Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
May 2, 2006 President and CEO
or
Pamela M. Tracy
Investor Relations
Phone: 412/364-1913
WVS FINANCIAL CORP. ANNOUNCES INCREASED THIRD QUARTER AND NINE
MONTHS ENDED MARCH 31, 2006 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 and diluted earnings per
share for the quarter ended March 31, 2006 of $788,000 and $0.34, respectively,
compared to $564,000 and $0.23 for the same period in 2005. The $224,000
increase in net income during the quarter was primarily attributable to a
$372,000 increase in net interest income, a $33,000 increase in credit
provisions for loan losses, a $19,000 decrease in non-interest expense and a
$12,000 increase in non-interest income, which were partially offset by a
$212,000 increase in income tax expense. The increase in net interest income was
primarily the result of higher yields earned on interest-earning assets and
higher average balances of floating rate mortgage-backed securities. The
increase in income tax expense was primarily due to increased levels of taxable
income.
Net income and diluted earnings per share for the nine months ended March
31, 2006 totaled $2,006,000 and $0.85, respectively, compared to $1,987,000 and
$0.81 for the same period in 2005. The $19,000 increase in net income during the
period was primarily attributable to a $230,000 increase in net interest income,
a $215,000 change in the provision for loans losses and a $42,000 decrease in
non-interest expense, which were partially offset by a $287,000 decrease in
non-interest income and a $181,000 increase in income tax expense. The increase
in net interest income reflects the increase in short-term market interest
rates, higher average balances of floating rate mortgage-backed securities and
higher overall yields on interest-earning assets, which more than offset higher
rates paid on deposits and borrowings. The change in the provision for loan
losses was primarily
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attributable to a $149,000 credit provision for loan losses during the nine
months ended March 31, 2006 as opposed to a $66,000 provision taken in fiscal
2005. The decrease in non-interest expense was primarily attributable to
decreased employee related costs and fixed asset depreciation. The decrease in
non-interest income was a result of a $305,000 decrease in pre-tax gains
recognized on the sale of investments from the Company's investment portfolio
during the nine months ended March 31, 2006 when compared to the same period in
2005. The increase in income tax expense was primarily the result of increased
levels of taxable income.
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,
2006 2005
(Unaudited) (Unaudited)
----------- ----------
Total assets $ 450,233 $ 421,044
Investment securities held-to-maturity 212,926 173,911
Investment securities available-for-sale 482 9,155
Mortgage-backed securities held-to-
maturity 164,930 159,031
Mortgage-backed securities available-for-
sale 2,329 3,120
Net loans receivable 55,793 60,151
Deposits 151,923 164,706
FHLB advances 152,636 155,036
Other borrowings 113,343 69,680
Equity 29,136 29,201
Book value per share 12.43 12.20
Return on average assets 0.62% 0.71%
Return on average equity 9.28% 10.03%
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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)
-------------------------- --------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Interest income $ 5,954 $ 4,509 $ 16,087 $ 13,344
Interest expense 4,091 3,018 11,260 8,747
----------- ----------- ----------- -----------
Net interest income 1,863 1,491 4,827 4,597
Provision for loan losses (38) (5) (149) 66
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 1,901 1,496 4,976 4,531
Non-interest income 171 159 545 832
Non-interest expense 872 891 2,629 2,671
----------- ----------- ----------- -----------
Income before income tax
expense 1,200 764 2,892 2,692
Income taxes 412 200 886 705
----------- ----------- ----------- -----------
NET INCOME $ 788 $ 564 $ 2,006 $ 1,987
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.34 $ 0.23 $ 0.85 $ 0.81
Diluted $ 0.34 $ 0.23 $ 0.85 $ 0.81
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,346,959 2,430,679 2,363,817 2,443,163
Diluted 2,348,619 2,435,935 2,366,651 2,448,792
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