PVF Capital Corp. Announces Quarterly Operating Results

• Press Release
• Source: PVF Capital Corp.
• On 8:00 am EDT, Friday September 25, 2009

SOLON, Ohio, Sept. 25, 2009 (GLOBE NEWSWIRE) -- PVF Capital Corp. (Nasdaq:PVFC - News), the parent company of Park View Federal Savings Bank, announced a loss of $7,912,000, or $1.02 basic and diluted earnings per share for the quarter ended June 30, 2009 as compared to a loss of $2,745,000, or $0.35 basic and diluted earnings per share for the prior year comparable period. For the twelve-month period ended June 30, 2009, the Company reported a loss of $20,116,000, or $2.59 basic and diluted earnings per share, as compared to a loss of $1,101,000, or $0.14 basic and diluted earnings per share, for the prior year period.

Related Quotes

Symbol	Price	Change
PVFC	1.95	+0.05

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The decline in earnings for the current three- and twelve-month periods was primarily attributable to the provision for loan losses recorded in order to reflect current economic conditions. During the past two quarterly periods, the Company performed a thorough comprehensive review of its loan portfolio. This review involved analyzing all large borrowing relationships, delinquency trends, and loan collateral valuation in order to identify impaired loans, as well as deteriorating loans and loan relationships. As a result of this review detailed action plans were developed to either return the loan to performing or dispose of the loan and end the borrowing relationship. This review resulted in the Bank establishing a provision for loan losses of $11.2 million during the quarter, bringing the total allowance for loan losses to $31.5 million for the year ended June 30, 2009.

The decrease in net interest income resulted from increases to nonperforming loans as well as interest charged off during the periods. Non-interest income for the current three- and twelve-month periods was impacted positively by increases in mortgage-banking activity resulting from high refinance activity and gains posted on the sale of loans. This increase of $3.3 million and $6.4 million for the three- and twelve-month periods ended June 30, 2009 resulted from increased lending activity attributable to historically low interest rates. In addition, gains were recorded on the sale of securities in the current twelve-month period.

These gains were negatively impacted in the current twelve-month period by the impairment of the FHLMC and FNMA preferred stock totaling $1.8 million. In addition, the Company experienced losses and expenses resulting from the acquisition, maintenance, and disposal of real estate of $3.2 million and $5.7 million for the three- and twelve-month periods ended June 30, 2009.

The increase in non-interest expense for the three- and twelve-month periods was primarily the result of increases in the cost of FDIC insurance due to higher assessment rates in the three- and twelve-month periods of $468,000 and $1,033,700, respectively, as well as a special one-time assessment charged on deposits in the current three-month period of $430,500. Lastly, outside services increased by $676,400 and $1,073,800, respectively, in the current three- and twelve-month periods primarily as the result of fees paid to consultants.

As of June 30, 2009, PVF Capital Corp. reported assets of $901.6 million, an increase of $34.2 million, or 3.9%, from the prior fiscal year ended June 30, 2008. Total stockholders' equity of PVF Capital Corp. was $49.5 million at June 30, 2009.

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 stock trades on the NASDAQ Capital Market under the symbol PVFC.

PVF Capital Corp.
Edward B. Debevec 
(440) 248-7171