CapitalWorks Private Equity Firm Cleveland Ohio

PVF Capital Corp. Announces Quarterly Operating Results

  • Net income for the third quarter of fiscal 2010 of $1.3 million as a result of successfully completing previously announced trust preferred securities obligation cancellation resulting in pre-tax gain of $9.1 million.
  • PVF Capital Corp. successfully completed $30 million shareholder rights offering, improving its tangible common equity ratio to 9.59%.
  • $15 million of the offering proceeds was invested into Park View Federal Savings Bank improving its regulatory capital ratios to 8.23% tier one (core) and 12.19% total risk based, exceeding the requirements of the regulatory order.
  • Linked quarter decline in nonperforming assets of 5.2%.
  • Managed cost of deposits resulting in a 6 basis point expansion of net interest margin to 2.55% from 2.49% in the December 2009 quarter.
  • Provision for Loan Losses of $7.0 million during the quarter resulting in an allowance for loan losses of $30.3 million or 4.76% of loans.

PVF Capital Corp., the parent company of Park View Federal Savings Bank, announced net income of $1.3 million or $0.14 basic and $0.13 diluted earnings per share for the quarter ended March 31, 2010, as compared to a loss of $8.6 million or $1.10 basic and diluted loss per share for the prior year comparable period. Net income for the current period resulted primarily from the completion of the previously entered exchange agreement whereby the Company paid $400,000 in cash, and issued $600,000 in common stock and warrants valued at $1.0 million in exchange for the cancellation of $10.0 million of Trust Preferred Securities Obligations. This transaction resulted in a pre-tax gain of $9.1 million, which included the elimination of $1.1 million in accrued interest due on this debt. The quarter was highlighted by the successful completion of the shareholders’ rights offering which was oversubscribed and resulted in the raising of $30 million in new capital. The additional capital improved the Company’s tangible common equity ratio to 9.59% at March 31, 2010 from 6.16% the prior quarter.

Robert J. King, Jr., President and Chief Executive Officer commented, “The completion of the trust preferred cancellation combined with the raising of $30 million in new common shares has recapitalized the Company and is a significant step forward in the turnaround plan for Park View. The participation and support of the board, management and shareholders was both critical and tremendous in raising capital in this market environment. I want to thank the shareholders, associates, customers and the community for the trust and confidence they placed in Park View throughout this process and as we continue to restore its core profitability and asset quality.”

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