Bank Capital Ratios Remain StrongThe Bank's capital ratios have continued to strengthen and remain above regulatory requirements. As of December 31, 2012, the ratio of tier one (core) capital to adjusted total assets stood at 9.36% and the ratio of total risk-based capital to risk-weighted assets was 12.93%. Year-to-Date Results For the six months ended December 31, 2012, the Company's net income totaled $4.1 million, or $0.16 basic and $0.15 diluted earnings per share, compared with a loss of $2.7 million, or $0.11 basic and diluted loss per share, for the six-month period ended December 31, 2011. The $6.8 million improvement in the Company's results is attributable to a $1.0 million improvement in net interest income, a reduction in the provision for loan losses of $1.4 million from improving asset quality, a $4.7 million increase in non-interest income substantially from higher overall mortgage banking revenue, a $0.2 million increase in non-interest expense, and higher federal income tax provision of $0.1 million. About PVF Capital Corp. Park View Federal is a wholly-owned subsidiary of PVF Capital Corp. and operates 16 full-service offices located throughout the Greater Cleveland area. For additional information, visit our website 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.