Exhibit 99
Release Date: Further Information:
IMMEDIATE RELEASE David J. Bursic
July 15, 2008 President and CEO
or
Pamela M. Tracy
Investor Relations
Phone: 412/364-1913
WVS FINANCIAL CORP. ANNOUNCES FOURTH QUARTER AND INCREASED
FISCAL YEAR ENDED JUNE 30, 2008 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 $3,772,000 or $1.67 per
diluted share, for the fiscal year ended June 30, 2008 as compared to net income
of $3,646,000 or $1.57 per diluted share for the same period in 2007. The
$126,000 or 3% increase in net income during the fiscal year was primarily
attributable to a $213,000 increase in net interest income and a $136,000 change
in provisions for loan losses, which were partially offset by a $107,000
increase in non-interest expense, an $87,000 increase in income tax expense, and
a $29,000 decrease in non-interest income. The increase in net interest income
primarily resulted from lower short-term borrowing costs and higher average
balances of earning assets (principally floating rate U.S. Government Agency
mortgage-backed securities), which were partially offset by lower average
balances of U.S. Government Agency bonds and lower rates earned on floating rate
mortgage-backed securities. The change in the provision for loan losses was
primarily attributable to $93,000 in recoveries on previously charged-off
commercial real estate loans. The increase in non-interest expense was primarily
attributable to increases in charitable contributions eligible for PA tax
credits and increases in employee related costs, while the increase in income
tax expense was primarily due to higher levels of taxable income. The decrease
in non-interest income was primarily due to lower levels of service charges on
customer accounts. During the fiscal year ended June 30, 2008, the Federal
Reserve Open Market Committee reduced its targeted rate for federal funds from
5.25% to 2.00% in response to turmoil in the global equity and fixed income
markets.
Net income and diluted earnings per share for the quarter ended June
30, 2008 totaled $738,000 and $0.33, respectively, compared to $949,000 and
$0.41 for the same period in 2007. The $211,000 or 22% decrease in net income
was primarily attributable to a $339,000 decrease in net interest income, which
was partially offset by a $72,000 decrease in income tax expense and a $47,000
change in the provision for loan losses. The decrease in net interest income was
primarily attributable to lower yields on the Company's floating-rate earning
assets and lower average balances of fixed-rate U.S. Government Agency bonds,
which were partially offset by lower rates paid on short-term borrowings, time
deposits and money market accounts. The decrease in income tax expense was
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primarily due to lower levels of taxable income, while the change in the
provision for loan losses was primarily due to a $38,000 recovery on a
previously charged-off commercial real estate loan.
President and Chief Executive Officer David J. Bursic remarked: "Fiscal
year 2008 presented a number of challenges to the financial services industry
including record loan charge-offs, volatile interest rates and sharply lower
economic growth. WVS Financial Corp. continued to emphasize a prudent lending
strategy, limited increases in controllable operating costs, and growth in
Company total capital and book value per share. During fiscal 2008, Company
total capital increased to $32 million from $31 million, book value per share
increased to $14.44 from $13.49 and return on average stockholders' equity
totaled 12.03%. The Company returned over $3 million to our shareholders by
repurchasing 107,376 shares of common stock totaling in excess of $1.75 million
and paying $1.44 million in dividends on our common shares."
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. In January 2008, West View Savings Bank began its
100th year of service to our communities. The Bank wishes to thank our customers
and host communities for allowing us to be their full service bank.
--TABLES ATTACHED--
# # #
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except per share data)
June 30, June 30,
2008 2007
(Unaudited) (Unaudited)
----------- -----------
Total assets $423,109 $408,076
Investment securities held-to-maturity 120,559 202,664
Investment securities available-for-sale 7,978 8,933
Mortgage-backed securities held-to-
maturity 213,690 119,271
Mortgage-backed securities available-for-
sale 2,215 2,246
Net loans receivable 56,477 60,350
Deposits 150,142 159,377
FHLB advances: long-term 135,579 130,579
FHLB advances: short-term 0 0
FRB short-term borrowings 80,600 0
Other short-term borrowings 20,000 82,950
Equity 32,148 31,293
Book value per share 14.44 13.49
Return on average assets 0.89% 0.90%
Return on average equity 12.03% 12.14%
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
Three Months Ended Twelve Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
-------------------------- --------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Interest income $ 4,957 $ 5,910 $ 23,681 $ 24,310
Interest expense 3,144 3,758 15,143 15,985
----------- ----------- ----------- -----------
Net interest income 1,813 2,152 8,538 8,325
Provision (recovery) for loan losses (60) (13) (123) 13
----------- ----------- ----------- -----------
Net interest income after
provision (recovery) for loan losses 1,873 2,165 8,661 8,312
Non-interest income 157 160 597 626
Non-interest expense 892 904 3,636 3,529
----------- ----------- ----------- -----------
Income before income tax
expense 1,138 1,421 5,622 5,409
Income taxes 400 472 1,850 1,763
----------- ----------- ----------- -----------
NET INCOME $ 738 $ 949 $ 3,772 $ 3,646
=========== =========== =========== ===========
EARNINGS PER SHARE:
Basic $ 0.33 $ 0.41 $ 1.67 $ 1.57
Diluted $ 0.33 $ 0.41 $ 1.67 $ 1.57
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,226,254 2,319,030 2,252,604 2,319,928
Diluted 2,226,260 2,319,965 2,252,906 2,321,536
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