1
PRESS ANNOUNCEMENT
DATE: APRIL 18, 2007
CONTACT: C. KEITH SWANEY
(440) 248-7171
PVF CAPITAL CORP. ANNOUNCES QUARTERLY EARNINGS AND CASH DIVIDEND.
PVF Capital Corp., the parent company of Park View Federal Savings Bank,
announced earnings of $1,177,000, or $0.15 basic earnings per share and $0.15
diluted earnings per share, for the quarter ended March 31, 2007 as compared to
earnings of $1,267,000, or $0.16 basic earnings per share and $0.16 diluted
earnings per share, for the prior year comparable period.
Earnings were $3,877,000, or $0.50 basic earnings per share and $0.49 diluted
earnings per share, for the nine-month period ended March 31, 2007 as compared
to $3,646,000, or $0.47 basic earnings per share and $0.46 diluted earnings per
share, for the prior year comparable period.
Earnings for the current three- and nine-month periods were impacted by a
decline in net interest income that was attributable to margin compression and a
soft local real estate market. This decline was offset by a decrease in the
provision for loan losses and an increase in noninterest income. The decline in
the provision for loan losses is attributable to a change in asset
classification methodology implemented pursuant to the release of the
Interagency Policy Statement on the Allowance for Loan and Lease Losses. This
resulted in increased allocation to specific valuation allowance and a decreased
allocation to the general valuation allowance for criticized loans.
The increase in noninterest income for the three month period is attributable to
an improvement in net gains on the sales of mortgage loans, which represented an
increase of $166,000 over the prior year comparable period and improved earnings
on bank-owned life insurance, which represented an increase of $117,000 over the
prior period.
The increase in noninterest income for the nine month period is attributable to
a change in fair value of mortgage banking derivatives that represented a
$463,000 increase over the prior period, the reversal of a market adjustment for
loans held for sale which represented an increase of $187,000, and an increase
in gains on the sale of real estate owned, which represented an increase of
$272,000 over the prior period.
As of March 31, 2007, PVF Capital Corp. reported assets of $907.6 million, an
increase of $1.5 million or 0.2% from the fiscal year ended June 30, 2006. Total
stockholders' equity of PVF Capital Corp. was $71.3 million at March 31, 2007.
Annualized return on assets and return on equity were 0.57% and 7.36%,
respectively, for the nine months ended March 31, 2007.
On March 27, 2007, the Board of Directors of PVF Capital Corp. declared a
quarterly cash dividend on the Company's outstanding common stock. The cash
dividend will be in the amount of $0.074 per share payable on May 7, 2007 to the
stockholders of record at the close of business on April 30, 2007.
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
2
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 Small-Cap market under the
symbol PVFC.
3
Summary of Financial Highlights
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
(Dollars in thousands) MARCH 31, JUNE 30,
2007 2006
----------- -----------
ASSETS
- ------
Cash and cash equivalents $ 25,735 $ 19,738
Investment securities 58,000 58,000
Loans receivable 729,746 736,065
Loans receivable held for sale 9,387 10,698
Mortgage-backed securities 26,670 27,578
Other assets 58,015 54,002
--------- ---------
Total Assets $ 907,553 $ 906,081
========= =========
LIABILITIES
- -----------
Deposits $667,025 $ 656,864
Borrowed money 147,000 156,773
Other liabilities 22,205 23,471
--------- ---------
Total Liabilities 836,230 837,108
--------- ---------
Total Stockholders' Equity 71,323 68,973
Total Liabilities and Stockholders' Equity $ 907,553 $ 906,081
========= =========
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
(Dollars in thousands except per share data) MARCH 31, MARCH 31,
----------------------- -----------------------
2007 2006 2007 2006
Interest income $15,065 $14,328 $46,177 $40,193
Interest expense 9,101 7,391 27,244 20,115
------- ------- ------- -------
Net interest income 5,964 6,937 18,933 20,078
Provision for loan losses (1) 352 91 646
------- ------- ------- -------
Net interest income after provision for loan losses 5,965 6,585 18,842 19,432
Total noninterest income 984 534 2,974 1,875
Total noninterest expense 5,302 5,297 16,258 16,114
------ ------ ------- -------
Income before federal income tax provision 1,647 1,822 5,558 5,193
Federal income tax provision 470 555 1,681 1,547
------- ------- ------- -------
Net income $ 1,177 $ 1,267 $ 3,877 $ 3,646
======= ======= ======= =======
BASIC EARNINGS PER SHARE $ 0.15 $ 0.16 $ 0.50 $ 0.47
======= ======= ======= =======
DILUTED EARNINGS PER SHARE $ 0.15 $ 0.16 $ 0.49 $ 0.46
======= ======= ======= =======