Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
July 19, 2007 President and CEO
or
Pamela M. Tracy
Investor Relations
Phone: 412/364-1913
WVS FINANCIAL CORP. ANNOUNCES INCREASED FOURTH QUARTER AND
FISCAL YEAR ENDED JUNE 30, 2007 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 $3,646,000 or $1.57 per
diluted share, for the fiscal year ended June 30, 2007 as compared to net income
of $2,846,000 or $1.21 per diluted share for the same period in 2006. The
$800,000 or 28% increase in net income during the fiscal year was primarily
attributable to a $1,537,000 increase in net interest income, which was
partially offset by a $476,000 increase in income tax expense, a $174,000 change
in provisions for loan losses, a $79,000 decrease in non-interest income, and a
$8,000 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 and lower average
balances of short-term borrowings, which more than offset lower average balances
of interest-earning assets and higher rates paid on short-term borrowings, time
deposits and money market accounts. The increase in income tax expense was
primarily attributable to higher levels of taxable income. The change in the
provision 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
2006, and a provision recorded in fiscal 2007 due to increased loan balances
outstanding. 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 in fiscal 2006, a decrease in deposit fee income, and decreases in
ATM and debit card fee income. The increase in non-interest expense was
primarily attributable to increases in employee related costs, which were
partially offset by decreases in correspondent bank service charges and other
operating costs.
Net income and diluted earnings per share for the quarter ended June 30,
2007 totaled $949,000 and $0.41, respectively, compared to $840,000 and $0.36
for the same period in 2006. The $109,000 or 13% increase in net income was
primarily attributable to a $190,000 increase in net interest income, which was
partially offset by a $71,000 increase in income tax expense and a $11,000
increase in non-interest expense. The increase in net interest income resulted
from lower average balances of short-term borrowings and the favorable impact of
higher short and intermediate term market interest rates on the Company's
interest earning assets, which more than offset lower average balances of
interest earning assets and higher rates paid on short-term borrowings and time
deposits. The increase in income tax expense
Page 4 of 7
<page>
was attributable to increased levels of taxable income. The increase in
non-interest expense was primarily attributable to increases in employee related
costs and data processing expense, which were partially offset by decreases in
provisions for losses on off-balance sheet liabilities.
President and Chief Executive Officer David J. Bursic commented: "Despite
a challenging interest rate environment, and lower earnings throughout much of
the banking industry, the Company and its employees delivered impressive gains
in net income, return on average stockholders' equity increased to 12.14% from
9.87% and book value per share increased to $13.49 from $12.60. I would like to
thank the Company's stakeholders - employees, customers, Board Members and
vendors - for their contribution to our success."
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)
June 30, June 30,
2007 2006
(Unaudited) (Unaudited)
------------ ------------
Total assets $ 408,076 $ 421,742
Investment securities held-to-maturity 202,664 187,952
Investment securities available-for-sale 8,933 8,469
Mortgage-backed securities held-to-
maturity 119,271 153,461
Mortgage-backed securities available-for-
sale 2,246 2,292
Net loans receivable 60,350 55,702
Deposits 159,377 151,713
FHLB advances: long-term 130,579 138,579
FHLB advances: short-term 0 23,150
Other short-term borrowings 82,950 76,048
Equity 31,293 29,418
Book value per share 13.49 12.60
Return on average assets 0.90% 0.66%
Return on average equity 12.14% 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 Twelve Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
-------------------------- -------------------------
2007 2006 2007 2006
----------- ----------- ----------- -----------
<s> <c> <c> <c> <c>
Interest income $ 5,910 $ 6,162 $ 24,310 $ 22,248
Interest expense 3,758 4,200 15,985 15,460
----------- ----------- ----------- -----------
Net interest income 2,152 1,962 8,325 6,788
Provision (recovery) for loan losses (13) (12) 13 (161)
----------- ----------- ----------- -----------
Net interest income after
provision (recovery) for loan losses 2,165 1,974 8,312 6,949
Non-interest income 160 160 626 705
Non-interest expense 904 893 3,529 3,521
----------- ----------- ----------- -----------
Income before income tax
expense 1,421 1,241 5,409 4,133
Income taxes 472 401 1,763 1,287
----------- ----------- ----------- -----------
NET INCOME $ 949 $ 840 $ 3,646 $ 2,846
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.41 $ 0.36 $ 1.57 $ 1.21
Diluted $ 0.41 $ 0.36 $ 1.57 $ 1.21
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,319,030 2,337,349 2,319,928 2,357,217
Diluted 2,319,965 2,339,962 2,321,536 2,359,996
</table>
Page 7 of 7