Bank Capital Ratios Exceed Regulatory LevelsThe Bank's capital ratios have continued to exceed the requirements prescribed under the regulatory order for fiscal 2012. As of June 30, 2012, the ratio of tier one (core) capital to adjusted total assets stood at 8.74% and total risk-based capital to risk-weighted assets was 13.10%. The requirements under the regulatory order are 8.00% and 12.00%, respectively. The Company's tangible book value now stands at $2.74 per share. Fiscal 2012 Full-Year Results For the year ended June 30, 2012, the Company's net loss totaled $1.3 million, or $0.05 basic and diluted loss per share, compared with a loss of $9.7 million, or $0.38 basic and diluted loss per share, for 2011. The $8.4 million improvement in the Company's results is attributable to a $1.2 million improvement in net interest income; a reduction in the provision for loan losses of $6.6 million as a result of the improved asset quality; a $1.1 million increase in non-interest income from higher overall mortgage banking revenue of $2.5 million less a decline in gains on sale of securities of $1.2 million; a $0.9 million increase in non-interest expense; and lower federal income tax provision of $0.3 million. About PVF Capital Corp. Park View Federal is a wholly-owned subsidiary of PVF Capital Corp. and operates 17 full-service offices located throughout the Greater Cleveland area. For additional information, visit our web site at parkviewfederal.com. PVF Capital Corp.'s common shares trade on the NASDAQ Capital Market under the symbol PVFC. Use of Non-GAAP Financial Measures This release included certain financial information determined by methods other than in accordance with GAAP. One non-GAAP performance metric that management believes is useful in analyzing underlying performance trends is pre-tax, pre-credit provision income. This is the level of earnings adjusted to exclude the impact of:
- provision expense and credit related charges involving the valuation and disposition of other real estate owned, which are excluded because its absolute level is elevated and volatile in times of economic stress;
- available-for-sale and other securities gains/losses, which are excluded because in times of economic stress securities market valuations may also become particularly volatile; and
- certain items identified by management to be outside of ordinary banking activities, and/or by items that, while they may be associated with ordinary banking activities, are so unusually large that their outsized impact is believed by management at the time to be infrequent or short-term in nature, which management believes may distort the Company's underlying performance trends.