PVF Capital Corp. Announces Increased Earnings For Fiscal 2013 Second Quarter
In comparison with the first quarter of fiscal 2013, non-interest income increased $0.9 million, primarily due to higher mortgage banking revenues of $0.6 million, and higher service charges and other fees of $0.3 million.
Asset Quality Stable
The Company continued to make progress with respect to its multi-year strategic plan to improve the Bank's balance sheet and reduce problem assets.
The classified assets to core capital plus general valuation allowance ratio improved to 42.4% at December 31, 2012, compared with 60.29% at the end of the prior-year linked quarter and 44.7% at September 30, 2012. The Company also reduced its level of classified assets plus special mention assets to core capital plus general valuation allowance ratio to 47.3% at December 31, 2012, as compared to 75.8% a year ago and 51.7% at September 30, 2012.During the quarter, nonperforming loans increased $0.5 million, or 2.8%, to $18.4 million, compared with the first quarter of fiscal 2013, while other real estate owned increased $0.5 million to $7.7 million, resulting in total nonperforming assets of $26.1 million. This was an increase of $1.0 million, or 4.0%, compared with total nonperforming assets of $25.1 million at September 30, 2012, and a decline of $14.2 million, or 35.2%, over the prior year. The allowance for loan losses at December 31, 2012 was $15.1 million, or 2.7% of total loans. This compares with an allowance of $16.1 million, or 2.9% of total loans, at September 30, 2012, and $17.5 million, or 3.1% of total loans, at December 31, 2011. The allowance's coverage of nonperforming loans was 82.5% at December 31, 2012, compared with 90.3% at September 30, 2012, and 57.8% at December 31, 2011. Net charge-offs for the quarter ended December 31, 2012 were $2.0 million. The net charge-offs included approximately $0.6 million related to prior valuation allowances which had been specifically reserved and included in the Company's historical loss factors and, accordingly, the allowance for loan losses did not need to be replenished after recording these charge-offs. The provision for loan losses totaled $1.0 million for the current quarter compared with $1.1 million for the quarter ended September 30, 2012, and $2.0 million for the quarter ended December 31, 2011. The lower provision level in the current quarter reflects the Company's continued progress in improving the risk profile and strengthening the performance of the loan portfolio.
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