PVF Capital Corp. Announces Fiscal Second Quarter Results
- Significant progress in problem asset resolution. Nonperforming assets decline $11.0 million, or 14.12%, to $67.0 million.
- Delinquent loans under 90 days past due decline $3.6 million and improve to 1.14% of loans outstanding from 1.81%.
- Strong mortgage banking activities resulting in mortgage banking income of $2.6 million, including $719,000 recovery of mortgage servicing asset valuation allowance.
- Credit costs remain elevated with provision for loan losses of $4.5 million and loss on real estate owned of $536,000.
- Deferred tax asset valuation allowance of $1.9 million recognized in period.
- Continued progress towards achieving regulatory targeted adversely classified assets ratio.
- Bank capital ratios remain strong.
SOLON, Ohio, Jan. 26, 2011 (GLOBE NEWSWIRE) -- PVF Capital Corp. (Nasdaq:PVFC), the parent company of Park View Federal Savings Bank, announced a net loss of $3,709,928, or $0.14 basic and diluted loss per share for the quarter ended December 31, 2010.
The Company continued to experience an elevated level of mortgage lending activity during the quarter, as borrowers took advantage of the low mortgage interest rates during much of the period. This mortgage volume resulted in mortgage loan sale income of $2.5 million, which was a decrease of $1.2 million from the linked quarter of September 30, 2010, and an increase of $1.2 million over the prior year quarter. Offsetting the revenues associated with the elevated levels of refinance activity was an increase in the amortization of the mortgage servicing asset, resulting in a net servicing loss of $677,000 for the period, compared with a net servicing loss of $150,000 for the linked quarter and servicing income of $107,000 for the prior year quarter. The back-up in mortgage rates during the second half of the quarter resulted in a slow down of refinancing activities and corresponding prepayment speeds from the prior quarter and resulted in a partial recovery in the estimated fair value of certain tranches of the Company's mortgage servicing rights, which had a valuation allowance of $1.2 million. The Company recognized a recovery of $719,000 during the period, leaving a valuation allowance of $465,000. The estimated value of the Company's mortgage servicing rights portfolio, as a whole, continues to exceed its carrying value.
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