FORWARD LOOKING STATEMENTS
In the normal course of business, we, in an effort to help keep our shareholders
and the public informed about our operations, may from time to time issue or
make certain statements, either in writing or orally, that are or contain
forward-looking statements, as that term is defined in the U.S. federal
securities laws. Generally, these statements relate to business plans or
strategies, projected or anticipated benefits from acquisitions made by or to be
made by us, projections involving anticipated revenues, earnings, profitability
or other aspects of operating results or other future developments in our
affairs or the industry in which we conduct business. Forward-looking statements
may be identified by reference to a future period or periods or by the use of
forward-looking terminology such as "anticipated," "believe," "expect,"
"intend," "plan," "estimate" or similar expressions.
Although we believe that the anticipated results or other expectations reflected
in our forward-looking statements are based on reasonable assumptions, we can
give no assurance that those results or expectations will be attained.
Forward-looking statements involve risks, uncertainties and assumptions (some of
which are beyond our control), and as a result actual results may differ
materially from those expressed in forward-looking statements. Factors that
could cause actual results to differ from forward-looking statements include,
but are not limited to, the following, as well as those discussed elsewhere
herein:
• our investments in our businesses and in related technology could require
additional incremental spending, and might not produce expected deposit and
loan growth and anticipated contributions to our earnings;
• general economic or industry conditions could be less favorable than expected,
resulting in a deterioration in credit quality, a change in the allowance for
loan losses or a reduced demand for credit or fee-based products and services;
• the effects and extent of the coronavirus (COVID-19) pandemic on the global
economy, and its impact on the Company's operations and financial condition,
including the granting of various loan payment deferral and fee waivers, the
possibility of credit losses in our loan portfolios and increases in our
allowance for credit losses as well as possible impairments on the securities
we hold;
• changes in the interest rate environment could reduce net interest income and
could increase credit losses;
• the conditions of the securities markets could change, which could adversely
affect, among other things, the value or credit quality of our assets, the
availability and terms of funding necessary to meet our liquidity needs and
our ability to originate loans and leases;
• changes in the extensive laws, regulations and policies governing financial
holding companies and their subsidiaries could alter our business environment
or affect our operations;
• the potential need to adapt to industry changes in information technology
systems, on which we are highly dependent, could present operational issues or
require significant capital spending;
• competitive pressures could intensify and affect our profitability, including
as a result of continued industry consolidation, the increased availability of
financial services from non-banks, technological developments such as the
internet or bank regulatory reform; and
• acts or threats of terrorism and actions taken by the United States or other
governments as a result of such acts or threats, including possible military
action, could further adversely affect business and economic conditions in the
United States generally and in our principal markets, which could have an
adverse effect on our financial performance and that of our borrowers and on
the financial markets and the price of our common stock.
30
--------------------------------------------------------------------------------
Table of Contents
You should not put undue reliance on any forward-looking statements.
Forward-looking statements speak only as of the date they are made, and we
undertake no obligation to update them in light of new or future events except
to the extent required by federal securities laws.
GENERAL
WVS Financial Corp. (WVS or the "Company") is the parent holding company of West
View Savings Bank ("West View" or the "Savings Bank"). The Company was organized
in July 1993 as a Pennsylvania-chartered unitary bank holding company and
acquired 100% of the common stock of the Savings Bank in November 1993.
West View Savings Bank is a Pennsylvania-chartered, FDIC-insured stock savings
bank conducting business from five offices in the North Hills suburbs of
Pittsburgh. The Savings Bank converted from the mutual to the stock form of
ownership in November 1993. The Savings Bank had no subsidiaries at March 31,
2022.
The operating results of the Company depend primarily upon its net interest
income, which is determined by the difference between income on interest-earning
assets, principally loans, mortgage-backed securities and investment securities,
and interest expense on interest-bearing liabilities, which consist primarily of
deposits and borrowings. The Company's net income is also affected by its
provision for loan losses, as well as the level of its non-interest income,
including loan fees and service charges, and its non-interest expenses, such as
compensation and employee benefits, income taxes, deposit insurance and
occupancy costs.
Effects of COVID-19 Pandemic
The Company's business is dependent upon the willingness and ability of our
employees and clients to conduct banking and other financial transactions. The
persistence of the novel coronavirus (COVID-19) pandemic has negatively impacted
the global economy, disrupted global supply chains and increased unemployment
levels. While the full effects of the pandemic remain unknown, the Company is
committed to supporting its customers, employees and communities during this
difficult time. The Company has given hardship relief assistance to customers,
including the consideration of various loan payment deferral and fee waiver
options, and encourages customers to reach out for assistance to support their
individual circumstances. The pandemic could result in the recognition of credit
losses in our loan portfolios and increases in our allowance for credit losses,
particularly if businesses were to close once again, the impact on the global
economy worsens, or more customers draw on their lines of credit or seek
additional loans to help finance their businesses. Similarly, because of
changing economic and market conditions affecting issuers, we may be required to
recognize impairments on the securities we hold. The extent to which the
COVID-19 pandemic impacts our business, results of operations, and financial
condition, as well as our regulatory capital and liquidity ratios, will depend
on future developments, which are highly uncertain and cannot be predicted,
including the scope and duration of the pandemic and actions taken by
governmental authorities and other third parties in response to the pandemic.
The Company has responded to the circumstances surrounding the pandemic to
support the safety and well-being of the employees, customers and shareholders
by enacting the following measures:
• Modified branch business hours Monday through Thursday to close at 4:00 pm (no
change), Friday close at 5:00 pm (as opposed to 6:00 pm) and Saturday close at
12:00 pm (no change);
• Monitor federal, state and local COVID-19 websites and adopt guidance as
appropriate and feasible;
• Encourage customers to use our various on-line portals (e.g. internet banking,
online bill pay service), automated teller machines and night depositories to
redirect routine transactions away from our branch staff as much as possible;
and
• Non-branch banking services (e.g. lending, accounting, check and electronic
processing) continue to be offered consistent with COVID-19 guidelines.
Branch Closure
On December 17, 2021, the Company closed its leased branch office
located at 572 Lincoln Avenue, Bellevue, PA (Bellevue Branch). Upon closing the
Bellevue Branch, associated deposits totaling approximately $11.9 million were
transferred to our West View Borough branch. Management anticipates that a
significant portion of the transferred deposits will remain with the West View
Borough branch.
31
--------------------------------------------------------------------------------
Table of Contents
FINANCIAL CONDITION
The Company's assets totaled $368.8 million at March 31, 2022, as compared to
$346.1 million at June 30, 2021. The $22.7 million, or 6.6%, increase in total
assets was primarily due to a $47.0 million increase in floating rate U.S.
Government Agency MBS, which was partially offset by a $16.3 million decrease in
available-for-sale investment securities, a $5.5 million decrease in
held-to-maturity investment securities, and a $4.5 million decrease in net loans
receivable. The decreases in investment securities available-for-sale and
held-to-maturity were primarily the result of maturities and early issuer
redemptions of $49.1 million and $9.1 million, respectively, partially offset by
purchases of investment securities totaling $38.7 million. The increase in
mortgage-backed securities was due primarily to purchases of floating rate U.S.
Government Agency mortgage-backed securities totaling approximately
$79.2 million, partially offset by repayments of $32.3 million on
mortgage-backed securities. The decrease in net loans receivable was
attributable to repayments in excess of originations.
The Company's total liabilities increased $23.4 million, or 7.6%, to
$331.1 million as of March 31, 2022 from $307.7 million as of June 30, 2021. The
increase in total liabilities was primarily comprised of a
$48.7 million increase in FHLB short-term advances and a $4.5 million increase
in deposits, partially offset by a $30.0 million decrease in FHLB long-term
advances. The increase in total deposits was primarily attributable
to increases in non-interest bearing accounts, NOW accounts and money market
accounts of $2.3 million, $1.3 million, $1.1 million and $241 thousand
respectively, partially offset by advance payments by borrowers for taxes and
insurance of $590 thousand. The increase in non-interest bearing and NOW
accounts were primarily the result of normal fluctuations in such accounts. A
significant portion of retail time deposits were transferred into savings
accounts. The increase FHLB short-term borrowings and brokered deposits
primarily funded purchases of mortgage-backed securities and available-for-sale
investment securities. See also Quantitative and Qualitative Disclosures About
Market Risk "Asset and Liability Management".
Total stockholders' equity decreased $729 thousand, or 1.9%, to $37.7 million as
of March 31, 2022, from $38.4 million as of June 30, 2021. The decrease in
stockholders' equity was primarily attributable to a decrease in accumulated
other comprehensive income of $1.2 million and cash dividends paid
totaling$522 thousand, which were partially offset by net income totaling
$939 thousand and an increase in amortization of unallocated ESOP shares of $101
thousand. The decrease in accumulated other comprehensive income was primarily
the result of an increase in the unrealized loss on the Company's
available-for-sale investment portfolio.
RESULTS OF OPERATIONS
General. WVS reported net income of $338 thousand, or $0.19 earnings per share
(basic and diluted), for the three months ended March 31, 2022 as compared to
$265 thousand, or $0.15 per share (basic and diluted), for the same period in
2021. The $73 thousand increase in net income for the for the three
monthsended March 31, 2022 was primarily attributable to a $84 thousand increase
in net interest income, a $63 thousand decrease in non-interest expense and a $7
thousand decrease in the provision for loan losses, which were offset by a
$25 thousand increase in income tax expense and a $56 thousand decrease in
non-interest income, when compared to the same period in 2021.
Net income for the nine months ended March 31, 2022 totaled $939 thousand, or
$0.54 per share (diluted and basic), as compared to $1.0 million, or $0.59 per
diluted share for the same period in 2021. The $102 thousand, or 9.8%, decrease
in net income during the nine months ended March 31, 2022 was
primarilyattributable to a $152 thousand decrease in net interest income and a
$32 thousand increase in non-interest expense, offset by a $41 thousand decline
in income tax expense, a $4 thousand increase in non-interest income and a
$36 thousand reduction in provision for loan losses, when compared to the same
period in 2021.
Net Interest Income. The Company's net interest income increased by
$84 thousand, or 7.4%, for the three months ended March 31, 2022, when compared
to the same period in 2021. The increase in net interest income is attributable
to a $68 thousand increase in interest and dividend income and a $16
thousand decreasein interest expense. The increase in interest and dividend
income during the three months ended March 31, 2022 was primarily attributable
to higher average balances of floating rate MBS and higher yields on loans and
investment securities (other than MBS) which were offset by lower average
balances of loans and investment securities outstanding and lower yields on the
floating rate MBS portfolio, when compared to the same period in 2021. The
decrease in interest expense during the three months ended March 31, 2022 was
primarily attributable to lower average balances of brokered certificates of
deposits (CDs) and lower yields paid on FHLB advances and money market accounts
offset by higher average balances of FHLB advances outstanding and higher yields
paid on brokered CDs, when compared to the same period in 2021.
For the nine months ended March 31, 2022, net interest income decreased
$152 thousand, or 4.1%, when compared to the same period in 2021. The decrease
in net interest income was attributable to a $391 thousand decrease in interest
and dividend income, which was offset by a $239 thousand decrease in interest
expense when compared to the same period in 2021. The decrease in interest and
dividend income for the nine months ended March 31, 2022, was primarily the
result of lower average balances of loans outstanding and lower average yields
on investment and floating rate MBS offset by higher average balances of
investment and floating rate MBS outstanding and higher average yields earned on
the loan portfolio, when compared to the same period in 2021. The decrease in
interest expense for the nine months ended March 31, 2022was primarily
attributable to lower average rates paid on savings deposits (including brokered
CDs) and FHLB advances offset by higher outstanding balances of FHLB advances
and savings deposits (including brokered CDs), when compared to the same period
in 2021.
Interest Income. Interest income on net loans receivable decreased $53 thousand,
or 7.0%, and $309 thousand, or 12.8%, for the three and nine months ended March
31, 2022, respectively, when compared to the same periods in 2021. The decrease
for the three and nine months ended March 31, 2022 was primarily attributable to
a $11.1 million and $11.6 million decrease in the average balance of net loans
receivable, respectively, partially offset by a 22 and 1 basis point increase in
the average loan portfolio, respectively, when compared to the same periods in
2021. The decrease in the average balance of loans outstanding in both periods
was primarily attributable to decreased loan originations and purchases.
32
--------------------------------------------------------------------------------
Table of Contents
Interest income on investment securities decreased $36 thousand or 9.7% and
$178 thousand or 14.8% for the three and nine months ended March 31, 2022,
respectively, when compared to the same periods in 2021. The decrease for the
three months ended March 31, 2022 was primarily attributable to a $16.4 million
decrease in the average balance of these investment securities, partially offset
by a 209 basis point increase in the weighted-average yield on the
available-for-sale portfolio when compared to the same period in 2021. The
decrease for the nine months ended March 31, 2022 was primarily attributable to
a 6 basis point decrease in weighted-average yield on the available-for-sale
portfolio, partially offset by a $522 thousand increase in the average balance
of these investment securities when compared to the same period in 2021.
Interest income on mortgage-backed securities increased $127 thousand or 85.2%
for the three months ended March 31, 2022, when compared to the same period in
2021. The increase for the three months ended March 31, 2022 was primarily
attributable to an increase of $78.8 million in average balances of
U.S.Government agency mortgage-backed securities partially offset by a decrease
of 29 basis points in the weighted-average yield earned on U.S. Government
agency mortgage-backed securities when compared to the same period in 2021. The
increase in the average balances of U.S. Government agency mortgage-backed
securitiesduring the three months ended March 31, 2022 was attributable to
purchases of $79.2 million of floating rate U.S. Government agency
mortgage-backed securities, partially offset by principal paydowns of
$32.3 million, when compared to the same period in 2021. The $32.3 million in
principal paydowns was used to purchase floating rate U.S. Government agency
mortgage-backed securities. Interest income on mortgage-backed securities
increased $91 thousand or 14.6% for the nine months ended March 31, 2022, when
compared to the same period in 2021. The increase for the nine months ended
March 31, 2022 was primarily attributable to a $35.3 million increase in such
average balances, partially offset by a decrease of 27 basis points in the
weighted-average yield earned on U.S. Government agency mortgage-backed
securities, when compared to the same period in 2021.
Interest income on bank certificates of deposit decreased $2 thousand and
$8 thousand for the three and nine months ended March 31, 2022 respectively,
when compared to the same periods in 2021. The decrease for the three months
ended March 31, 2022 was attributable to a $262 thousand decrease in the average
balances of bank time deposits and an 82 basis point decrease in average yield
earned on bank time deposits when compared to the same period in 2021. The
decrease for the nine months ended March 31, 2022 was attributable to a
$716 thousand decrease in the average balances of bank time deposits, partially
offset by a 27 basis point increase in average yield earned on bank time
deposits when compared to the same period in 2021.
Dividend income on FHLB stock increased $32 thousand or 84.2% for the three
months ended March 31, 2022 when compared to the same period in 2021. The
increase for the three months ended March 31, 2022 was primarily attributable to
a $3.6 million increase in the average balance of FHLB stock held,
partiallyoffset by 78 basis point decrease in the weighted-average yield
earned. For the nine months ended March 31, 2022, dividend income on FHLB stock
increased $13 thousand or 7.5%, when compared to the same period in 2021. The
increase for the nine months ended March 31, 2022 was primarily attributable to
a $988 thousand increase in the average balance of FHLB stock held, partially
offset by a 82 basis point decrease in the weighted -average yield earned.
Interest Expense. Interest paid on FHLB short-term advances increased
$68 thousand or 272.0% for the three months ended March 31, 2022, when compared
to the same period in 2021. The increase for the three months ended March 31,
2022 was primarily attributable to a $124.3 million increase in the average
balanceof FHLB short-term advances outstanding, partially offset by a 8 basis
point decrease in the weighted-average rate paid on FHLB short-term balances
outstanding. Interest paid on FHLB short-term advances increased $123 thousand
or 144.7% for the nine months ended March 31, 2022, when compared to the same
period in2021. The increase for the nine months ended March 31, 2022 was
primarily attributable to a $33.6 million increase in the average balance of
FHLB short-term advances outstanding and a 7 basis point increase in the
weighted-average rate paid on FHLB short-term balances outstanding. The
decrease in rates paid on FHLB short-term borrowings were consistent with
decreases in short-term market interest rates.
Interest paid on FHLB long-term fixed rate advances decreased $38 thousand for
the three months ended March 31, 2022, when compared to the same period in
2021. The $134 thousand decrease for the three months ended March 31, 2022 was
primarily attributable to a $5.0 million decrease in the average balance of FHLB
long-term fixed rate advances, when compared to the same period in 2021. The
decrease for the nine months ended March 31, 2022 as primarily attributable to a
$5.0 million decrease in the average balance on FHLB long-term fixed rate
advances and a 37 basis point decrease in the weighted average rate paid on such
advances. The decrease in average balances of FHLB long-term fixed rate
advances outstanding was due to better rates and terms in FHLB short-term
advances and wholesale time deposits.
Interest paid on FHLB long-term variable rate advances decreased $19 thousand
for the three months ended March 31, 2022, when compared to the same period in
2021. The decrease for the three months ended March 31, 2022 was primarily
attributable to a $25.0 million decrease in the average balance of FHLB
long-term variable rate advances and a 30 basis point decrease in the
weighted-average rate paid on FHLB long-term variable rate advances. Interest
paid on FHLB long-term variable rate advances decreased $76 thousand for the
nine months ended March 31, 2022, when compared to the same period in 2021. The
decrease for thenine months ended March 31, 2022 was primarily attributable to a
$1.9 million decrease in the average balance of FHLB long-term variable rate
advances and a 21 basis point decrease in the weighted-average rate paid in FHLB
long-term variable rate advances.
Interest expense on deposits decreased $27 thousand, or 44.3%, for the three
months ended March 31, 2022, when compared to the same period in 2021. The
decrease in interest expense on deposits for the three months ended March 31,
2022 was primarily attributable to a decrease of $46.2 million in the average
balanceof time deposits and NOW accounts, partially offset by a 4 basis point
increase in the weighted-average rate paid on time deposits when compared the
same period in the prior year. Interest expense on deposits decreased
$151 thousand or 58.8% for the nine months ended March 31, 2022, when compared
to the same period in 2021. The decrease in interest expense on deposits for
the nine months ended March 31, 2022 was primarily attributable to a decrease of
41 basis point decrease in the weighted-average rate paid on time deposits
partially offset by a $15.6 million in the average balance of time deposits,
when compared to the same period in the prior year.
Provision for Loan Losses. A provision for loan losses is charged to earnings
(while a credit provision for loan losses is accretive to earnings) to maintain
the total allowance at a level considered adequate by management to absorb
potential losses in the portfolio. Management's determination of the adequacy of
the allowance is based on an evaluation of the portfolio considering past
experience, current economic conditions, volume, growth and composition of the
loan portfolio, and other relevant factors.
Provisions for loan losses decreased $7 thousand and $36 thousand for the three
and nine months ended March 31, 2022, respectively, when compared to the same
period in 2021. The decrease in the provision for loan losses for the three and
nine months ended March 31, 2022 was primarily due to decreased reserve factors
related to the COVID-19 pandemic totaling $22 thousand and $63 thousand,
respectively, which were partially offset by changes in average balance of net
loans outstanding, when compared to the same periods in 2021. At March 31, 2022,
the Company's total allowance for loan losses amounted to $513 thousand or 0.67%
of the Company's total loan portfolio, as compared to $565 thousand and 0.70% at
June 30, 2021. At March 31, 2022 and June 30, 2021, the Company had no
non-performing loans or any loans in COVID-19 deferral status.
The Company anticipates continuing to reverse the COVID-19 portion of the
allowance for loan and leases throughout fiscal 2022 assuming continued
favorable trends in the COVID-19 pandemic, which totaled $22 thousand at
March 31, 2022.
33
--------------------------------------------------------------------------------
Table of Contents
Non-Interest Income. For the three and nine months ended March 31, 2022,
non-interest income decreased $56 thousand or 36.8% and increased $5 thousand or
1.40% compared to the same periods in 2021, respectively. For the quarter ended
March 31, 2022, the decrease was attributable to a $56 thousand decrease ingains
on investments, when compared to the same period in 2021. For the nine months
ended March 31, 2022, the increase was attributable to a $13 thousand decrease
in other than temporary impairment losses and an $11 thousand increase in
service charges on deposits, partially offset by a $19 thousand decrease in
gains on investments, when compared to the same period in 2021.
Non-Interest Expense. Non-interest expense decreased $63 thousand or 6.7% and
increased $32 thousand or 1.2% for the three and nine months ended March 31,
2022, when compared to the same period in 2021. The decrease for the three
months ended March 31, 2022, was primarily due to a $10 thousand decrease
inoccupancy and equipment expenses and a $84 thousand decrease in employee
compensation and benefits expense, which were partially offset by a $17 thousand
increase in the federal deposit insurance premium expense and a $12 thousand
increase in the provision for off-balance sheet commitments (primarily unfunded
loan commitments), when compared to the same period of 2021. The increase for
the nine months ended March 31, 2022, was primarily due to a $44 thousand
increase in provision for losses on off balance sheet commitments, $17 thousand
increase in occupancy and equipment expense and a $9 thousand increase in the
federal deposit insurance premium expense, partially offset by a $35 thousand
decrease in salaries and employee benefits, $2 thousand decrease in data
processing expense and a $2 thousand decrease in ATM network expense, when
compared to the same period of 2021.
Income Tax Expense. Income tax expense increased $25 thousand and decreased
$41 thousand for the three and nine months ended March 31, 2022, when compared
to the same periods in 2021, respectively. The increase for the three and the
decrease for the nine months ended March 31, 2022 was primarily due to
fluctuations of taxable income, when compared to the same periods in 2021.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities totaled $1.8 million during the
nine months ended March 31, 2022. Net cash provided by operating activities was
primarily attributable to $939 thousand of Company net income and $941 thousand
of amortization of discounts, premiums and deferred loan fees.
Net cash used for investing activities totaled $23.7 million for the nine months
ended March 31, 2022. Primary uses of funds for investing activities during the
nine months ended March 31, 2022 included purchases of investment securities
available-for-sale totaling $38.7 million, purchases of mortgage-backed
securitiesand loans totaling $79.2 million and $3.7 million, respectively.
Primary sources of funds from investing activities during the nine months ended
March 31, 2022 included proceeds from repayments of investment securities of
$43.6 million, proceeds from early issuer redemptions of investment securities
of $9.1 million,$32.3 million of repayments of mortgage-backed securities,
$5.5 million of proceeds from repayments of held-to-maturity investment
securities, a decrease in loans receivable of $8.2 million.
Funds provided by financing activities totaled $22.7 million for the nine months
ended March 31, 2022. Primary sources of funds from financing activities were
increases in NOW accounts, money market accounts, certificates of deposits
transaction and savings account and FHLB short-term advances of $3.6 million,
$1.1 million, $241 thousand, $235 thousand and $48.7 million,
respectively. Primary uses of funds by financing activities were decreases in
FHLB long-term advances totaling $30.0 million, advance payments by borrowers
for taxes and insurance of $590 thousand, $522 thousand of cash dividends paid
and purchases of treasury stock of $66 thousand.
The decrease in advance payments by borrowers for taxes and insurance were
primarily attributable to seasonal withdrawals for the payment of local real
estate taxes. The increase in certificates of deposit at March 31, 2022 was
due principally to a $1.5 million increase in brokered deposits, which was
partially offset by a$1.3 million decrease in retail time deposits. The
increase in transaction and savings accounts were primarily attributable to
normal calendar year end fluctuations of transaction account balances and
transfers of maturing time deposits into savings accounts due to the small yield
differential in rates paid on time versus savings deposits. Management has
determined that it currently is maintaining adequate liquidity and continues to
match funding sources with lending and investment opportunities.
The Company's primary sources of funds are deposits, amortization, repayments
and maturities of existing loans, mortgage-backed securities and investment
securities, funds from operations, and funds obtained through FHLB advances and
other borrowings. Certificates of deposit scheduled to mature in one year or
less atMarch 31, 2022 totaled $26.5 million.
Historically, the Company used its sources of funds primarily to meet its
ongoing commitments to pay maturing savings certificates and savings
withdrawals, fund loan commitments and maintain a substantial portfolio of
investment securities. The Company's available-for-sale portfolio totaled
$135.3 million at March 31, 2022. In addition, the Company had $350 thousand of
certificates of deposit and $3.3 million of cash and cash equivalents at March
31, 2022. Management believes that the Company currently has adequate liquidity
available to respond to liquidity demands.
34
--------------------------------------------------------------------------------
Table of Contents
On April 25, 2022, the Company's Board of Directors declared a quarterly cash
dividend of $0.10 per share, on the common stock payable on May 19, 2022, to
shareholders of record at the close of business on May 19, 2022. Dividends are
subject to determination and declaration by the Board of Directors, which take
into account the Company's financial condition, statutory and regulatory
restrictions, general economic conditions and other factors. There can be no
assurance that dividends will in fact be paid on the common stock in future
periods or that, if paid, such dividends will not be reduced or eliminated.
As of March 31, 2022, WVS Financial Corp. exceeded all regulatory capital
requirements and maintained Common Equity Tier I Capital, Tier I, and total
risk-based capital equal to $38.4 million or 19.14%, $38.4 million or 19.14%,
and $38.9 million or 19.42%, respectively, of total risk-weighted assets, and
Tier I leverage capital of $38.4 million or 10.58% of average quarterly assets.
Nonperforming assets consist of nonaccrual loans and real estate owned. A loan
is placed on nonaccrual status when, in the judgment of management, the
probability of collection of interest is deemed insufficient to warrant further
accrual. When a loan is placed on nonaccrual status, previously accrued but
uncollected interest is deducted from interest income. The Company normally does
not accrue interest on loans past due 90 days or more, however, interest may be
accrued if management believes that it will collect on the loan.
The Company had no non-performing assets at March 31, 2022 or June 30, 2021.
35
--------------------------------------------------------------------------------
Table of Contents
© Edgar Online, source Glimpses
WVS FINANCIAL CORP. 
