Net interest income (loss) after provision for loan losses		2,919			607			2,476			1,352			(1,868	)
Noninterest income		836			2,610			2,488			388			9,955	(1)
Noninterest expense		6,618			5,974			5,928			6,069			6,124
Income (loss) before federal income taxes		(2,863	)		(2,757	)		(964	)		(4,329	)		1,963
Federal income tax expense (benefit)		(69	)		953			(346	)		(1,582	)		694
Net income (loss)	$	(2,794	)	$	(3,710	)	$	(618	)	$	(2,747	)	$	1,269
Basic earnings (loss) per share	$	(0.11	)	$	(0.14	)	$	(0.02	)	$	(0.11	)	$	0.14
Diluted earnings (loss) per share	$	(0.11	)	$	(0.14	)	$	(0.02	)	$	(0.11	)	$	0.13
(1)    Includes $9.1 million gain related to exchange of PVF Capital Trust II trust preferred securities.
Performance Ratios:
Return on average assets		(1.35	%)		(1.78	%)		(0.29	%)		(1.24	%)		0.58	%
Return on average equity		(14.67	%)		(18.29	%)		(2.97	%)		(12.96	%)		7.27	%
Net interest margin		2.58	%		2.56	%		2.62	%		2.55	%		2.55	%
Interest rate spread		2.48	%		2.41	%		2.48	%		2.44	%		2.48	%
Efficiency ratio		110.01	%		79.29	%		63.33	%		87.17	%		97.83	%
Stockholders’ equity to total assets (all tangible)		9.61	%		9.39	%		9.83	%		9.68	%		9.59	%
Asset Quality Ratios:
Nonperforming assets to total assets		7.80	%		8.10	%		9.32	%		8.99	%		9.11	%
Nonperforming loans to total loans		8.88	%		9.81	%		11.77	%		11.16	%		11.00	%
Allowance for loan losses to total loans		5.05	%		5.31	%		5.40	%		5.09	%		4.76	%
Allowance for loan losses to nonperforming loans		56.84	%		54.10	%		45.89	%		45.62	%		43.26	%
Net charge-offs to average loans, annualized		2.47	%		3.64	%		1.08	%		1.68	%		4.05	%
Park View Federal Regulatory Capital Ratios:
Ratio of tangible capital to adjusted total assets		9.09	%		8.84	%		8.71	%		8.63	%		8.23	%
Ratio of tier one (core) capital to adjusted total assets		9.09	%		8.84	%		8.71	%		8.63	%		8.23	%
Ratio of tier one risk-based capital to risk-weighted assets		11.83	%		12.16	%		11.65	%		11.56	%		10.93	%
Ratio of total risk-based capital to risk-weighted assets		13.10	%		13.42	%		12.92	%		12.83	%		12.19	%