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

July 25, 2019

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

(Registrant’s 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))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		WVFC		NASDAQ

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.  ☐

 

 

 

 

Page 1 of 3

Item 2.02

Results of Operations and Financial Condition

On July 25, 2019, WVS Financial Corp. issued a press release to report net income and earnings per share for the three and twelve months ended June 30, 2019. 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 July 25, 2019.

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.

 

Page 2 of 3

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: July 25, 2019				By:		/s/ David J. Bursic
						President and Chief Executive Officer

 

Page 3 of 3

Exhibit 99

 

Release Date:		Further Information:
IMMEDIATE RELEASE		David J. Bursic
July 25, 2019		President and CEO
		Phone: 412/364-1913

WVS FINANCIAL CORP. ANNOUNCES INCREASED NET INCOME AND EARNINGS PER

SHARE FOR THE FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 2019

Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $615 thousand or $0.35 per diluted share, for the three months ended June 30, 2019 as compared to $593 thousand or $0.31 per diluted share for the same period in 2018. The $22 thousand increase in net income during the three months ended June 30, 2019 was primarily attributable to a $104 thousand increase in net interest income and a $10 thousand decrease in income tax expense, partially offset by an $8 thousand increase in the provision for loan losses and an $81 thousand increase in non-interest expense. The increase in net interest income during the three months ended June 30, 2019 was attributable to a $425 thousand increase in interest income, which was partially offset by a $321 thousand increase in interest expense. The increase in interest income was primarily attributable to higher average yields on the Company’s investment and mortgage-backed securities, as well as increases in both average loan yields and average loan balances, when compared to the same period in 2018. 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 time deposits, partially offset by lower average balances of FHLB borrowings outstanding during the three months ended June 30, 2019, when compared to the same period in 2018. The increase in non-interest expense was primarily the result of higher compensation related expenses, partially offset by lower expenses associated with occupancy, equipment and ATM operations. The increase in the provision for loan losses was primarily attributable to higher levels of single-family loans during the quarter ended June 30, 2019 and an increase in the Company’s Allowance for Loan Losses (“ALLL”) reserve factor for the single family-permanent loan segment, when compared to the same period in 2018. The $13 thousand decrease in income tax expense for the quarter ended June 30, 2019 was primarily attributable to lower final taxable income on the Company’s federal income tax return when compared to the same period of 2018.

Net income for the twelve months ended June 30, 2019 totaled $2.8 million or $1.57 per diluted share, as compared to $2.1 million or $1.16 per diluted share for the same period in 2018. The $670 thousand increase in net income during the fiscal year ended June 30, 2019 was primarily attributable to a $636 thousand increase in net interest income and a $196 thousand decrease in income tax expense when compared to the same period of 2018. These changes were partially offset by a $30 thousand increase in the provision for loan losses, a $55 thousand decrease in non-interest income and an increase of $77 thousand in non-interest expense. The increase in net interest income during the twelve months ended June 30, 2019 was attributable to a $2.4 million increase in interest income, which was partially offset by a $1.7 million increase in interest expense. The increase in interest income was primarily attributable to higher average yields on the Company’s investment and mortgage-backed securities, FHLB stock and loan portfolio when compared to the same period in 2018. The increase in interest expense was primarily due to higher average market rates paid on FHLB borrowings and time deposits, and higher average balances of time deposits, which were partially offset by lower average balances of FHLB advances outstanding, during the fiscal year ended June 30, 2019, when compared to the same period in 2018. The increase in non-interest expense was primarily attributable to higher compensation and data processing expenses which were partially offset by lower

occupancy and equipment, and FDIC insurance premium expenses during fiscal 2019 when compared to the same period in 2018. The increase in the provision for loan losses was primarily attributable to higher levels of single-family loans and an increase in the Company’s ALLL reserve factor for the single-family permanent loan segment, during the twelve months ended June 30, 2019 when compared to the same period of 2018. The decrease in non-interest income was primarily attributable to an increase in other-than-temporary impairment losses on the Company’s legacy private-label mortgage-backed securities portfolio, and to decreases in service charges on deposits and ATM fee income. The decrease in income tax expense for the twelve months ended June 30, 2019 when compared to the same period in 2018 was primarily attributable to the absence of the additional $133 thousand federal income tax expense due to the write down of the Company’s net deferred tax assets associated with the Tax Cuts and Jobs Act of 2017 which was recorded in December 2017, partially offset by higher taxable income and 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 insured savings bank, which conducts business from six offices located in the North Hills suburbs of Pittsburgh, Pennsylvania. The Bank wishes to thank our customers and host communities for allowing us to be their full service bank.

—TABLES ATTACHED—

# # #

WVS FINANCIAL CORP. AND SUBSIDIARY

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands except per share data)

 

		June 30, 2019 (Unaudited)				June 30, 2018 (Unaudited)
Total assets		$	355,818			$	352,288
Cash and Cash Equivalents			4,379				2,441
Certificates of Deposits			1,843				350
Investment securities available-for-sale			132,780				128,811
Investment securities held-to-maturity			3,995				6,181
Mortgage-backed securities held-to-maturity			108,331				115,857
Net loans receivable			90,588				84,675
Deposits			146,435				145,023
FHLB advances: long-term fixed-rate			15,000				—
FHLB advances: long-term variable-rate			85,000				—
FHLB advances: short-term			70,828				171,403
Equity			36,050				34,017
Book value per share – Common Equity			18.55				17.27
Book value per share – Tier I Equity			18.54				17.37
Annualized Return on average assets			0.80	%			0.60	%
Annualized Return on average equity			8.14	%			6.31	%
Tier I leverage ratio			10.20	%			9.65	%

WVS FINANCIAL CORP. AND SUBSIDIARY

SELECTED CONSOLIDATED OPERATING DATA

(In thousands except per share data)

 

		Three Months Ended								Twelve Months Ended
		June 30,								June 30,
		(Unaudited)								(Unaudited)
		2019				2018				2019				2018
Interest income		$	3,121			$	2,696			$	12,054			$	9,670
Interest expense			1,306				985				4,872				3,124
Net interest income			1,815				1,711				7,182				6,546
Provision for loan losses			37				29				80				50
Net interest income after provision for loan losses			1,778				1,682				7,102				6,496
Non-interest income			108				111				415				470
Non-interest expense			1,038				957				3,790				3,713
Income before income tax expense			848				836				3,727				3,253
Income taxes			233				243				932				1,128
NET INCOME		$	615			$	593			$	2,795			$	2,125
EARNINGS PER SHARE:
Basic		$	0.35			$	0.31			$	1.57			$	1.16
Diluted		$	0.35			$	0.31			$	1.57			$	1.16
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			1,774,553				1,827,870				1,780,527				1,826,893
Diluted			1,774,553				1,827,870				1,780,581				1,827,260