UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
April 27, 2018
Date of Report (Date of earliest event reported)
WVS Financial Corp.
(Exact name of registrant as specified in its charter)
Pennsylvania | 0-22444 | 25-1710500 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
9001 Perry Highway, Pittsburgh, Pennsylvania | 15237 | |||
(Address of principal executive offices) | (Zip Code) |
(412) 364-1913
(Registrants telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR § 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition |
On April 27, 2018, WVS Financial Corp. issued a press release to report net income and earnings per share for the three and nine months ended March 31, 2018. A copy of the press release is furnished as Exhibit 99 to this Form 8-K.
Item 9.01 | Financial Statements and Exhibits |
(a) | Not applicable |
(b) | Not applicable |
(c) | Not applicable |
(d) | Exhibits |
Exhibit 99 Press Release, dated April 27, 2018.
This information, including the press release filed as Exhibit 99, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
WVS FINANCIAL CORP. | ||||||
Dated: April 27, 2018 | By: | /s/ David J. Bursic | ||||
President and Chief Executive Officer |
Exhibit 99.1
Release Date: | Further Information: | |
IMMEDIATE RELEASE | David J. Bursic | |
April 27, 2018 | President and CEO | |
Phone: 412/364-1913 |
WVS FINANCIAL CORP. ANNOUNCES INCREASED NET INCOME AND EARNINGS PER
SHARE FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2018
Pittsburgh, PA WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $634 thousand or $0.35 per diluted share, for the three months ended March 31, 2018 as compared to $426 thousand or $0.23 per diluted share for the same period in 2017. The $208 thousand increase in net income during the three months ended March 31, 2018 was primarily attributable to a $194 thousand increase in net interest income, a $5 thousand decrease in provisions for loan losses and a $30 thousand decrease in income tax expense. The increase in net interest income during the three months ended March 31, 2018 was attributable to a $524 thousand increase in interest income, which was partially offset by a $330 thousand increase in interest expense. The increase in interest income was primarily attributable to higher average yields on the Companys investment and mortgage-backed securities as well as an increase in average loan balances when compared to the same period in 2017. The increase in interest expense was primarily attributable to higher rates paid on Federal Home Loan Bank (FHLB) borrowings and time deposits and higher average balances of FHLB borrowings outstanding during the three months ended March 31, 2018, when compared to the same period in 2017. The decrease in the provision for loan losses was primarily attributable to lower originations of single-family loans during the quarter ended March 31, 2018, partially offset by an increase in the Companys ALLL reserve factor for the single family-permanent loan segment, when compared to the same period in 2017. The decrease in income tax expense for the quarter ended March 31, 2018 when compared to the same period of 2017 reflects the reduced federal corporate tax rate offset by higher levels of taxable income.
Net income for the nine months ended March 31, 2018 totaled $1.5 million or $0.84 per diluted share, as compared to $1.2 million or $0.65 per diluted share for the same period in 2017. The $314 thousand increase in net income during the nine months ended March 31, 2018 was primarily attributable to a $524 thousand increase in net interest income and a $28 thousand decrease in provisions for loan losses, which were partially offset by an increase of $239 thousand in income tax expense. The increase in net interest income during the nine months ended March 31, 2018 was attributable to a $1.4 million increase in interest income, which was partially offset by an $881 thousand increase in interest expense. The increase in interest income was primarily attributable to higher average yields on the Companys investment and mortgage-backed securities as well as an increase in average loan balances when compared to the same period in 2017. Also contributing to the increase in interest income for the nine months ended 2018 were higher average balances and yields attributable to dividends received on FHLB stock. The increase in interest expense was primarily attributable to higher average market rates paid on FHLB borrowings and time deposits which were partially offset by lower average balances of FHLB long-term advances outstanding,
during the nine months ended March 31, 2018, when compared to the same period in 2017. The decrease in the provision for loan losses was primarily attributable to lower originations of single-family loans, which was partially offset by an increase in the Companys ALLL reserve factor for the single family-permanent loan segment, during the nine months ended March 31, 2018 compared to the same period of 2017. The increase in income tax expense for the nine months ended March 31, 2018 when compared to the same period in 2017 was primarily the result of an additional $133 thousand federal income tax expense due to the write down of the Companys net deferred tax assets associated with the Tax Cuts and Jobs Act of 2017 as well as higher taxable income. Partially offsetting the $133 write down and the higher taxable income was the reduced corporate federal tax rate effective January 1, 2018.
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
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WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands except per share data)
March 31, 2018 (Unaudited) |
June 30, 2017 (Unaudited) |
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Total assets |
$ | 356,441 | $ | 351,609 | ||||
Cash and Cash Equivalents |
6,863 | 2,272 | ||||||
Certificates of Deposits |
598 | 10,380 | ||||||
Investment securities available-for-sale |
128,725 | 108,449 | ||||||
Investment securities held-to-maturity |
6,186 | 8,678 | ||||||
Mortgage-backed securities held-to-maturity |
119,747 | 129,321 | ||||||
Net loans receivable |
80,195 | 77,455 | ||||||
Deposits |
140,605 | 145,289 | ||||||
FHLB advances: long-term, fixed-rate |
| 10,000 | ||||||
FHLB advances: long-term, variable-rate |
| 6,109 | ||||||
FHLB advances: short-term |
179,791 | 155,799 | ||||||
Equity |
34,170 | 33,043 | ||||||
Book value per share Common Equity |
17.02 | 16.45 | ||||||
Book value per share Tier I Equity |
17.14 | 16.54 | ||||||
Annualized Return on average assets |
0.58 | % | 0.48 | % | ||||
Annualized Return on average equity |
6.09 | % | 4.94 | % | ||||
Tier I leverage ratio |
9.78 | % | 9.53 | % |
WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest income |
$ | 2,482 | $ | 1,958 | $ | 6,955 | $ | 5,550 | ||||||||
Interest expense |
818 | 488 | 2,138 | 1,257 | ||||||||||||
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Net interest income |
1,664 | 1,470 | 4,817 | 4,293 | ||||||||||||
Provision for loan losses |
10 | 15 | 22 | 50 | ||||||||||||
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Net interest income after provision for loan losses |
1,654 | 1,455 | 4,795 | 4,243 | ||||||||||||
Non-interest income |
121 | 130 | 360 | 367 | ||||||||||||
Non-interest expense |
908 | 896 | 2,738 | 2,746 | ||||||||||||
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Income before income tax expense |
867 | 689 | 2,417 | 1,864 | ||||||||||||
Income taxes |
233 | 263 | 884 | 645 | ||||||||||||
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NET INCOME |
$ | 634 | $ | 426 | $ | 1,533 | $ | 1,219 | ||||||||
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EARNINGS PER SHARE: |
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Basic |
$ | 0.35 | $ | 0.23 | $ | 0.84 | $ | 0.65 | ||||||||
Diluted |
$ | 0.35 | $ | 0.23 | $ | 0.84 | $ | 0.65 | ||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: |
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Basic |
1,828,283 | 1,882,593 | 1,826,568 | 1,879,927 | ||||||||||||
Diluted |
1,829,750 | 1,882,593 | 1,827,057 | 1,879,927 |