Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
October 16, 2006 President and CEO
or
Pamela M. Tracy
Investor Relations
Phone: 412/364-1913
WVS FINANCIAL CORP. ANNOUNCES FIRST QUARTER
EARNINGS PER SHARE AND NET INCOME
Pittsburgh, PA -- WVS Financial Corp. (NASDAQ: WVFC), the holding company
for West View Savings Bank, today reported net income of $904,000 or $0.39 per
diluted share, for the three months ended September 30, 2006 as compared to net
income of $608,000 or $0.25 per diluted share for the same period in 2005. The
$296,000 increase in net income during the quarter was primarily attributable to
a $625,000 increase in net interest income, which was partially offset by a
$204,000 increase in income tax expense, a $57,000 decrease in credit provisions
for loan losses, a $55,000 decrease in non-interest income and an $13,000
increase in non-interest expense. As part of its asset/liability management
strategy, the Company maintained an asset sensitive financial position. An asset
sensitive position may benefit earnings during a period of rising interest rates
and reduce earnings during a period of declining interest rates.
The increase in net interest income resulted from the favorable impact of
higher short and intermediate term market interest rates on the Company's
interest-earning assets, which more than offset higher rates paid on other
short-term borrowings and time deposits. The increase in income tax expense was
primarily attributable to higher levels of taxable income and a higher effective
income tax rate. The decrease in non-interest income was primarily attributable
to the absence of a $30,000 pre-tax gain recognized on the sale of
mortgage-backed securities from the Company's portfolio during the three months
ended September 30, 2005. The increase in non-interest expense was primarily
attributable to increases in employee related costs, which were partially offset
by decreases in other operating costs.
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 from six offices located 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)
September 30, June 30,
2006 2006
(Unaudited) (Unaudited)
----------- -----------
Total assets $423,183 $421,742
Investment securities held-to-maturity 202,309 187,952
Investment securities available-for-sale 488 8,469
Mortgage-backed securities held-to-
maturity 145,857 153,461
Mortgage-backed securities available-for-
sale 2,306 2,292
Net loans receivable 57,224 55,702
Deposits 162,660 151,713
FHLB advances: long-term 133,579 138,579
FHLB advances: short-term 0 23,150
Other borrowings 91,500 76,048
Equity 29,728 29,418
Book value per share 12.81 12.60
Return on average assets 0.88% 0.66%
Return on average equity 12.35% 9.87%
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
Three Months Ended
September 30,
(Unaudited)
--------------------------
2006 2005
----------- -----------
Interest income $ 6,118 $ 4,840
Interest expense 4,038 3,385
----------- -----------
Net interest income 2,080 1,455
Recovery for loan losses (9) (66)
----------- -----------
Net interest income after recovery for loan losses 2,089 1,521
Non-interest income 152 207
Non-interest expense 902 889
----------- -----------
Income before income tax expense 1,339 839
Income taxes 435 231
----------- -----------
NET INCOME $ 904 $ 608
=========== ===========
EARNINGS PER SHARE:
Basic $ 0.39 $ 0.25
Diluted $ 0.39 $ 0.25
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,327,183 2,387,653
Diluted 2,329,120 2,391,294
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