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
January 29, 2021
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 (§ 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 January 29, 2021, WVS Financial Corp. issued a press release to report net income and earnings per share for the three and six months ended December 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 January 29, 2021.
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: January 29, 2021 | By: | /s/ David J. Bursic | ||||
| President and | ||||||
| Chief Executive Officer | ||||||
Exhibit 99
| Release Date: | Further Information: | |
| IMMEDIATE RELEASE | David J. Bursic | |
| January 29, 2021 | President and CEO | |
| Phone: 412/364-1913 | ||
WVS FINANCIAL CORP. ANNOUNCES INCREASED NET INCOME AND EARNINGS PER
SHARE FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2020
Pittsburgh, PA — WVS Financial Corp. (NASDAQ: WVFC), the holding company for West View Savings Bank, today reported net income of $355 thousand or $0.20 per diluted share, for the three months ended December 31, 2020 as compared to $727 thousand or $0.41 per diluted share for the same period in 2019. The $372 thousand or 51.2% decrease in net income during the three months ended December 31, 2020 was primarily attributable to a $418 thousand decrease in net interest income, a $19 thousand decrease in non-interest income and an increase in non-interest expense of $6 thousand; partially offset by a decrease in income tax expense of $71 thousand, when compared to the same period of 2019. The decrease in net interest income was the result of a $1.3 million decrease in interest income which was partially offset by an $894 thousand decrease in interest expense for the three months ending December 31, 2020, when compared to the same period in 2019. The decrease in interest income for the three months ended December 31, 2020 was primarily attributable to lower market yields earned on the Company’s floating rate investment and mortgage-backed securities portfolio and lower average balances of mortgage-backed securities outstanding. The decrease in interest expense for the three months ended December 31, 2020 compared to the same period of the prior year, was primarily attributable to lower market rates paid on FHLB short-term and variable rate long-term borrowings and lower average balances of FHLB long-term borrowings. Also contributing to the decrease in interest expense for the quarter ended December 31, 2020 compared to the same quarter of the 2019, were lower rates paid on time deposits as well as lower average balances of wholesale time deposits. The increase in non-interest expense was primarily attributable to an increase of $27 thousand in federal deposit insurance expense, an increase of $13 thousand in equipment related expenses, a $9 thousand increase in data processing expense, and a $7 thousand increase in other operating expenses, which were partially offset by a $50 thousand decrease in charitable contribution expenses during the three months ended December 31, 2020 compared to the same period of 2019. The increase in federal deposit insurance expense was the result of the absence of the Small Bank Assessment Credits applied by the Federal Deposit Insurance Corporation (“FDIC”). The decrease in total non-interest income was primarily the result of an $11 thousand decrease in service charges on deposit accounts and lower gains on the sale of investment securities of $21 thousand during the quarter ended December 31, 2020, when compared to the same quarter of the prior year. Partially offsetting these decreases was the absence of other than temporary impairment losses for the three months ended December 31, 2020 compared to a $16 thousand other than temporary impairment loss on the private label mortgage-backed securities (PLMBS) portfolio during the three months ended December 31, 2019. The decrease in income tax expense for the quarter ended December 31, 2020 was due to lower taxable income, when compared to the same period of 2019.
Net income for the six months ended December 31, 2020 totaled $775 thousand or $0.44 per diluted share, as compared to $1.5 million or $0.86 per diluted share for the same period in 2019. The $745 thousand or 49.0% decrease in net income during the six months ended December 31, 2020 was primarily attributable to an $882 thousand decrease in net interest income, an $18 thousand decrease in non-interest income, a $39 thousand increase in non-interest expense partially offset by a
$205 thousand decline in income tax expense, when compared to the same period in 2019. The decrease in net interest income during the six months ended December 31, 2020 was attributable to a $2.6 million decrease in interest income which was partially offset by a $1.8 million decrease in interest expense when compared to the same period in 2019. The decrease in interest income was primarily the result of lower average yields on the Company’s floating rate investment and mortgage-backed securities, and lower outstanding balances of floating rate mortgage-backed securities partially offset by higher average outstanding balances of loans and investment securities, when compared to the same period in 2019. The decrease in interest expense for the six months ended December 31, 2020 when compared to the six months ended December 31, 2019, was primarily attributable to lower market rates paid on FHLB short-term and variable rate long-term advances, and wholesale time deposits, and lower average balances outstanding of both FHLB short-term and long-term advances and wholesale time deposits. The decrease in non-interest income was primarily attributable to lower charges on deposit accounts in the December 2020 period compared to the prior year period. The $39 thousand increase in other non-interest expense was primarily attributable to higher occupancy and equipment related expenses of $19 thousand, a $14 thousand increase in employee compensation and benefits, an $11 thousand increase in data processing expenses and a $77 thousand increase in federal deposit insurance expense as a result of the absence of the Small Bank Assessment Credits applied by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC provided small banks (those with consolidated assets of less than $10 billion) assessment credits after the Deposit Insurance Fund ratio reached, and remained at 1.38 percent. The Bank had no remaining credits as of December 31, 2020. Partially offsetting these increases in non-interest expenses was a decrease of $50 thousand in charitable contribution expenses and a $32 thousand decrease on the provision for off-balance sheet items relating to lower balances of unfunded mortgage loan commitments during the six months ended December 31, 2020, when compared to the same period in 2019. The decrease in income tax expense for the six months ended December 31, 2020 was primarily the result of lower levels of taxable income, 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. The Savings 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)
| December 31, 2020 (Unaudited) |
June 30, 2020 (Unaudited) |
|||||||
| Total assets |
$ | 317,444 | $ | 357,101 | ||||
| Cash and Cash Equivalents |
3,288 | 2,500 | ||||||
| Certificates of Deposits |
847 | 1,840 | ||||||
| Investment securities available-for-sale |
149,853 | 147,639 | ||||||
| Investment securities held-to-maturity |
2,745 | 3,495 | ||||||
| Mortgage-backed securities held-to-maturity |
58,440 | 97,106 | ||||||
| Net loans receivable |
90,324 | 91,032 | ||||||
| Deposits |
148,223 | 151,335 | ||||||
| FHLB advances: long-term, fixed-rate |
10,000 | 15,000 | ||||||
| FHLB advances: long-term, variable-rate |
25,000 | 85,000 | ||||||
| FHLB advances: short-term |
92,681 | 59,159 | ||||||
| Short-term borrowings |
1,000 | 7,000 | ||||||
| Equity |
38,427 | 36,913 | ||||||
| Book value per share – Common Equity |
20.20 | 19.36 | ||||||
| Book value per share – Tier I Equity |
19.93 | 19.65 | ||||||
| Annualized Return on average assets |
0.46 | % | 0.69 | % | ||||
| Annualized Return on average equity |
4.12 | % | 6.90 | % | ||||
| Tier I leverage ratio |
11.75 | % | 10.16 | % | ||||
WVS FINANCIAL CORP. AND SUBSIDIARY
SELECTED CONSOLIDATED OPERATING DATA
(In thousands except per share data)
| Three Months Ended December 31, (Unaudited) |
Six Months Ended December 31, (Unaudited) |
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| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Interest income |
$ | 1,459 | $ | 2,771 | $ | 3,124 | $ | 5,758 | ||||||||
| Interest expense |
216 | 1,110 | 542 | 2,294 | ||||||||||||
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| Net interest income |
1,243 | 1,661 | 2,582 | 3,464 | ||||||||||||
| Provision for loan losses |
(8 | ) | (8 | ) | (7 | ) | (18 | ) | ||||||||
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| Net interest income after provision for loan losses |
1,251 | 1,669 | 2,589 | 3,482 | ||||||||||||
| Non-interest income |
103 | 122 | 214 | 232 | ||||||||||||
| Non-interest expense |
876 | 870 | 1,756 | 1,717 | ||||||||||||
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| Income before income tax expense |
478 | 921 | 1,047 | 1,997 | ||||||||||||
| Income taxes |
123 | 194 | 272 | 477 | ||||||||||||
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| NET INCOME |
$ | 355 | $ | 727 | $ | 775 | $ | 1,520 | ||||||||
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| EARNINGS PER SHARE: |
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| Basic |
$ | 0.20 | $ | 0.41 | $ | 0.44 | $ | 0.86 | ||||||||
| Diluted |
$ | 0.20 | $ | 0.41 | $ | 0.44 | $ | 0.86 | ||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: |
|
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| Basic |
1,749,372 | 1,771,457 | 1,748,705 | 1,773,509 | ||||||||||||
| Diluted |
1,749,372 | 1,771,457 | 1,748,705 | 1,773,509 | ||||||||||||