PVF Capital (PVFC) posted its first profitable quarter in four years as the Solon, Ohio, company benefited from a surge in mortgage lending activity and continued improvement in asset quality.
The $806 million-asset of Park View Federal Savings Bank said Monday that it earned $400,000 in its fiscal-year third quarter that ended March 31, compared to losses of $2.8 million the same quarter last year and $1.8 million in the prior quarter.
The results were fueled largely by a 291% jump in noninterest income, to $3.3 million, that resulted from high demand for mortgage loans. Net interest income, meanwhile, climbed 25% year over year thanks primarily to a 240% increase in income from securities investments and a 38% drop in its interest expense.
The company is under orders from regulators to reduce its level of classified assets as a ratio of core capital and it made strong progress on that front. PVF said that the ratio fell to 55.9% at the end of March, down from 69.7% a year earlier though still higher than the 50% ratio required by regulators. PVF has now reduced its overall level of problem loans in 10 straight quarters.
PVF’s shares were trading at $2.30 midday Monday, up 2.2%.