Wvs Financial Corp (WVFC) SEC Filing 10-Q Quarterly report for the period ending Tuesday, March 31, 2020

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.