EX-99 2 ex99.txt EX-99 Exhibit 99 Release Date: Further Information: IMMEDIATE RELEASE David J. Bursic January 23, 2009 President and CEO or Pamela M. Gregio Investor Relations Phone: 412/364-1913 WVS FINANCIAL CORP. ANNOUNCES SECOND QUARTER AND SIX MONTHS ENDED DECEMBER 31, 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 $1,768,000 or $0.81 per diluted share, for the six months ended December 31, 2008 as compared to net income of $2,072,000 or $0.91 per diluted share for the same period in 2007. The $304,000 decrease in net income during the six months was primarily attributable to a $441,000 decrease in net interest income, a $40,000 increase in non-interest expense and a $27,000 change in provisions for loan losses, which were partially offset by a $182,000 decrease in income tax expense and a $22,000 increase in non-interest income. The decrease in net interest income primarily resulted from lower average balances of callable U.S. Government Agency bonds and lower rates earned on floating rate mortgage-backed securities, which were partially offset by lower rates paid on short-term borrowings, time deposits and money market accounts, and lower average balances of short-term borrowings and time deposits. The increase in non-interest expense was primarily attributable to increases in employee related costs, while the change in provisions for loan losses was primarily attributable to higher average loan balances recorded in fiscal 2009. The decrease in income tax expense was primarily attributable to lower levels of taxable income, while the increase in non-interest income was primarily attributable to higher levels of ATM and debit card fee income. During the six months ended December 31, 2008, the Federal Reserve Open Market Committee reduced its targeted rate for federal funds from 2.00% to a range of 0.00% to 0.25% in response to turmoil in the global equity and fixed income markets. Net income and diluted earnings per share for the quarter ended December 31, 2008 totaled $1,012,000 and $0.47, respectively, compared to $1,048,000 and $0.46 for the same period in 2007. The $36,000 decrease in net income was primarily attributable to a $38,000 increase in income tax expense, a $16,000 change in the provision for loan losses, and a $7,000 increase in non-interest expense, which were partially offset by a $14,000 increase in net interest income and an $11,000 increase in non-interest income. The increase in income tax expense was primarily due to a decrease in the Company's deferred tax assets while the increase in provision for loan losses was primarily attributable to higher average loan balances recorded for the period. Page 4 of 7 The increase in net interest income was primarily attributable to lower rates paid on short-term borrowings, time deposits and money market accounts, and lower average balances of short-term borrowings, which were partially offset by lower average balances of callable U.S. Government Agency bonds, and lower rates earned on floating rate mortgage-backed securities. The increase in non-interest income was primarily attributable to higher levels of ATM and debit card fee income. Market interest rates continue to decline across the globe. Money center and regional banks continued to record large write-offs for sub-prime loans, financial derivatives and investments in Fannie Mae and Freddie Mac stock. While many community banks steered clear of these troubled asset classes, we believe that most financial institutions may experience lower levels of net interest income and net income throughout calendar year 2009. West View Savings Bank has elected to participate in the FDIC's Transaction Account Guarantee Program. This program provides unlimited FDIC deposit insurance on bank checking accounts. Neither West View Savings Bank, or WVS Financial Corp., have applied for U.S. Government funding under the Troubled Asset Relief Program. During the first six months of fiscal 2009, we were able to purchase approximately 95,000 shares of our common stock. While this resulted in a modest decline in equity, book value per share increased to $14.86 from $14.44. Return on average assets of 0.84%, and return on average equity at 11.17%, remained strong despite the economic and market turbulence. 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 2009, West View Savings Bank began its second century 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-- # # # Page 5 of 7 WVS FINANCIAL CORP. AND SUBSIDIARY SELECTED CONSOLIDATED FINANCIAL DATA (Dollars in thousands except per share data) December 31, June 30, 2008 2008 (Unaudited) (Unaudited) --------- --------- Total assets $ 444,752 $ 423,109 Investment securities held-to-maturity 135,649 120,559 Investment securities available-for-sale 489 7,978 Mortgage-backed securities held-to- maturity 209,427 213,690 Mortgage-backed securities available-for- sale 2,138 2,215 Net loans receivable 57,731 56,477 Deposits 147,289 150,142 FHLB advances: long-term 135,579 135,579 FHLB advances: short-term 0 0 FRB short-term borrowings 126,785 80,600 Other short-term borrowings 0 20,000 Equity 31,673 32,148 Book value per share 14.86 14.44 Return on average assets 0.84% 0.89% Return on average equity 11.17% 12.03% Page 6 of 7 WVS FINANCIAL CORP. AND SUBSIDIARY SELECTED CONSOLIDATED OPERATING DATA (In thousands except per share data)
Three Months Ended Six Months Ended December 31, December 31, (Unaudited) (Unaudited) ------------------------- ------------------------- 2008 2007 2008 2007 ----------- ----------- ----------- ----------- Interest income $ 4,997 $ 6,497 $ 9,881 $ 13,035 Interest expense 2,651 4,165 5,686 8,399 ----------- ----------- ----------- ----------- Net interest income 2,346 2,332 4,195 4,636 Provision (recovery) for loan losses 27 11 21 (6) ----------- ----------- ----------- ----------- Net interest income after provision (recovery) for loan losses 2,319 2,321 4,174 4,642 Non-interest income 156 145 323 301 Non-interest expense 962 955 1,936 1,896 ----------- ----------- ----------- ----------- Income before income tax expense 1,513 1,511 2,561 3,047 Income taxes 501 463 793 975 ----------- ----------- ----------- ----------- NET INCOME $ 1,012 $ 1,048 $ 1,768 $ 2,072 =========== =========== =========== =========== EARNINGS PER SHARE: Basic $ 0.47 $ 0.46 $ 0.81 $ 0.91 Diluted $ 0.47 $ 0.46 $ 0.81 $ 0.91 WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 2,159,271 2,261,544 2,175,524 2,272,527 Diluted 2,159,587 2,261,783 2,175,686 2,273,084
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