PVF Capital Corp. (PVFC, Financial) filed Quarterly Report for the period ended 2008-12-31.
PVF CAPITAL CORP. is a federal stock savings bank engaged in general banking business. Member FDIC. PVF Capital Corp. has a market cap of $22.07 million; its shares were traded at around $3.11 with and P/S ratio of 0.37. The dividend yield of PVF Capital Corp. stocks is 3.52%.
For the three months ended December 31, 2008, non-interest income increased by $345,600, or 41.4%, from the prior year comparable period. This resulted primarily from a gain on the sale of mortgage-backed securities of $665,900 and an increase in income from mortgage-banking activities of $94,500. As described earlier, during the current period the Company reclassified is mortgage-backed securities portfolio from held-to-maturity to available-for-sale and sold some securities, resulting in realized gains during the period. These increases were partially offset by decreases in earnings on bank-owned life insurance (BOLI) of $270,600, service and other fees of $28,200, an impairment charge of $102,400 from the markdown in value of preferred stock issued by the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal National Mortgage Association (FNMA), and in other, net of $13,600.
Non-interest expense for the three months ended December 31, 2008 increased by $989,900, or 19.7%, from the prior year comparable period. This resulted from an increase in compensation and benefits of $385,700, and an increase in other non-interest expense of $718,400, partially offset by a decrease in office occupancy and equipment of $114,200.
Net interest income for the six months ended December 31, 2008 decreased by $1,365,900, or 12.3%, as compared to the prior year comparable period. This resulted from a decrease of $5,304,300, or 17.8%, in interest income partially offset by a decrease of $3,938,400, or 21.1%, in interest expense. The decrease in net interest income was attributable to a decline of 22 basis points in the interest-rate spread for the six month period ended December 31, 2008 as compared to the prior year comparable period. The decrease in interest-rate spread resulted from margin compression attributable to declining rates on adjustable-rate loans, resulting from a decrease in short-term market rates not reflected in local market deposit pricing, along with an increase in non-performing loans.
For the six months ended December 31, 2008, non-interest income decreased by $1,494,100, or 91.5%, from the prior year comparable period. This resulted primarily from an impairment charge of $1,841,200 from the markdown in value of preferred stock issued by the FHLMC and the FNMA. In addition, earnings on BOLI decreased by $470,900 and service and other fees decreased by $72,800. These decreases were partially offset by a gain on the sale of mortgage-backed securities of $665,900, increases to other, net of $73,100, and income from mortgage banking activities of $151,800.
Non-interest expense for the six months ended December 31, 2008 increased by $639,300, or 6.2%, from the prior year comparable period. This resulted from an increase in other non-interest expense of $869,300, partially offset by a decrease in office occupancy and equipment of $209,300 and compensation and benefits of $20,700. The increase in other non-interest expense was primarily the result of increases in the cost of FDIC insurance due to higher assessment rates charged on deposits, real estate owned expenses attributable to the maintenance of properties acquired through foreclosure, and outside services.
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PVF CAPITAL CORP. is a federal stock savings bank engaged in general banking business. Member FDIC. PVF Capital Corp. has a market cap of $22.07 million; its shares were traded at around $3.11 with and P/S ratio of 0.37. The dividend yield of PVF Capital Corp. stocks is 3.52%.
Highlight of Business Operations:
There are $2.7 million and $3.0 million in performing loans for which we have established specific loan loss reserves as of December 31, 2008 and June 30, 2008. These loans are collateralized by various forms of one-to-four family real estate, non-residential real estate or residential construction. These loans are also subject to the rigorous process for evaluating and accruing for specific loan loss situations described above. Through this process, we established specific loan loss reserves of $164,642 and $93,202 for these loans as of December 31, 2008 and June 30, 2008, respectively.For the three months ended December 31, 2008, non-interest income increased by $345,600, or 41.4%, from the prior year comparable period. This resulted primarily from a gain on the sale of mortgage-backed securities of $665,900 and an increase in income from mortgage-banking activities of $94,500. As described earlier, during the current period the Company reclassified is mortgage-backed securities portfolio from held-to-maturity to available-for-sale and sold some securities, resulting in realized gains during the period. These increases were partially offset by decreases in earnings on bank-owned life insurance (BOLI) of $270,600, service and other fees of $28,200, an impairment charge of $102,400 from the markdown in value of preferred stock issued by the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal National Mortgage Association (FNMA), and in other, net of $13,600.
Non-interest expense for the three months ended December 31, 2008 increased by $989,900, or 19.7%, from the prior year comparable period. This resulted from an increase in compensation and benefits of $385,700, and an increase in other non-interest expense of $718,400, partially offset by a decrease in office occupancy and equipment of $114,200.
Net interest income for the six months ended December 31, 2008 decreased by $1,365,900, or 12.3%, as compared to the prior year comparable period. This resulted from a decrease of $5,304,300, or 17.8%, in interest income partially offset by a decrease of $3,938,400, or 21.1%, in interest expense. The decrease in net interest income was attributable to a decline of 22 basis points in the interest-rate spread for the six month period ended December 31, 2008 as compared to the prior year comparable period. The decrease in interest-rate spread resulted from margin compression attributable to declining rates on adjustable-rate loans, resulting from a decrease in short-term market rates not reflected in local market deposit pricing, along with an increase in non-performing loans.
For the six months ended December 31, 2008, non-interest income decreased by $1,494,100, or 91.5%, from the prior year comparable period. This resulted primarily from an impairment charge of $1,841,200 from the markdown in value of preferred stock issued by the FHLMC and the FNMA. In addition, earnings on BOLI decreased by $470,900 and service and other fees decreased by $72,800. These decreases were partially offset by a gain on the sale of mortgage-backed securities of $665,900, increases to other, net of $73,100, and income from mortgage banking activities of $151,800.
Non-interest expense for the six months ended December 31, 2008 increased by $639,300, or 6.2%, from the prior year comparable period. This resulted from an increase in other non-interest expense of $869,300, partially offset by a decrease in office occupancy and equipment of $209,300 and compensation and benefits of $20,700. The increase in other non-interest expense was primarily the result of increases in the cost of FDIC insurance due to higher assessment rates charged on deposits, real estate owned expenses attributable to the maintenance of properties acquired through foreclosure, and outside services.
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