Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
January 19, 2007 President and CEO
or
Pamela M. Tracy
Investor Relations
Phone: 412/364-1913
WVS FINANCIAL CORP. ANNOUNCES INCREASED SECOND QUARTER AND SIX
MONTHS ENDED DECEMBER 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 of $1,742,000 or $0.75 per
diluted share, for the six months ended December 31, 2006 as compared to net
income of $1,218,000 or $0.51 per diluted share for the same period in 2005. The
$524,000 or 43% increase in net income during the six months was primarily
attributable to a $1,024,000 increase in net interest income, which was
partially offset by a $302,000 increase in income tax expense, a $102,000
decrease in credit provisions for loan losses, a $60,000 decrease in
non-interest income and a $36,000 increase in non-interest expense. 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. The decrease in the recovery for loan losses
is primarily due to the absence of a reallocation of loan loss reserves and
lower recoveries on past due loans recorded in fiscal 2005. The decrease in
non-interest income was primarily attributable to the absence of a $30,000 gain
recognized on the sale of mortgage-backed securities. The increase in
non-interest expense was primarily attributable to a $27,000 increase in
employee related costs.
Net income and diluted earnings per share for the quarter ended December
31, 2006 totaled $837,000 and $0.36, respectively, compared to $610,000 and
$0.26 for the same period in 2005. The $227,000 or 37% increase in net income
was primarily attributable to a $399,000 increase in net interest income, which
was partially offset by a $99,000 increase in income tax expense, a $45,000
decrease in credit provisions for loan losses, a $22,000 increase in
non-interest expense and a $6,000 decrease in non-interest income. 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 attributable to
increased levels of taxable income. The increase in non-interest expense was
primarily attributable to increases in charitable contributions eligible for PA
tax credits.
Page 4 of 7
<page>
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--
# # #
Page 5 of 7
<page>
WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except per share data)
December 31, June 30,
2006 2006
(Unaudited) (Unaudited)
------------ ------------
Total assets $ 417,477 $ 421,742
Investment securities held-to-maturity 206,167 187,952
Investment securities available-for-sale 488 8,469
Mortgage-backed securities held-to-
maturity 136,365 153,461
Mortgage-backed securities available-for-
sale 2,279 2,292
Net loans receivable 57,487 55,702
Deposits 156,726 151,713
FHLB advances: long-term 133,579 138,579
FHLB advances: short-term 0 23,150
Other short-term borrowings 92,900 76,048
Equity 30,011 29,418
Book value per share 12.99 12.60
Return on average assets 0.83% 0.66%
Return on average equity 11.82% 9.87%
Page 6 of 7
<page>
WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
<table>
<caption>
Three Months Ended Six Months Ended
December 31, December 31,
(Unaudited) (Unaudited)
------------------------- --------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
<s> <c> <c> <c> <c>
Interest income $ 6,230 $ 5,293 $ 12,348 $ 10,133
Interest expense 4,322 3,784 8,360 7,169
----------- ----------- ----------- -----------
Net interest income 1,908 1,509 3,988 2,964
(Recovery) provision for loan losses 0 (45) (9) (111)
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 1,908 1,554 3,997 3,075
Non-interest income 161 167 313 373
Non-interest expense 890 868 1,792 1,756
----------- ----------- ----------- -----------
Income before income tax
expense 1,179 853 2,518 1,692
Income taxes 342 243 776 474
----------- ----------- ----------- -----------
NET INCOME $ 837 $ 610 $ 1,742 $ 1,218
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.36 $ 0.26 $ 0.75 $ 0.51
Diluted $ 0.36 $ 0.26 $ 0.75 $ 0.51
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,310,596 2,356,470 2,318,890 2,372,062
Diluted 2,312,838 2,359,671 2,320,980 2,375,483
</table>
Page 7 of 7