[PVF CAPITAL CORP. LOGO APPEARS HERE]
PRESS ANNOUNCEMENT
Date: January 23, 2009
Contact: Edward B. Debevec (440) 248-7171
PVF Capital Corp. announces quarterly earnings.
PVF Capital Corp., the parent company of Park View Federal Savings Bank,
announced a loss of $2,722,000, or $0.35 basic earnings per share and diluted
earnings per share for the quarter ended December 31, 2008 as compared to
earnings of $732,000, or $0.09 basic earnings per share and diluted earnings per
share for the prior year comparable period. For the six-month period ended
December 31, 2008, the Company reported a loss of $3,623,000, or $0.47 basic
earnings per share and diluted earnings per share, as compared to earnings of
$1,343,000, or $0.17 basic earnings per share and diluted earnings per share,
for the prior year period.
Chairman John R. Male commented that, "Park View Federal continues to be
well-capitalized in every respect. Deposit flows are strong as the Bank
continues to attract new depositors. Notwithstanding the weak economy and the
decline in home values, Park View remains committed to financing the needs of
families right here in northeast Ohio and filling the roll of community banker
that is so vitally needed in these challenging times." Looking ahead Mr. Male
added that, "Our home lending activity is picking up dramatically and although
we expect 2009 to present many challenges, we are optimistic about the
opportunities that lie ahead."
The decline in earnings for the current three- and six-month periods was
primarily attributable to a decrease in net interest income that resulted from
an increase in nonperforming loans and an increase in the provision for loan
losses in order to reflect current economic conditions. In addition,
non-interest income for the current three-month period was impacted positively
by gains on the sale of securities and for the current six-month period
negatively by the impairment of the FHLMC and FNMA preferred stock. Lastly, the
increase in non-interest expense for the three- and six-month periods was
primarily the result of increases in a one-time severance accrual and other
employee costs; an increase in the cost of FDIC insurance due to higher
assessment rates charged on deposits; and, real estate owned expenses
attributable to the maintenance and disposition of properties acquired through
foreclosure.
As of December 31, 2008, PVF Capital Corp. reported assets of $903.1 million, an
increase of $35.7 million, or 4.1%, from the prior fiscal year ended June 30,
2008. Total stockholders' equity of PVF Capital Corp. was $66.0 million at
December 31, 2008.
Visit our web site at www.pvfsb.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 stock trades on the NASDAQ Capital Market under the
symbol PVFC.
PVF CAPITAL CORP.
30000 Aurora Road
Solon, OH 44139
440-248-7171
SUMMARY OF FINANCIAL HIGHLIGHTS
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
(Dollars in thousands) DECEMBER 31, JUNE 30,
2008 2008
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ASSETS
- ------
Cash and cash equivalents $ 33,340 $ 17,804
Investment securities 10,049 9,470
Loans receivable 722,056 714,492
Loans receivable held for sale 4,283 7,831
Mortgage-backed securities 57,441 55,151
Other assets 75,892 62,654
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Total Assets $903,061 $867,402
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LIABILITIES
- -----------
Deposits $696,450 $659,386
Borrowed money 106,375 114,950
Other liabilities 34,282 23,991
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Total Liabilities 837,107 798,327
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Total Stockholders' Equity 65,954 69,075
-------- --------
Total Liabilities and
Stockholders' Equity $903,061 $867,402
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CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
(Dollars in thousands except per share data) DECEMBER 31, DECEMBER 31,
--------------------- ------------------------
2008 2007 2008 2007
Loans $10,928 $13,184 $22,341 $27,112
Mortgage-backed securities 687 314 1,388 632
Investments 348 969 725 2,015
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Interest income 11,963 14,467 24,454 29,759
Deposits 6,250 7,411 12,192 14,727
Borrowings 1,260 1,790 2,505 3,909
------- ------- ------- -------
Interest expense 7,510 9,201 14,697 18,636
Net interest income 4,453 5,266 9,757 11,123
Provision for loan losses 3,641 82 4,332 675
------- ------- ------- -------
Net interest income after provision for
loan losses 812 5,184 5,425 10,448
Mortgage-banking activities 420 326 878 726
Impairment of securities (102) 0 (1,841) 0
Gain on sale of securities 666 0 666 0
Other, net 196 508 435 906
------- ------- ------- -------
Total noninterest income 1,180 834 138 1,632
Compensation and benefits 3,016 2,630 5,574 5,594
Office occupancy and equipment 699 813 1,406 1,615
Federal deposit insurance premium 191 19 332 39
Real estate owned expense 538 152 727 352
Other 1,571 1,411 2,912 2,711
------- ------- ------- -------
Total noninterest expense 6,015 5,025 10,951 10,311
------- ------- ------- -------
Income before federal income tax provision (4,023) 993 (5,388) 1,769
Federal income tax provision (1,301) 261 (1,765) 426
------- ------- ------- -------
Net income ($2,722) $ 732 ($3,623) $ 1,343
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BASIC EARNINGS PER SHARE ($0.35) $ 0.09 ($0.47) $ 0.17
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DILUTED EARNINGS PER SHARE ($0.35) $ 0.09 ($0.47) $ 0.17
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