PVF Capital Corp. in Solon, Ohio, has retired a five-year-old debt that will save the company $2.5 million a year.
PVF said a $50 million repurchase agreement, which its thrift entered into in 2006, had matured. PVF said the agreement had a 4.99% interest rate and was settled with portion of the thrift's short-term cash. The settlement was announced Thursday.
"For a company our size, that's material," Robert J. King, Jr., PVF's president and chief executive, said in an interview Friday.
The settlement is also expected to shrink assets, which totaled $830.6 million at Dec. 31, by 6% and add 50 basis points to the thrift's leverage ratio, which totaled 8.84% at yearend.
PVF raised $30 million in April 2010 to combat high nonperforming assets.
