PVF Capital Corp. Announces Fiscal First Quarter Results
October 26 2010 - 3:34PM
- Strong mortgage banking activities resulting in
mortgage origination income of $3.7 million.
- Lower rate environment and increasing prepayment speeds
result in impairment of $1.2 million in mortgage servicing
rights.
- Continued improvement in net interest margin to
2.62%.
- Credit costs remain elevated with provision for loan
losses of $2.8 million and loss on real estate owned of
$412,000.
- Continued progress towards achieving regulatory
targeted adversely classified assets ratio.
- Improving noninterest expense levels.
- Bank capital ratios remain strong.
PVF Capital Corp. (Nasdaq:PVFC), the parent company of Park View
Federal Savings Bank, announced a net loss of $618,000 or $0.02
basic and diluted loss per share for the quarter ended September
30, 2010.
During the quarter, the Company experienced a significant
increase in mortgage banking activities as a result of the elevated
levels of refinancing activities from the drop in mortgage interest
rates. The increased mortgage volume resulted in mortgage
origination income of $3.7 million, an increase of $1.2 million
over the linked quarter of June 30, 2010, and an increase of $2.8
million over the same period of the prior year. The elevated levels
of refinance activity also resulted in an increase in the
amortization of the mortgage servicing asset, resulting in a net
servicing loss of $150,000 for the period, compared with net
servicing revenue of $122,000 and $143,000 for the linked quarter
and prior year quarter, respectively. The accelerated prepayment
speeds also resulted in a decline in the estimated fair value of
certain tranches of the Company's mortgage servicing rights
resulting in the establishment of a valuation allowance of $1.2
million. However, the estimated value of the Company's entire
mortgage servicing rights portfolio continues to exceed its
carrying value.
Robert J. King, Jr., President and Chief Executive Officer
commented, "The continued low interest rate environment throughout
the quarter has generated a strong volume of mortgage refinancing
activity and a corresponding high level of mortgage banking
activity and income. We are encouraged with these results despite
the offsetting net servicing loss and the establishment of the
valuation allowance."
During the current quarter, the Company continued its strategy
to reduce the risk profile of its balance sheet to move towards
achieving full compliance with the Orders entered into with its
primary regulator, the Office of Thrift Supervision, and to
reposition the Company to return to its core profitability. As part
of its strategy to reduce its risk profile, the Company continued
to shrink its balance sheet and loan portfolio. During the current
period, total assets declined $22.8 million, or 2.7%, while the
loan portfolio shrunk $14.9 million, or 2.4%. Total nonperforming
assets remained stable with the linked quarter at $78.0 million at
September 30, 2010. The Company continued to reduce its level of
classified assets to core capital plus general valuation allowance
ratio to 86.5% at September 30, 2010 compared with 135.1% at
September 30, 2009. The Company also reduced its level of
classified assets plus special mention assets to core capital ratio
plus general valuation allowance to 109.6% compared with 168.4% a
year ago.
Also, as part of improving its risk profile, the Company
continued to increase its liquidity position maintaining a very
high level of cash and cash equivalents, which totaled $130.7
million at the end of the most recent quarter.
Mr. King added, "We are pleased with the underlying core
performance of the organization as we continue to manage the
balance sheet to reduce the Company's overall risk profile,
generate revenue, reduce expenses and improve net interest margin.
We are seeing a decline in the level of nonperforming and adversely
classified assets, although not as quickly as we would like."
Despite a smaller balance sheet, net interest income for the
period increased $7,000 and $799,000 as compared with the periods
ending June 30, 2010 and September 30, 2009, respectively. The net
interest margin was 2.62% for the period and was higher than the
2.55% reported for the linked period and 2.14% for the year ago
period.
The provision for loan losses totaled $2.8 million reflecting
the continued difficult economic operating environment. The
provision was $3.9 million the previous period and $1.8 million the
prior year period.
The allowance for loan losses increased to $32.6 million or 5.4%
of total loans outstanding. This compares to $31.5 million and
5.1%, respectively, for the prior period and $31.8 million and
4.7%, respectively, for the prior year period.
Park View Federal is a wholly-owned subsidiary of PVF Capital
Corp. and operates 17 full-service offices located throughout the
Greater Cleveland area. For additional information, visit our web
site at www.myparkview.com.
This press release contains statements that are forward-looking,
as that term is defined by the Private Securities Litigation Act of
1995 or the Securities and Exchange Commission in its rules,
regulations and releases. The Company intends that such
forward-looking statements be subject to the safe harbors created
thereby. All forward-looking statements are based on current
expectation regarding important risk factors including, but not
limited to, real estate values and the impact of interest rates on
financing. Accordingly, actual results may differ from those
expressed in the forward-looking statements, and the making of such
statements should not be regarded as a representation by the
Company or any other person that results expressed therein will be
achieved.
PVF Capital Corp.'s common shares trade on the NASDAQ Capital
Market under the symbol PVFC.
PVF CAPITAL CORP. |
|
|
|
|
30000 Aurora Road |
|
|
Solon, OH 44139 |
|
|
440-248-7171 |
|
|
|
SUMMARY OF FINANCIAL
HIGHLIGHTS |
|
|
|
CONSOLIDATED STATEMENTS
OF FINANCIAL CONDITION |
(Unaudited) |
|
|
|
(Dollars in thousands) |
September 30, |
June 30, |
|
2010 |
2010 |
ASSETS |
|
|
Cash and cash equivalents |
$130,706 |
$130,043 |
Securities |
15,112 |
20,149 |
Loans receivable |
571,409 |
587,406 |
Loans receivable held for sale |
15,151 |
8,718 |
Mortgage-backed securities |
41,772 |
47,146 |
Other assets |
62,597 |
66,123 |
|
|
|
Total Assets |
$836,747 |
$859,585 |
|
|
|
LIABILITIES |
|
|
Deposits |
$644,635 |
$667,546 |
Borrowed money |
86,233 |
86,259 |
Other liabilities |
23,646 |
22,537 |
|
|
|
Total Liabilities |
754,514 |
776,342 |
|
|
|
Total Stockholders' Equity |
82,233 |
83,243 |
|
|
|
Total Liabilities and Stockholders'
Equity |
$836,747 |
$859,585 |
|
|
|
|
|
|
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(Unaudited) |
|
|
|
|
Three Months
Ended |
(Dollars in thousands except per share
data) |
September
30, |
|
2010 |
2010 |
|
|
|
Loans |
$8,132 |
$9,157 |
Mortgage-backed securities |
461 |
663 |
Investments |
260 |
177 |
Interest income |
8,853 |
9,997 |
|
|
|
Deposits |
2,666 |
4,359 |
Borrowings |
911 |
1,162 |
Interest expense |
3,577 |
5,521 |
|
|
|
Net interest income |
5,276 |
4,476 |
|
|
|
Provision for loan losses |
2,800 |
1,760 |
|
|
|
Net interest income after provision for loan
losses |
2,476 |
2,716 |
|
|
|
Mortgage-banking activities |
2,414 |
1,055 |
Impairment of securities |
0 |
0 |
Gain on cancellation of subordinated
debt |
0 |
8,561 |
Gain (loss) on real estate owned |
(412) |
(90) |
Gain on the sale of securities |
0 |
0 |
Increase in cash surrender value of bank
owned life insurance |
75 |
20 |
Other, net |
411 |
318 |
Total noninterest income |
2,488 |
9,864 |
|
|
|
Compensation and benefits |
2,436 |
2,242 |
Office occupancy and equipment |
707 |
678 |
Federal deposit insurance premium |
606 |
566 |
Outside services |
551 |
852 |
Real estate owned expense |
737 |
782 |
Other |
891 |
1,116 |
Total noninterest expense |
5,928 |
6,236 |
|
|
|
Income (loss) before federal income tax
provision |
(964) |
6,344 |
|
|
|
Federal income tax provision
(benefit) |
(346) |
2,144 |
|
|
|
Net income (loss) |
($618) |
$4,200 |
|
|
|
Basic earnings (loss) per
share |
($0.02) |
$0.54 |
|
|
|
Diluted earnings (loss) per
share |
($0.02) |
$0.54 |
|
FINANCIAL
HIGHLIGHTS |
|
|
|
|
|
|
|
At or for the three
months ended |
(dollars in thousands except per
share data) |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
Balance Sheet Data: |
2010 |
2010 |
2010 |
2009 |
2009 |
Total assets |
$ 836,747 |
$ 859,585 |
$ 889,184 |
$ 869,297 |
$ 887,081 |
Loans receivable |
604,038 |
618,925 |
636,243 |
656,351 |
685,048 |
Allowance for loan losses |
32,629 |
31,519 |
30,272 |
29,913 |
31,824 |
Loans receivable held for sale, net |
15,151 |
8,718 |
9,017 |
7,181 |
6,428 |
Mortgage-backed securities available for
sale |
41,772 |
47,146 |
52,217 |
57,433 |
60,630 |
Cash and cash equivalents |
130,706 |
130,043 |
137,369 |
42,662 |
29,004 |
Securities held to maturity |
0 |
0 |
5,000 |
55,000 |
57,000 |
Securities available for sale |
15,112 |
20,149 |
9,978 |
87 |
137 |
Deposits |
644,635 |
667,546 |
689,562 |
682,891 |
696,931 |
Borrowings |
86,233 |
86,259 |
86,286 |
96,313 |
106,339 |
Stockholders' equity |
82,233 |
83,243 |
85,304 |
53,578 |
54,894 |
Nonperforming loans |
71,100 |
69,090 |
69,983 |
73,343 |
75,249 |
Other nonperforming assets |
6,891 |
8,174 |
10,991 |
12,090 |
11,569 |
Tangible common equity ratio |
9.83% |
9.68% |
9.59% |
6.16% |
6.19% |
Book value per share |
$3.21 |
$3.25 |
$3.36 |
$6.71 |
$6.88 |
Common shares outstanding at period end |
25,642,218 |
25,642,218 |
25,402,218 |
7,979,120 |
7,979,120 |
|
|
|
|
|
|
Operating Data: |
|
|
|
|
|
Loans |
$8,132 |
$8,325 |
$8,571 |
$9,139 |
$9,157 |
Mortgage-backed securities |
461 |
575 |
606 |
694 |
663 |
Investments |
260 |
277 |
203 |
180 |
177 |
Interest income |
8,853 |
9,177 |
9,380 |
10,013 |
9,997 |
|
|
|
|
|
|
Deposits |
2,666 |
3,005 |
3,226 |
3,764 |
4,359 |
Borrowings |
911 |
902 |
1,022 |
1,107 |
1,162 |
Interest expense |
3,577 |
3,907 |
4,248 |
4,871 |
5,521 |
|
|
|
|
|
|
Net interest income |
5,276 |
5,270 |
5,132 |
5,142 |
4,476 |
|
|
|
|
|
|
Provision for loan losses |
2,800 |
3,918 |
7,000 |
2,250 |
1,760 |
|
|
|
|
|
|
Net interest income after provision for loan
losses |
2,476 |
1,352 |
(1,868) |
2,892 |
2,716 |
|
|
|
|
|
|
Mortgage-banking activities |
2,414 |
1,327 |
770 |
1,451 |
1,055 |
Gain on cancellation of subordinated
debt |
0 |
0 |
9,066 |
0 |
8,561 |
Gain (loss) on real estate owned |
(412) |
(1,305) |
(239) |
(571) |
(90) |
Gain on the sale of securities |
0 |
0 |
24 |
0 |
0 |
Increase in cash surrender value of bank
owned life insurance |
75 |
76 |
75 |
78 |
20 |
Other, net |
411 |
290 |
259 |
371 |
318 |
Total noninterest income |
2,488 |
388 |
9,955 |
1,329 |
9,864 |
|
|
|
|
|
|
Compensation and benefits |
2,436 |
2,430 |
2,317 |
2,372 |
2,242 |
Office occupancy and equipment |
707 |
607 |
645 |
647 |
678 |
Federal deposit insurance premium |
606 |
781 |
584 |
738 |
566 |
Outside services |
551 |
759 |
655 |
508 |
907 |
Real estate owned expense |
737 |
691 |
949 |
666 |
782 |
Other |
891 |
801 |
974 |
1,096 |
1,061 |
Total noninterest expense |
5,928 |
6,069 |
6,124 |
6,027 |
6,236 |
|
|
|
|
|
|
Income (loss) before federal income tax
provision |
(964) |
(4,329) |
1,963 |
(1,806) |
6,344 |
|
|
|
|
|
|
Federal income tax provision
(benefit) |
(346) |
(1,582) |
694 |
(525) |
2,144 |
|
|
|
|
|
|
Net income (loss) |
($618) |
($2,747) |
$1,269 |
($1,281) |
$4,200 |
|
|
|
|
|
|
Basic earnings (loss) per
share |
($0.02) |
($0.11) |
$0.14 |
($0.16) |
$0.54 |
|
|
|
|
|
|
Diluted earnings (loss) per
share |
($0.02) |
($0.11) |
$0.13 |
($0.16) |
$0.54 |
|
|
|
|
|
|
(1) Includes $9.1 million
gain related to exchange of PVF Capital Trust II trust preferred
securities. |
|
|
|
|
(2) Includes $8.6 million
gain related to exchange of PVF Capital Trust I trust preferred
securities. |
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
Return on average assets |
(0.29) |
(1.24) |
0.58 |
(0.58) |
1.87 |
Return on average equity |
(2.99) |
(12.96) |
7.27 |
(9.45) |
32.18 |
Net interest margin |
2.62 |
2.55 |
2.55 |
2.49 |
2.14 |
Interest rate spread |
2.48 |
2.44 |
2.48 |
2.38 |
2.26 |
Efficiency ratio |
63.33 |
87.17 |
97.83 |
85.59 |
106.25 |
Stockholders' equity to total assets (all
tangible) |
9.83 |
9.68 |
9.59 |
6.16 |
6.19 |
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
Nonperforming assets to total assets |
9.32 |
8.99 |
9.11 |
9.83 |
9.79 |
Nonperforming loans to total loans |
11.77 |
11.16 |
11.00 |
11.17 |
10.98 |
Allowance for loan losses to total loans |
5.40 |
5.09 |
4.76 |
4.56 |
4.65 |
Allowance for loan losses to nonperforming
loans |
45.89 |
45.62 |
43.26 |
40.79 |
42.29 |
Net charge-offs to average loans,
annualized |
1.08 |
1.68 |
4.05 |
2.54 |
0.84 |
|
|
|
|
|
|
Park View Federal Regulatory Capital
Ratios: |
|
|
|
|
|
Ratio of tangible capital to adjusted total
assets |
8.70 |
8.63 |
8.23 |
7.15 |
6.70 |
Ratio of tier one (core) capital to
adjusted total assets |
8.70 |
8.63 |
8.23 |
7.15 |
6.70 |
Ratio of tier one risk-based capital to
risk-weighted assets |
11.65 |
11.56 |
10.93 |
9.48 |
8.77 |
Ratio of total risk-based capital to
risk-weighted assets |
12.92 |
12.83 |
12.19 |
10.74 |
10.03 |
Adversely classified assets to core capital
plus general valuation allowance |
86.50 |
88.60 |
98.60 |
119.90 |
135.10 |
Adversely classified assets plus special
mention assets to core capital plus general valuation
allowance |
109.60 |
117.30 |
104.20 |
130.50 |
168.40 |
CONTACT: PVF Capital Corp.
James H. Nicholson, Chief Financial Officer
440-248-7171
Pvf Capital (NASDAQ:PVFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pvf Capital (NASDAQ:PVFC)
Historical Stock Chart
From Jul 2023 to Jul 2024