Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
January 20, 2005 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, 2004 NET INCOME AND EARNINGS PER SHARE
Pittsburgh, PA -- WVS Financial Corp. (NASDAQ: WVFC), the holding company
for West View Savings Bank, today reported net income of $1,423,000 or $0.58 per
diluted share, for the six months ended December 31, 2004 as compared to net
income of $1,122,000 or $0.44 per diluted share for the same period in 2003. The
$301,000 increase in net income during the period was primarily attributable to
a $870,000 increase in net interest income, a $318,000 increase in non-interest
income and a $49,000 decrease in non-interest expense, which were partially
offset by a $829,000 increase in provision for loan losses and a $107,000
increase in income tax expense. The increase in net interest income reflects the
increase in short-term market interest rates, higher overall yields on
adjustable rate earning assets and higher average balances of investments and
mortgage-backed securities. The increase in non-interest income was primarily
attributable to $329,000 of pre-tax gains recognized on the sale of investments
from the Company's investment portfolio during the six months ended December 31,
2004. The decrease in non-interest expense was primarily attributable to
decreases in legal fees and costs associated with the work-out of non-performing
assets. The increase in the provision for loan losses was primarily attributable
to a $78 thousand provision for loan losses in the first quarter of fiscal 2005
as opposed to a $757 thousand credit provision taken in the first and second
quarters of fiscal 2004 due to the work-out of non-performing assets. The
increase in income tax expense was primarily the result of increased levels of
taxable income.
Net income and diluted earnings per share for the quarter ended December
31, 2004 totaled $589,000 and $0.24, respectively, compared to a $770,000 and
$0.30 for the same period in 2003. The $181,000 decrease in net income during
the quarter was primarily
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attributable to a $617,000 decrease in credit provisions for loan losses which
was partially offset by a $232,000 increase in net interest income, a $105,000
increase in non-interest income, a $64,000 decrease in income tax expense and a
$35,000 decrease in non-interest expense. The change in the provision for loan
losses was primarily due to the reduced credit provisions recognized in the
work-out of non-performing assets during the same quarter of the prior fiscal
year. The increase in non-interest income was primarily the result of higher
yields earned on investment and mortgage-backed securities and higher average
balances of mortgage-backed securities. The increase in non-interest income was
primarily the result of a $99,000 pre-tax gain recognized during the quarter on
the sale of investments from the Company's investment portfolio. The decrease in
income tax expense was due to decreased levels of taxable income, while the
decrease in non-interest expense was primarily attributable to decreases in
legal fees associated with the work-out of non-performing assets.
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,
2004 2004
(Unaudited) (Unaudited)
----------- -----------
Total assets $422,950 $433,624
Investment securities held-to-maturity 220,591 269,173
Investment securities available-for-sale 5,352 4,416
Mortgage-backed securities held-to-
maturity 115,766 72,233
Mortgage-backed securities available-for-
sale 3,079 3,357
Net loans receivable 61,548 67,968
Deposits 156,881 160,563
FHLB advances 185,136 149,736
Other borrowings 48,980 91,639
Equity 29,267 29,199
Book value per share 11.97 11.84
Return on average assets 0.70% 0.58%
Return on average equity 9.78% 7.64%
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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)
----------------------------- ----------------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Interest income $ 4,405 $ 3,956 $ 8,835 $ 7,766
Interest expense 2,977 2,760 5,728 5,529
----------- ----------- ----------- -----------
Net interest income 1,428 1,196 3,107 2,237
Provision for loan losses (7) (624) 72 (757)
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 1,435 1,820 3,035 2,994
Non-interest income 266 161 674 356
Non-interest expense 903 938 1,781 1,830
----------- ----------- ----------- -----------
Income before income tax
expense 798 1,043 1,928 1,520
Income taxes 209 273 505 398
----------- ----------- ----------- -----------
NET INCOME $ 589 $ 770 $ 1,423 $ 1,122
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.24 $ 0.30 $ 0.58 $ 0.44
Diluted $ 0.24 $ 0.30 $ 0.58 $ 0.44
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,445,349 2,560,420 2,449,269 2,567,831
Diluted 2,451,242 2,569,578 2,455,084 2,577,330
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