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

April 30, 2020

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   (Commission   (IRS Employer
jurisdiction of incorporation)   File Number)   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 (§ 230.405 of this chapter) 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.  ☐

 

 

 


Item 2.02

Results of Operations and Financial Condition

On April 30, 2020, WVS Financial Corp. issued a press release to report net income and earnings per share for the three and nine months ended March 31, 2020. 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 April 30, 2020.

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.


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: April 30, 2020     By:   /s/ David J. Bursic
      President and
      Chief Executive Officer
EX-99

 

Release Date:

  

Exhibit 99

Further Information:

IMMEDIATE RELEASE    David J. Bursic
April 30, 2020    President and CEO
   Phone: 412/364-1913

WVS FINANCIAL CORP. ANNOUNCES DECREASED NET INCOME AND EARNINGS PER SHARE

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2020

Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $625 thousand or $0.35 per diluted share, for the three months ended March 31, 2020 as compared to $747 thousand or $0.42 per diluted share for the same period in 2019. The $122 thousand decrease in net income during the three months ended March 31, 2020 was primarily attributable to a $182 thousand decrease in net interest income and a $17 thousand decrease in non-interest income, which were partially offset by a $17 thousand decrease in the provision for loan losses, a $13 thousand decrease in non-interest expense and a $47 thousand decrease in income tax expense. The decrease in net interest income during the three months ended March 31, 2020 was attributable to a $518 thousand decrease in interest income, which was partially offset by a $336 thousand decrease in interest expense. The decrease in interest income was primarily attributable to lower average yields on the Company’s floating rate investment and mortgage-backed securities portfolios, lower dividend yields on the Company’s Federal Home Loan Bank (FHLB) stock, and lower average balances of mortgage-backed securities, which were partially offset by higher average balances of investment securities and loans outstanding, when compared to the same period in 2019. The decline in interest expense was primarily attributable to lower market rates paid on FHLB borrowings and time deposits, which were partially offset by higher average balances of FHLB short-term advances during the three months ended March 31, 2020 compared to the same period in 2019. The $17 thousand decrease in the provision for loan losses during the quarter ended March 31, 2020 was primarily attributable to a $7 thousand credit provision in the three months ended March 31, 2020 as compared to a $10 thousand provision charge in the same period in 2019. The $7 thousand credit provision for the three months ended March 31, 2020 was primarily attributable to lower balances in the 1-4 family residential loan portfolio at March 31, 2020, when compared to December 31, 2019. The decrease in non-interest income for the quarter ended March 31, 2020 was primarily attributable to a $6 thousand increase in impairment charges related to the Company’s private label mortgage-backed securities portfolio, a decrease of $5 thousand in service charges on deposit accounts, and a $4 thousand decrease in miscellaneous categories of non-interest income, when compared to the same period in 2019. The decrease in non-interest expense was primarily due to lower employee post retirement benefit costs and reduced federal deposit insurance expenses due to the FDIC Small Bank Assessment Credits, which were partially offset by higher legal expenses associated with the Company’s Employee Stock Ownership Plan (ESOP) and higher provisions for off balance sheet reserves on loan commitments outstanding at March 31, 2020 when compared to the same period in 2019. The decrease in income tax expense for the three months ended March 31, 2020 was primarily attributable to lower levels of taxable income when compared to the same period in 2019.


Net income for the nine months ended March 31, 2020 totaled $2.1 million or $1.21 per diluted share, as compared to $2.2 million or $1.22 per diluted share for the same period in 2019. The $34 thousand decrease in net income during the nine months ended March 31, 2020 was primarily attributable to a $253 thousand decrease in net interest income, which was partially offset by a $67 thousand decrease in the provision for loan losses and a $151 thousand decrease in non-interest expense, when compared to the same period of 2019. The decrease in net interest income during the nine months ended March 31, 2020 was attributable to a $534 thousand decrease in interest income, which was partially offset by a $281 thousand decrease in interest expense. The decrease in interest income was primarily attributable to lower average yields on the Company’s floating rate investment and mortgage-backed securities and lower average balances of mortgage-backed securities which were offset by higher average balances of loans outstanding and higher yields on outstanding loans, when compared to the same period in 2019. The decrease in interest expense was primarily attributable to lower average market rates paid on FHLB borrowings, partially offset by higher average balances of time deposits and higher market rates paid on wholesale time deposits during the nine months ended March 31, 2020, when compared to the same period in 2019. The decrease in the provision for loan losses was primarily attributable to lower levels of loans for land acquisition and development, and residential construction, during the nine months ended March 31, 2020 compared to the same period of 2019. The decrease in non-interest income for the nine months ended March 31, 2020 compared to the same period of 2019, was primarily attributable to higher impairment charges on the Company’s private label mortgage-backed securities portfolio and lower levels of miscellaneous non-interest income, which were partially offset by gains on the sale of investment securities, and lower revenues from ATM fee income during the nine months ended March 31, 2020 when compared to the same period of 2019. The decrease in non-interest expense of $151 thousand was primarily the result of lower employee post retirement benefit costs, lower ATM program expenses and decreased federal deposit insurance expenses due to the FDIC Small Bank Assessment Credits, which were partially offset by higher legal expenses relating to the Company’s ESOP and higher provisions for off balance sheet reserves for loan commitments at March 31, 2020 when compared to the same period in 2019.

WVS Financial Corp. owns 100% of the outstanding common stock of West View Savings Bank. The Savings Bank is a Pennsylvania-chartered, FDIC savings bank, which conducts business from six offices located in the North Hills suburbs of Pittsburgh, Pennsylvania. In January 2009, West View Savings Bank began its second century of service to our communities. 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)

 

     March 31,
2020
(Unaudited)
     June 30,
2019
(Unaudited)
 

Total assets

   $  374,047      $  355,818  

Cash and cash equivalents

     2,372        4,379  

Certificates of deposits

     1,592        1,843  

Investment securities available-for-sale

     158,331        132,780  

Investment securities held-to-maturity

     3,495        3,995  

Mortgage-backed securities held-to-maturity

     102,310        108,331  

Net loans receivable

     90,652        90,588  

Deposits

     153,455        146,435  

FHLB advances: long-term, fixed-rate

     15,000        15,000  

FHLB advances: long-term, variable-rate

     85,000        85,000  

FHLB advances: short-term

     60,802        70,828  

Other short-term borrowings

     24,800        —    

Equity

     32,272        36,049  

Book value per share – Common Equity

     16.82        18.55  

Book value per share – Tier I Equity

     19.50        18.54  

Annualized Return on average assets

     0.80%        0.80%  

Annualized Return on average equity

     7.79%        8.14%  

Tier I leverage ratio

     10.45%        10.20%  


WVS FINANCIAL CORP. AND SUBSIDIARY

SELECTED CONSOLIDATED OPERATING DATA

(In thousands except per share data)

 

     Three Months Ended      Nine Months Ended  
     March 31,      March 31,  
     (Unaudited)      (Unaudited)  
     2020     2019      2020     2019  

Interest income

   $ 2,640     $ 3,158      $ 8,398     $ 8,932  

Interest expense

     990       1,326        3,284       3,565  
  

 

 

   

 

 

    

 

 

   

 

 

 

Net interest income

     1,650       1,832        5,114       5,367  

(Credit) provision for loan losses

     (7     10        (25     42  
  

 

 

   

 

 

    

 

 

   

 

 

 

Net interest income after (credit) provision for loan losses

     1,657       1,822        5,139       5,325  

Non-interest income

     70       87        302       307  

Non-interest expense

     884       897        2,601       2,752  
  

 

 

   

 

 

    

 

 

   

 

 

 

Income before income tax expense

     843       1,012        2,840       2,880  

Income taxes

     218       265        695       701  
  

 

 

   

 

 

    

 

 

   

 

 

 

NET INCOME

   $ 625     $ 747      $ 2,145     $ 2,179  
  

 

 

   

 

 

    

 

 

   

 

 

 

EARNINGS PER SHARE:

         

Basic

   $ 0.35     $ 0.42      $ 1.21     $ 1.22  

Diluted

   $ 0.35     $ 0.42      $ 1.21     $ 1.22  

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

    

Basic

     1,771,722       1,772,165        1,772,918       1,782,512  

Diluted

     1,771,722       1,772,165        1,772,918       1,782,584