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 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 File Number) 

 

(IRS Employer

jurisdiction of incorporation)

   

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.    [    ]


Item 2.02    Results of Operations and Financial Condition

On July 30, 2020, WVS Financial Corp. issued a press release to report net income and earnings per share for the three and twelve months ended June 30, 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 July 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:    July 30, 2020     By:       /s/ David J. Bursic                                
      President and
      Chief Executive Officer
EX-99

Exhibit 99

 

Release Date:

  

Further Information:

IMMEDIATE RELEASE

  

David J. Bursic

July 30, 2020

  

President and CEO

   Phone: 412/364-1913

WVS FINANCIAL CORP. ANNOUNCES NET INCOME AND EARNINGS PER SHARE FOR THE

FOURTH QUARTER AND FISCAL YEAR ENDED JUNE 30, 2020

Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $345 thousand or $0.20 per diluted share, for the three months ended June 30, 2020 as compared to $615 thousand or $0.35 per diluted share for the same period in 2019.    The $270 thousand decrease in net income during the three months ended June 30, 2020 was primarily attributable to a $298 thousand decrease in net interest income, a $58 thousand increase in the provision for loan losses and a $48 thousand decrease in non-interest income, which were partially offset by a $76 thousand decrease in non-interest expense and a $58 thousand decrease in income tax expense.     The decrease in net interest income during the three months ended June 30, 2020, when compared to the same period of 2019, was attributable to a $1.0 million decrease in interest income, which was partially offset by a $736 thousand decrease in interest expense.    The decrease in interest income was primarily attributable to lower average yields on the Company’s floating rate investment, mortgage-backed securities, and loan portfolios, which were partially offset by higher average balances in the investment and loan portfolios.    The decrease in interest expense was primarily attributable to lower rates paid on Federal Home Loan Bank (“FHLB”) borrowings and time deposits, during the three months ended June 30, 2020, when compared to the same period in 2019.    The decrease in non-interest income was primarily the result of a $35 thousand increase in other-than-temporary impairment losses on the private label mortgage-backed securities (PLMBS), a $10 thousand decrease in ATM fee income, a $9 thousand decrease in service charges on deposit accounts, partially offset by gains on the sales of investment securities of $8 thousand.    The increase in the provision for loan losses during the quarter ended June 30, 2020, when compared to the same period of 2019, was primarily attributable to an increase in the Company’s Allowance for Loan and Lease Losses (“ALLL”) reserve factors related to the economic uncertainty due to the COVID-19 pandemic. The $58 thousand decrease in income tax expense for the quarter ended June 30, 2020 was primarily attributable to lower levels of taxable income when compared to the same period of 2019.

Net income for the twelve months ended June 30, 2020 totaled $2.5 million or $1.41 per diluted share, as compared to $2.8 million or $1.57 per diluted share for the same period in 2019. The $305 thousand decrease in net income during the fiscal year ended June 30, 2020 when compared to fiscal 2019, was primarily attributable to a


$551 thousand decrease in net interest income and a $53 thousand decrease in non-interest income, which were partially offset by a $10 thousand decrease in the provision for loan losses, a decrease of $227 thousand in non-interest expense and a $62 thousand decrease in income tax expense, when compared to the same period in 2019. The decrease in net interest income during the twelve months ended June 30, 2020 was attributable to a $1.6 million decrease in interest income, which was partially offset by a $1.0 million 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, FHLB stock and loan portfolio, and lower average balances of mortgage-backed securities, which were partially offset by higher average balances of investment securities available-for-sale and certificates of deposit when compared to the same period in 2019. The decrease in interest expense was primarily due to lower average market rates paid on FHLB borrowings and time deposits, and lower average balances of FHLB short-term advances outstanding, which were partially offset by higher average balances of FHLB long-term advances outstanding, during the fiscal year ended June 30, 2020, when compared to the same period in 2019.    The decrease in non-interest income was primarily the result of a $60 thousand increase in other than temporary impairment losses on the private label mortgage-backed securities portfolio, a $17 thousand decrease in ATM fee income and a $10 thousand decrease in service charges on deposit accounts, which were partially offset by gains on the sales of investment securities of $42 thousand.    The decrease in non-interest expense was primarily attributable to lower employee post-retirement benefit costs, lower FDIC insurance premium expenses due to the FDIC Small Bank Assessment Credits and lower ATM program expenses during fiscal 2020 when compared to the same period in 2019. The decrease in the provision for loan losses was primarily the result of changes in the associated loan balances and the return of one non-performing loan to performing status, partially offset by an increase in the Company’s ALLL reserve factors related to the economic uncertainty due to the COVID-19 pandemic. The decrease in income tax expense for the twelve months ended June 30, 2020 when compared to the same period in 2019 was primarily attributable to lower taxable income.

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

Total assets

     $  357,101       $ 355,818  

Cash and Cash Equivalents

     2,500       4,379  

Certificates of Deposits

     1,840       1,843  

Investment securities available-for-sale

     147,639       132,780  

Investment securities held-to-maturity

     3,495       3,995  

Mortgage-backed securities held-to-maturity

     97,106       108,331  

Net loans receivable

     91,032       90,588  

Deposits

     151,335       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

     59,159       70,828  

Equity

     36,913       36,050  

Book value per share – Common Equity

     19.36       18.55  

Book value per share – Tier I Equity

     19.65       18.54  

Annualized Return on average assets

     0.69%       0.80%  

Annualized Return on average equity

     6.90%       8.14%  

Tier I leverage ratio

     10.16%       10.20%  


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)
  

 

 

 

  

 

 

 

     2020  

2019

   2020   2019
  

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

Interest income

       $ 2,087          $ 3,121            $  10,485           $   12,054    

Interest expense

     570       1,306        3,854       4,872  

Net interest income

     1,517       1,815        6,631       7,182  

Provision for loan losses

     95       37        70       80  

Net interest income after provision for loan losses

     1,422       1,778        6,561       7,102  

Non-interest income

     60       108        362       415  

Non-interest expense

     962       1,038        3,563       3,790  

Income before income tax expense

     520       848        3,360       3,727  

Income taxes

     175       233        870       932  

NET INCOME

     $  345       $   615        $  2,490       $  2,795  

EARNINGS PER SHARE:

         

Basic

     $0.20       $0.35        $1.41       $1.57  

Diluted

     $0.20       $0.35        $1.41       $1.57  

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

    

Basic

     1,753,946       1,774,553        1,768,201       1,780,527  

Diluted

     1,753,946       1,774,553        1,768,201       1,780,581