Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
April 30, 2004 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, 2004 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 March 31, 2004 totaled $0.18 and $464,000,
respectively, compared to $0.28 and $732,000 for the same period in 2003. The
$268,000 decrease in net income for the quarter ended March 31, 2004 was
primarily attributable to a $444,000 decrease in net interest income and a
$75,000 decrease in credit provisions for loan losses, which was partially
offset by a $164,000 decrease in income tax expense, a $76,000 decrease in
non-interest expense, and a $11,000 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 which was partially offset
by lower rates paid on deposits and short-term borrowings. 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, investments and floating rate mortgage-backed securities to
better manage its interest rate risk. The decrease in credit provisions for loan
losses was primarily due to a decrease in paydowns on the Company's loan
portfolio. The decrease in income tax expense was principally attributable to
lower levels of taxable income. The decrease in non-interest expense was
primarily attributable to a decrease in payroll and benefit related costs which
were partially offset by an increase in legal expenses and costs associated with
the work-out
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of non-performing assets. The increase in non-interest income was principally
attributable to an increase in deposit account fee income.
Net income and diluted earnings per share for the nine months ended March
31, 2004 totaled $1,586,000 and $0.62, respectively, compared to $2,513,000 and
$0.95 for the same period in 2003. The $927,000 decrease in net income during
the period was primarily attributable to a $2,456,000 decrease in net interest
income and a $47,000 decrease in non-interest income, which were partially
offset by a $700,000 increase in credit provisions for loan losses, a $467,000
decrease in income tax expense, and a $409,000 decrease in non-interest expense.
The decrease in net interest income reflects continued low market interest
rates, higher levels of loan repayments, the residual effects of higher cost
long-term borrowings and lower overall yields on earning assets. The Company
continued to experience higher levels of repayments on its loan, investment and
mortgage-backed securities portfolios due to refinancing activities. The Company
used these proceeds to fund shorter-term loans, investments and floating rate
mortgage-backed securities to better manage its interest rate risk. The decrease
in non-interest income was principally attributable to a decrease in pre-tax
gains recognized on the sale of investments from the Company's investment
portfolio, which was partially offset by an increase in deposit account fee
income. The increase in credit provisions 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 income tax expense was primarily a
result of lower levels of taxable income. The decrease in non-interest expense
was principally attributable to decreases in payroll and benefit related costs,
charitable contributions eligible for PA tax credits, and legal expenses and
costs associated with the work-out on non-performing assets.
Return on equity and return on assets for the nine months ended March 31,
2004 were 7.38% and 0.54%, 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,
2004 2003 2003
(Unaudited) (Unaudited) (Unaudited)
----------- ---------- -----------
Total assets $400,180 $367,188 $368,242
Net loans receivable 70,373 91,669 107,819
Investment securities available-for-sale 9,320 25,641 4,274
Investment securities held-to-maturity 212,165 121,841 131,335
Mortgage-backed securities available-for-
sale 3,714 4,387 4,858
Mortgage-backed securities held-to-
maturity 88,621 107,492 101,146
Deposits 154,317 169,317 165,015
FHLB advances 149,736 153,390 151,487
Other borrowings 62,718 9,453 11,424
Equity 29,538 30,618 30,125
Book value per share 11.83 11.86 11.65
Return on average assets 0.54% 0.89% 0.88%
Return on average equity 6.98% 10.97% 10.96%
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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)
-------------------------- --------------------------
2004 2003 2004 2003
-------- -------- -------- --------
Interest income $ 4,067 $ 4,636 $ 11,833 $ 15,092
Interest expense 2,716 2,841 8,245 9,048
----------- ----------- ----------- -----------
Net interest income 1,351 1,795 3,588 6,044
Provision for loan losses (14) (89) (771) (71)
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 1,365 1,884 4,359 6,115
Non-interest income 163 152 519 566
Non-interest expense 899 975 2,730 3,139
----------- ----------- ----------- -----------
Income before income tax
expense 629 1,061 2,148 3,542
Income taxes 165 329 562 1,029
----------- ----------- ----------- -----------
NET INCOME $ 464 $ 732 $ 1,586 $ 2,513
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.18 $ 0.28 $ 0.62 $ 0.96
Diluted $ 0.18 $ 0.28 $ 0.62 $ 0.95
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,525,612 2,593,546 2,553,860 2,629,122
Diluted 2,533,697 2,598,775 2,562,887 2,634,468
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