PVF Capital Corp. (PVFC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Pvf Capital Corp. has a market cap of $18.2 million; its shares were traded at around $2.2801 with and P/S ratio of 0.3. PVFC is in the portfolios of John Buckingham of Al Frank Asset Management, Inc..
The holding company, PVF Capital Corp., has certain ongoing cash needs primarily related to trust preferred securities and the payment of dividends to stockholders. During the December 2008 quarter, the Company elected to defer interest payments on the trust preferred securities and suspend the payment of cash dividends to stockholders. As previously stated, the Company completed its exchange agreements for the cancellation of its trust preferred securities obligations. The completion of both transactions will result in an annual reduction in cash paid for interest expense of approximately $1.1 million. Cash dividends to stockholders totaled $97,173 for the nine months ended March 31, 2010. Cash at the holding company totaled $14,013,698 at March 31, 2010.
The Office of Thrift Supervision has issued Cease and Desist Orders against the Company and the Bank. The Cease and Desist Orders contain a number of significant directives, including higher capital requirements, requirements to reduce the level of our classified and criticized assets, growth and operating restrictions, restrictions on brokered deposits, and restrictions on dividend payments. These restrictions may impede our ability to operate our own business and to effectively compete in our markets. If we fail to comply with the terms and conditions of the Cease and Desist Orders, the Office of Thrift Supervision could take additional enforcement action against us, including the imposition of further operating restrictions, directing us to seek a merger partner or to liquidate Park View Federal. On March 26, 2010 the Company completed a rights offering and an offering to a standby investor. Stockholders exercised subscription rights to purchase all 14,706,247 shares offered at a subscription price of $1.75 per share. Additionally, the standby investor purchased 2,436,610 shares at the subscription price of $1.75 per share. In total, the Company raised gross proceeds of $30.0 million. The Company invested $15.0 million of the offering proceeds into the Bank. The resulting regulatory capital ratios of the Bank now exceed the capital requirements of the Cease and Desist Order. As such, we have complied with all requirements of the Cease and Desist Orders that are required of us to date and we will continue to work to comply with all such requirements in the future. We have also submitted to the
Proposal II Approval of the redemption of Trust Preferred Securities. The redemption of $10.0 million aggregate liquidation amount of trust preferred securities in exchange for $400,000 in cash, $600,000 of common stock and warrants to acquire common stock. The voting results were as follows:
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Pvf Capital Corp. has a market cap of $18.2 million; its shares were traded at around $2.2801 with and P/S ratio of 0.3. PVFC is in the portfolios of John Buckingham of Al Frank Asset Management, Inc..
Highlight of Business Operations:
During the current period the Company enhanced its liquidity position by using payments received on loans and mortgage-backed securities to redeem brokered certificates of deposit and increase cash and cash equivalents. Additionally, the Company completed a rights offering and an offering to a standby investor. Stockholders exercised subscription rights to purchase all 14,706,247 shares offered at a subscription price of $1.75 per share. Additionally, the standby investor purchased 2,436,610 shares at the subscription price of $1.75 per share. In total, the Company raised proceeds, net of issuance costs, of $27,964,000.The holding company, PVF Capital Corp., has certain ongoing cash needs primarily related to trust preferred securities and the payment of dividends to stockholders. During the December 2008 quarter, the Company elected to defer interest payments on the trust preferred securities and suspend the payment of cash dividends to stockholders. As previously stated, the Company completed its exchange agreements for the cancellation of its trust preferred securities obligations. The completion of both transactions will result in an annual reduction in cash paid for interest expense of approximately $1.1 million. Cash dividends to stockholders totaled $97,173 for the nine months ended March 31, 2010. Cash at the holding company totaled $14,013,698 at March 31, 2010.
The Office of Thrift Supervision has issued Cease and Desist Orders against the Company and the Bank. The Cease and Desist Orders contain a number of significant directives, including higher capital requirements, requirements to reduce the level of our classified and criticized assets, growth and operating restrictions, restrictions on brokered deposits, and restrictions on dividend payments. These restrictions may impede our ability to operate our own business and to effectively compete in our markets. If we fail to comply with the terms and conditions of the Cease and Desist Orders, the Office of Thrift Supervision could take additional enforcement action against us, including the imposition of further operating restrictions, directing us to seek a merger partner or to liquidate Park View Federal. On March 26, 2010 the Company completed a rights offering and an offering to a standby investor. Stockholders exercised subscription rights to purchase all 14,706,247 shares offered at a subscription price of $1.75 per share. Additionally, the standby investor purchased 2,436,610 shares at the subscription price of $1.75 per share. In total, the Company raised gross proceeds of $30.0 million. The Company invested $15.0 million of the offering proceeds into the Bank. The resulting regulatory capital ratios of the Bank now exceed the capital requirements of the Cease and Desist Order. As such, we have complied with all requirements of the Cease and Desist Orders that are required of us to date and we will continue to work to comply with all such requirements in the future. We have also submitted to the
Proposal II Approval of the redemption of Trust Preferred Securities. The redemption of $10.0 million aggregate liquidation amount of trust preferred securities in exchange for $400,000 in cash, $600,000 of common stock and warrants to acquire common stock. The voting results were as follows:
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