Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
January 30, 2004 President and CEO
or
Pamela M. Tracy
Investor Relations
Phone: 412/364-1913
WVS FINANCIAL CORP. ANNOUNCES SECOND QUARTER, AND SIX MONTHS
ENDED DECEMBER 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 diluted earnings per share and net
income for the quarter ended December 31, 2003 totaled $0.30 and $770,000,
respectively, compared to $0.30 and $781,000 for the same period in 2002. The
$11,000 decrease in net income for the quarter ended December 31, 2003 was
primarily attributable to a $809,000 decrease in net interest income and a
$11,000 decrease in non-interest income, which was partially offset by a
$624,000 decrease in provision for loan losses, a $107,000 decrease in
non-interest expense, and a $78,000 decrease in income tax expense. The decrease
in net interest income was primarily attributable to lower rates earned on
Company assets due to lower market interest rates which was partially offset by
lower rates paid on deposits. The Company experienced higher levels of
repayments on its loan and securities portfolios due to refinancing activities.
The Company redeployed these proceeds into shorter- term loans and investment
securities to better manage its interest rate risk. The decrease in non-interest
income was principally attributable to decreases in ATM fee income. The decrease
in provision for loan losses was primarily due to the work-out of non-performing
assets and paydowns on the Company's loan portfolio. The decrease in
non-interest expense was primarily attributable to decreases in payroll related
costs. The decrease in income tax expense was principally attributable to lower
levels of taxable income.
Net income and diluted earnings per share for the six months ended December
31, 2003 totaled $1,122,000 and $0.44, respectively, compared to $1,780,000 and
$0.67 for the same period in 2002. The $658,000 decrease in net income during
the period was primarily attributable to a $2,012,000 decrease in net interest
income and a $58,000 decrease in non-
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interest income, which were partially offset by a $775,000 decrease in provision
for loan losses, a $334,000 decrease in non-interest expense, and a $303,000
decrease in income tax expense. The decrease in net interest income reflects
continued low market interest rates, higher levels of loan repayments, the
residual effects of higher costs long-term borrowings and lower overall yields
on earning assets and mortgage-backed securities to better manage its interest
rate risk. The decrease in non-interest income was principally attributable to
$64,000 of pre-tax gains recognized on the sale of investments from the
Company's investment portfolio in the six months ended December 31, 2002. The
decrease in provision for loan losses was primarily attributable to the work-out
of non-performing assets and paydowns on the Company's loan portfolio. The
decrease in non-interest expense was principally attributable to decreases in
charitable contributions eligible for PA tax credits, payroll related costs, and
legal expenses and costs associated with the work-out of non-performing assets.
The decrease in income tax expense was primarily a result of lower levels of
taxable income.
Return on equity and return on assets for the six months ended December 31,
2003 were 7.38% and 0.58%, 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)
December 31, June 30, December 31,
2003 2003 2002
(Unaudited) (Unaudited) (Unaudited)
----------- ----------- -----------
Total assets $417,305 $367,188 $408,236
Net loans receivable 71,894 91,669 126,847
Investment securities available-for-sale 8,717 25,641 3,154
Investment securities held-to-maturity 249,799 121,841 167,564
Mortgage-backed securities available-for-
sale 3,928 4,387 5,586
Mortgage-backed securities held-to-
maturity 66,401 107,492 86,515
Deposits 165,956 169,317 165,860
FHLB advances 149,236 153,390 169,287
Other borrowings 67,848 9,453 38,184
Equity 30,444 30,618 30,088
Book value per share 11.96 11.86 11.56
Return on average assets 0.58% 0.89% 0.92%
Return on average equity 7.38% 10.97% 11.65%
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
Three Months Ended Six Months Ended
December 31, December 31,
(Unaudited) (Unaudited)
-------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Interest income $ 3,956 $ 5,023 $ 7,766 $ 10,455
Interest expense 2,760 3,018 5,529 6,206
----------- ----------- ----------- -----------
Net interest income 1,196 2,005 2,237 4,249
Provision for loan losses (624) 0 (757) 18
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 1,820 2,005 2,994 4,231
Non-interest income 161 172 356 414
Non-interest expense 938 1,045 1,830 2,164
----------- ----------- ----------- -----------
Income before income tax
expense 1,043 1,132 1,520 2,481
Income taxes 273 351 398 701
----------- ----------- ----------- -----------
NET INCOME $ 770 $ 781 $ 1,122 $ 1,780
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.30 $ 0.30 $ 0.44 $ 0.67
Diluted $ 0.30 $ 0.30 $ 0.44 $ 0.67
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,560,420 2,631,112 2,567,831 2,646,522
Diluted 2,569,578 2,636,633 2,577,330 2,651,926
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