EXHIBIT 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
April 15, 2003 President and CEO
or
Pamela M. Tracy
Investor Relations
Phone: 412/364-1913
WVS FINANCIAL CORP. ANNOUNCES THIRD QUARTER, AND NINE MONTHS
ENDED MARCH 31, 2003 NET INCOME AND EARNINGS PER SHARE
Pittsburgh, PA -- WVS Financial Corp. (NASDAQ: WVFC), the holding company
for West View Savings Bank, today reported that for the nine months ended March
31, 2003, diluted earnings per share totaled $0.95 compared to $1.21 for the
same period in 2002. Net income totaled $2,513,000 for the nine months ended
March 31, 2003 compared to net income of $3,315,000 for the same period in 2002.
The $802,000 decrease in net income during the period was primarily attributable
to a $1,354,000 decrease in net interest income and a $76,000 increase in
non-interest expense, which were partially offset by a $454,000 decrease in
income tax expense, a $128,000 decrease in the provision for loan losses, and a
$46,000 increase in non-interest income. The decrease in net interest income was
primarily attributable to lower rates earned on Company assets due to lower
market interest rates, and lower average balances of net loans receivable, which
were partially offset by lower rates paid on deposits and borrowings. The
Company experienced higher levels of repayments on its loan, investment and
mortgage-backed securities portfolios due to refinancing activities. The Company
used these proceeds to paydown short-term debt and to fund shorter term loans,
investments and mortgage-backed securities to better manage its interest rate
risk. The increase in non-interest expense was principally attributable to legal
and disposition costs associated with collecting past due loans and liquidating
collateral. The decrease in income tax expense was primarily attributable to
lower levels of taxable income, while the decrease in the allowance for loan
losses is due to reduced levels of net loans receivable and collections on past
due loans. The increase in non-interest income was principally attributable to
the sale of investments from the Company's investment portfolio.
Diluted earnings per share and net income for the quarter ended March 31,
2003 totaled $0.28 and $732,000, respectively, compared to $0.35 and $965,000
for the same period in 2002. The $233,000 decrease in net income for the quarter
ended March 31, 2003 was primarily attributable to a $458,000 decrease in net
interest income and a $14,000 decrease in non-interest income, which were
partially offset by a $147,000 decrease in income tax expense, a $89,000
decrease in provision for loan losses, and a $3,000 decrease in non-interest
expense. The decrease in net interest income was primarily attributable to lower
average balances of net loans receivable and lower rates earned on Company
assets due to lower market interest rates which were partially offset by lower
rates paid on deposits and borrowings. The Company experienced higher levels of
repayments on its loan, investment and mortgage-backed securities portfolios due
to refinancing activities. The Company used these proceeds to paydown short-term
debt and to fund shorter term loans, investments and mortgage-backed securities
to better manage its interest rate risk. The decrease in non-interest income was
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principally attributable to decreases in service charge fee income. The decrease
in income tax expense was principally attributable to lower levels of taxable
income. The decrease in allowance for loan losses is due to reduced levels of
net loans receivable and collections on past due loans.
As part of its asset/liability management strategy, the Company has limited
its origination of longer-term fixed rate loans to mitigate its exposure to a
rise in market interest rates. The Company will begin to originate longer-term
fixed rate loans for sale on a correspondent basis to increase non-interest
income and to contribute to net income. Despite the challenges of record low
market interest rates and the war with Iraq, the Company's return on equity and
return on assets for the nine months ended March 31, 2003 were 10.96% and 0.88%,
respectively.
WVS Financial Corp. owns 100% of the outstanding common stock of West View
Savings Bank. The Savings Bank is a Pennsylvania-chartered, FDIC savings bank
which conducts business in the North Hills suburbs of Pittsburgh, Pennsylvania.
--TABLES ATTACHED--
# # #
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except per share data)
March 31, June 30, March 31,
2003 2002 2002
(Unaudited) (Unaudited) (Unaudited)
----------- ----------- -----------
Total assets $368,242 $404,911 $390,813
Net loans receivable 107,819 152,905 161,275
Investment securities available-for-sale 4,274 8,426 1,925
Investment securities held-to-maturity 131,335 142,958 129,536
Mortgage-backed securities available-for-
sale 4,858 6,450 6,770
Mortgage-backed securities held-to-
maturity 101,146 76,093 74,089
Deposits 165,015 174,659 171,898
FHLB advances 151,487 159,937 173,787
Other borrowings 11,424 33,731 9,078
Equity 30,125 30,253 29,761
Book value per share 11.65 11.30 11.02
Return on average assets 0.88% 1.16% 1.15%
Return on average equity 10.96% 14.85% 14.79%
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
(Unaudited) (Unaudited)
--------------------------- -------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Interest income $ 4,636 $ 5,574 $ 15,092 $ 18,215
Interest expense 2,841 3,321 9,048 10,817
---------- ---------- ---------- ----------
Net interest income 1,795 2,253 6,044 7,398
Provision for loan losses (89) 0 (71) 57
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 1,884 2,253 6,115 7,341
Non-interest income 152 166 566 520
Non-interest expense 975 978 3,139 3,063
Income before income tax ---------- ---------- ---------- ----------
expense 1,061 1,441 3,542 4,798
Income taxes 329 476 1,029 1,483
---------- ---------- ---------- ----------
NET INCOME $732 $965 $2,513 $3,315
========== ========== ========== ==========
EARNINGS PER SHARE:
Basic $0.28 $0.36 $0.96 $1.21
Diluted $0.28 $0.35 $0.95 $1.21
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,593,546 2,714,480 2,629,122 2,736,254
Diluted 2,598,775 2,720,976 2,634,468 2,745,783
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