##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549
 FORM 10-Q þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2005.
 o
    
    Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from  to
 Commission File Number
    
    0-24948PVF
Capital Corp.(Exact
name of registrant as specified in its charter)
 Ohio
    
    34-1659805(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)30000 Aurora Road, Solon, Ohio
    
    
    44139(Address of principal executive offices)
    
    (Zip Code)(440) 248-7171(Registrants telephone number, including area code)Not Applicable(Former name, former address and former fiscal year, if changed since last report.)
 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. YES þ                    NO o Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of
the Exchange Act). YES þ                    NO o Indicate the number of shares outstanding of each of the issuers classes of common stock, as of
the latest practicable date. Common Stock, $0.01 Par Value
    
    
    7,027,280(Class)
    
    (Outstanding at April 30, 2005)




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PVF CAPITAL CORP. INDEX PagePart I
    
    Financial InformationItem 1
    
    Financial StatementsConsolidated Statements of Financial Condition, March 31, 2005 (unaudited) and June 30, 2004.
    
    
    1Consolidated Statements of Operations for the three and nine months ended March 31, 2005 and 2004 (unaudited).
    
    
    2Consolidated Statements of Cash Flows for the nine months ended March 31, 2005 and 2004 (unaudited).
    
    
    3Notes to Consolidated Financial Statements (unaudited).
    
    
    4Item 2
    
    Management's Discussion and Analysis of Financial Condition and Results of Operations
    
    
    7Liquidity and Capital Resources
    
    
    13Item 3
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    13Item 4
    
    Controls and Procedures
    
    
    14Part II
    
    Other Information
    
    
    14Exhibit 31.1 Rule 13A-14(A) Certification of CEOExhibit 31.2 Rule 13A-14(A) Certification of CFOExhibit 32




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##### Table of Contents



Part I Financial Information
Item 1 FINANCIAL STATEMENTS 
 PVF CAPITAL CORP.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION March 31,
    
    
    June 30,ASSETS
    
    2005
    
    
    2004unauditedCash and cash equivalents:Cash and amounts due from depository institutions
    
    $
    4,106,988
    
    
    $
    4,550,446Interest bearing deposits
    
    
    1,684,369
    
    
    
    894,327Federal funds sold
    
    
    3,035,000
    
    
    
    12,025,000Total cash and cash equivalents
    
    
    8,826,357
    
    
    
    17,469,773Securities held to maturity
    
    
    57,500,000
    
    
    
    27,500,000Mortgage-backed securities held to maturity
    
    
    33,198,066
    
    
    
    36,779,289Loans receivable held for sale, net
    
    
    11,534,642
    
    
    
    11,870,775Loans receivable, net of allowance of
$4,451,204 and $4,376,704
    
    
    647,066,781
    
    
    
    610,680,821Office properties and equipment, net
    
    
    13,844,785
    
    
    
    13,888,392Real estate owned, net
    
    
    1,322,239
    
    
    
    70,000Federal Home Loan Bank stock
    
    
    11,180,600
    
    
    
    10,825,600Prepaid expenses and other assets
    
    
    27,393,934
    
    
    
    26,602,759Total Assets
    
    $
    811,867,404
    
    
    $
    755,687,409LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesDeposits
    
    $
    542,330,645
    
    
    $
    526,492,714Short-term advances from the Federal Home Loan Bank
    
    $
    53,000,000
    
    
    $
    15,000,000Long-term advances from the Federal Home Loan Bank
    
    
    120,015,905
    
    
    
    120,039,831Notes payable
    
    
    1,423,025
    
    
    
    2,486,250Subordinated debentures
    
    
    10,000,000
    
    
    
    10,000,000Advances from borrowers for taxes and insurance
    
    
    4,773,308
    
    
    
    2,376,872Accrued expenses and other liabilities
    
    
    14,867,400
    
    
    
    15,930,799Total Liabilities
    
    
    746,410,283
    
    
    
    692,326,466Stockholders EquitySerial preferred stock, none issued
    
    
    
    
    
    
    Common stock, $0.01 par value, 15,000,000 shares authorized;
7,430,193 and 7,420,045 shares issued, respectively
    
    
    74,302
    
    
    
    74,200Additional paid-in-capital
    
    
    58,406,980
    
    
    
    58,378,089Retained earnings
    
    
    10,477,403
    
    
    
    8,035,847Treasury Stock, at cost, 403,980 and 377,870 shares, respectively
    
    
    (3,501,564
    )
    
    
    (3,127,193
    )Total Stockholders Equity
    
    
    65,457,121
    
    
    
    63,360,943Total Liabilities and Stockholders Equity
    
    $
    811,867,404
    
    
    $
    755,687,409
 See accompanying notes to consolidated financial statements Page 1




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##### Table of Contents



Part I Financial Information
Item 1 FINANCIAL STATEMENTS 
 PVF CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Interest incomeLoans
    
    $
    9,908,600
    
    
    $
    8,971,243
    
    
    $
    28,874,143
    
    
    $
    27,655,512Mortgage-backed securities
    
    
    393,274
    
    
    
    477,430
    
    
    
    1,221,484
    
    
    
    1,410,528Cash and securities
    
    
    638,764
    
    
    
    127,664
    
    
    
    1,398,250
    
    
    
    398,404Total interest income
    
    
    10,940,638
    
    
    
    9,576,337
    
    
    
    31,493,877
    
    
    
    29,464,444Interest expenseDeposits
    
    
    3,365,977
    
    
    
    2,756,733
    
    
    
    9,337,067
    
    
    
    8,406,921Borrowings
    
    
    1,737,134
    
    
    
    1,339,912
    
    
    
    4,926,786
    
    
    
    4,078,317Total interest expense
    
    
    5,103,111
    
    
    
    4,096,645
    
    
    
    14,263,853
    
    
    
    12,485,238Net interest income
    
    
    5,837,527
    
    
    
    5,479,692
    
    
    
    17,230,024
    
    
    
    16,979,206Provision for loan losses
    
    
    75,000
    
    
    
    140,300
    
    
    
    211,000
    
    
    
    432,300Net interest income after provision for loan losses
    
    
    5,762,527
    
    
    
    5,339,392
    
    
    
    17,019,024
    
    
    
    16,546,906Noninterest income, netService and other fees
    
    
    216,527
    
    
    
    132,458
    
    
    
    584,511
    
    
    
    436,668Mortgage banking activities, net
    
    
    210,688
    
    
    
    638,512
    
    
    
    873,983
    
    
    
    3,916,466Other, net
    
    
    512,125
    
    
    
    65,963
    
    
    
    1,025,293
    
    
    
    662,932Total noninterest income, net
    
    
    939,340
    
    
    
    836,933
    
    
    
    2,483,787
    
    
    
    5,016,066Noninterest expenseCompensation and benefits
    
    
    2,797,166
    
    
    
    2,393,752
    
    
    
    7,854,766
    
    
    
    7,246,651Office occupancy and equipment
    
    
    850,192
    
    
    
    845,902
    
    
    
    2,585,674
    
    
    
    2,450,307Other
    
    
    1,139,124
    
    
    
    1,185,288
    
    
    
    3,247,434
    
    
    
    3,627,711Total noninterest expense
    
    
    4,786,482
    
    
    
    4,424,942
    
    
    
    13,687,874
    
    
    
    13,324,669Income before federal income tax provision
    
    
    1,915,385
    
    
    
    1,751,383
    
    
    
    5,814,937
    
    
    
    8,238,303Federal income tax provision
    
    
    602,526
    
    
    
    565,649
    
    
    
    1,812,426
    
    
    
    2,770,749Net income
    
    $
    1,312,859
    
    
    $
    1,185,734
    
    
    $
    4,002,511
    
    
    $
    5,467,554Basic earnings per share
    
    $
    0.19
    
    
    $
    0.17
    
    
    $
    0.57
    
    
    $
    0.78Diluted earnings per share
    
    $
    0.18
    
    
    $
    0.16
    
    
    $
    0.56
    
    
    $
    0.76Dividends declared per common share
    
    $
    0.074
    
    
    $
    0.067
    
    
    $
    0.222
    
    
    $
    0.269
 See accompanying notes to consolidated financial statements Page 2




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##### Table of Contents



Part I Financial Information
Item 1 FINANCIAL STATEMENTS 
 PVF CAPITAL CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) Nine Months EndedMarch 31,2005
    
    
    2004Operating ActivitiesNet income
    
    $
    4,002,511
    
    
    $
    5,467,554Adjustments to reconcile net income to net cash provided by (used in) operating activitiesDepreciation
    
    
    1,370,459
    
    
    
    1,219,509Provision for losses on loans
    
    
    211,000
    
    
    
    432,300Accretion of deferred loan origination fees, net
    
    
    (657,556
    )
    
    
    (844,866
    )Gain on sale of loans receivable held for sale, net
    
    
    (891,474
    )
    
    
    (4,362,111
    )Mortgage banking provision
    
    
    182,000
    
    
    
    0Gain on disposal of real estate owned, net
    
    
    (165,575
    )
    
    
    (488,839
    )Federal Home Loan Bank stock dividends
    
    
    (355,000
    )
    
    
    (316,059
    )Change in accrued interest on investments, loans, and borrowings, net
    
    
    (303,990
    )
    
    
    (23,194
    )Origination of loans receivable held for sale, net
    
    
    (93,271,903
    )
    
    
    (220,892,440
    )Sale of loans receivable held for sale, net
    
    
    93,332,237
    
    
    
    246,458,057Net change in other assets and other liabilities
    
    
    1,784,825
    
    
    
    (13,595,176
    )Net cash from operating activities
    
    
    5,237,534
    
    
    
    13,054,735Investing ActivitiesLoan repayments and originations, net
    
    
    (38,255,915
    )
    
    
    (17,851,940
    )Repayment of mortgage-backed securities
    
    
    4,633,633
    
    
    
    3,501,125Purchase of mortgage-backed securities held to maturity
    
    
    (1,052,410
    )
    
    
    (39,853,303
    )Proceeds from sale of real estate owned
    
    
    1,229,847
    
    
    
    937,704Purchases of securities held to maturity
    
    
    (35,000,000
    )
    
    
    (10,001,930
    )Maturities of securities held to maturity
    
    
    5,000,000
    
    
    
    33,252Additions to office properties and equipment, net
    
    
    (1,326,852
    )
    
    
    (3,246,272
    )Acquisition of bank-owned life insurance
    
    
    0
    
    
    
    (15,000,000
    )Net cash used in investing activities
    
    
    (64,771,697
    )
    
    
    (81,481,364
    )Financing activitiesNet decrease in demand deposits, NOW, and passbook savings
    
    
    (1,328,961
    )
    
    
    (7,142,093
    )Net increase in time deposits
    
    
    17,166,892
    
    
    
    17,432,874Repayment of long-term Federal Home Loan Bank advances
    
    
    (23,926
    )
    
    
    (78,034
    )Net increase in short-term Federal Home Loan Bank advances
    
    
    38,000,000
    
    
    
    0Net decrease in notes payable
    
    
    (1,063,225
    )
    
    
    (3,308,365
    )Purchase of treasury stock
    
    
    (374,371
    )
    
    
    0Proceeds from exercise of stock options
    
    
    28,993
    
    
    
    51,543Cash dividend paid
    
    
    (1,514,655
    )
    
    
    (1,368,468
    )Net cash from financing activities
    
    
    50,890,747
    
    
    
    5,587,457Net increase (decrease) in cash and cash equivalents
    
    
    (8,643,416
    )
    
    
    (62,839,172
    )Cash and cash equivalents at beginning of period
    
    
    17,469,773
    
    
    
    96,751,243Cash and cash equivalents at end of period
    
    $
    8,826,357
    
    
    $
    33,912,071Supplemental disclosures of cash flow information:Cash payments of interest expense
    
    $
    14,166,657
    
    
    $
    12,489,008Cash payments of income taxes
    
    $
    1,455,000
    
    
    $
    2,385,000Transfer to real estate owned
    
    $
    2,316,511
    
    
    $
    270,000
 See accompanying notes to consolidated financial statements Page 3




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##### Table of Contents



Part I Financial Information
Item 1 PVF CAPITAL CORP. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2005 and 2004
(Unaudited) 1. The accompanying consolidated interim financial statements were prepared in accordance with
regulations of the Securities and Exchange Commission for Form 10-Q. All information in the
consolidated interim financial statements is unaudited except for the June 30, 2004 consolidated
statement of financial condition, which was derived from the Corporations audited financial
statements. Certain information required for a complete presentation in accordance with accounting
principles generally accepted in the United States of America has been condensed or omitted.
However, in the opinion of management, these interim financial statements contain all adjustments,
consisting only of normal recurring accruals, necessary to fairly present the interim financial
information. The results of operations for the three and nine months ended March 31, 2005 are not
necessarily indicative of the results to be expected for the entire year ending June 30, 2005. The
results of operations for PVF Capital Corp. (PVF or the Company) for the periods being reported
have been derived primarily from the results of operation of Park View Federal Savings Bank (the
Bank). PVF Capital Corp.s common stock is traded on the NASDAQ SMALL-CAP ISSUES under the symbol
PVFC. Stock Compensation: Employee compensation expense under stock options is reported using the
intrinsic valuation method. No stock-based
compensation cost is reflected in net income,
as all options granted had an exercise price equal to or greater than the market price of the
underlying common stock at the date of grant. The following table illustrates the effect on net
income and earnings per share if expense was measured using the fair value recognition provisions
of FASB Statement No. 123, Accounting for Stock Based Compensation. Three months ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Net Income as reported
    
    $
    1,312,859
    
    
    $
    1,185,734
    
    
    $
    4,002,511
    
    
    $
    5,467,554Less: Pro forma compensation
expense, net of tax
    
    $
    36,210
    
    
    $
    25,034
    
    
    $
    100,407
    
    
    $
    74,547Pro forma net income
    
    $
    1,276,649
    
    
    $
    1,160,700
    
    
    $
    3,902,104
    
    
    $
    5,393,007Basic earnings per share
    
    $
    0.19
    
    
    $
    0.17
    
    
    $
    0.57
    
    
    $
    0.78Pro forma basic earnings per share
    
    $
    0.18
    
    
    $
    0.17
    
    
    $
    0.56
    
    
    $
    0.77Diluted earnings per share
    
    $
    0.18
    
    
    $
    0.16
    
    
    $
    0.56
    
    
    $
    0.76Pro forma diluted earnings per share
    
    $
    0.18
    
    
    $
    0.16
    
    
    $
    0.54
    
    
    $
    0.75
 Page 4




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##### Table of Contents



Part I Financial Information
Item 1 The pro forma effects are computed using option pricing models, using the following
weighted-average assumptions as of grant date for options awarded in fiscal year 2005 and 2004. Nine monthsendedMarch 31,2005
    
    
    2004Risk-free interest rate
    
    
    3.75
    %
    
    
    3.76
    %Expected option life
    
    7 years
    
    7 yearsExpected stock price volatility
    
    
    29.29
    %
    
    
    29.78
    %Dividend yield
    
    
    2.21
    %
    
    
    1.99
    %Weighted average fair value
    
    $
    3.93
    
    
    $
    4.06
 2. The following table discloses Earnings Per Share for the three and nine months ended March
31, 2005 and March 31, 2004. Three months ended March 31,2005
    
    
    2004Income
    
    
    Shares
    
    
    Per Share
    
    
    Income
    
    
    Shares
    
    
    Per Share(Numerator)
    
    
    (Denominator)
    
    
    Amount
    
    
    (Numerator)
    
    
    (Denominator)
    
    
    AmountBasic EPS
Net Income
    
    $
    1,312,859
    
    
    
    7,029,088
    
    
    $
    0.19
    
    
    $
    1,185,734
    
    
    
    7,025,025
    
    
    $
    0.17Effect of Stock
Options
    
    
    
    
    
    
    149,118
    
    
    
    0.01
    
    
    
    
    
    
    
    178,008
    
    
    
    0.01Diluted EPS
Net Income
    
    $
    1,312,859
    
    
    
    7,178,206
    
    
    $
    0.18
    
    
    $
    1,185,734
    
    
    
    7,203,033
    
    
    $
    0.16
 Nine months ended March 31,2005
    
    
    2004Income
    
    
    Shares
    
    
    Per Share
    
    
    Income
    
    
    Shares
    
    
    Per Share(Numerator)
    
    
    (Denominator)
    
    
    Amount
    
    
    (Numerator)
    
    
    (Denominator)
    
    
    AmountBasic EPS
Net Income
    
    $
    4,002,511
    
    
    
    7,033,325
    
    
    $
    0.57
    
    
    $
    5,467,554
    
    
    
    7,018,396
    
    
    $
    0.78Effect of Stock
Options
    
    
    
    
    
    
    161,889
    
    
    
    0.01
    
    
    
    
    
    
    
    173,140
    
    
    
    0.02Diluted EPS
Net Income
    
    $
    4,002,511
    
    
    
    7,195,214
    
    
    $
    0.56
    
    
    $
    5,467,554
    
    
    
    7,191,536
    
    
    $
    0.76
 There were 81,760 and 7,000 options not considered in the diluted Earnings Per Share
calculation for the three- and nine-month periods ended March 31, 2005 and 7,700 in options not considered in the diluted
earnings calculation for the three- and nine-month period ending March 31, 2004, respectively,
because they were anti-dilutive. Page 5




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##### Table of Contents



Part I Financial Information
Item 1 3. Mortgage Banking Activities: The Company services real estate loans for investors that
are not included in the accompanying condensed consolidated financial statements. Mortgage
servicing rights are established based on the allocated fair value of servicing rights retained on
loans originated by the Bank and subsequently sold in the secondary market. Mortgage servicing
rights are included in the consolidated statements of financial condition under the caption
Prepaid expenses and other assets. 2005
    
    
    2004Servicing rights:Beginning of period
    
    $
    5,358,845
    
    
    $
    4,655,182Additions
    
    
    985,273
    
    
    
    3,063,299Amortized to expense
    
    
    (1,256,840
    )
    
    
    (2,420,329
    )End of period
    
    $
    5,087,278
    
    
    $
    5,298,152Valuation allowance:Beginning of period
    
    $
    0
    
    
    $
    670,000Reductions credited to expense
    
    
    0
    
    
    
    (670,000
    )End of period
    
    $
    0
    
    
    $
    0
 Mortgage banking activities, net consist of the following: Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Mortgage loan servicing fees
    
    $
    488,379
    
    
    $
    449,807
    
    
    $
    1,421,349
    
    
    $
    1,304,684Amortization and impairment of
mortgage loan servicing fees
    
    $
    (387,095
    )
    
    $
    (457,117
    )
    
    $
    (1,256,840
    )
    
    $
    (1,750,329
    )Gain on sales of loans
    
    $
    109,404
    
    
    $
    645,822
    
    
    $
    709,474
    
    
    $
    4,362,111Mortgage banking activities, net
    
    $
    210,688
    
    
    $
    638,512
    
    
    $
    873,983
    
    
    $
    3,916,466
 Page 6




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##### Table of Contents



Part I Financial Information
Item 2 
 MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following analysis discusses changes in financial condition and results of operations at and
for the three-month and nine-month periods ended March 31, 2005 for PVF Capital Corp. (PVF or the
Company), Park View Federal Savings Bank (the Bank), its principal and wholly-owned subsidiary,
PVF Service Corporation (PVFSC), a wholly-owned real estate subsidiary, Mid Pines Land Co., a
wholly-owned real estate subsidiary, and PVF Holdings, Inc., PVF Community Development, and PVF
Mortgage Corporation, three wholly-owned and currently inactive subsidiaries. FORWARD-LOOKING STATEMENTS When used in this Form 10-Q, the words or phrases will likely result, are expected to, will
continue, is anticipated, estimate, project, or similar expressions are intended to identify
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such statements are subject to certain risks and uncertainties including changes in economic
conditions in the Companys market area, changes in policies by regulatory agencies, fluctuations
in interest rates, demand for loans in the Companys market area, and competition that could cause
actual results to differ materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. The Company wishes to advise
readers that the factors listed above could affect the Companys financial performance and could
cause the Companys actual results for future periods to differ materially from any opinions or
statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the
results of any revisions, which may be made to any forward-looking statements to reflect events or
circumstances after the
date of such statements or to reflect the occurrence of anticipated or unanticipated events. FINANCIAL CONDITION Consolidated assets of PVF were $811.9 million as of March 31, 2005, an increase of approximately
$56.2 million, or 7.4%, as compared to June 30, 2004. The Bank remained in regulatory capital
compliance for tier one core capital, tier one risk-based capital, and total risk-based capital
with capital levels of 8.86%, 10.50% and 11.10%, respectively at March 31, 2005. During the nine months ended March 31, 2005, the Companys cash and cash equivalents, which consist
of cash, interest-bearing deposits and federal funds sold, decreased $8.6 million, or 49.5%, as
compared to June 30, 2004. The change in the Companys cash and cash equivalents consisted of
decreases in interest-bearing deposits and federal funds sold of $8.2 million and a decrease in
cash of $0.4 million. Page 7




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Part I Financial Information
Item 2 FINANCIAL CONDITION continued The net $32.5 million, or 4.9%, increase in loans receivable, loans receivable held for sale and
mortgage-backed securities during the nine months ended March 31, 2005, resulted from an increase
in loans receivable of $36.4 million and decreases of $3.6 million and $0.3 million in
mortgage-backed securities and loans receivable held for sale, respectively. The increase of $36.4
million in loans receivable included increases of $14.6 million in single-family mortgage loans,
$15.3 million in construction loans, $12.3 million in home equity line of credit loans, $8.9
million in land loans and $1.7 million in non-real estate loans. These increases were offset by
decreases of $7.3 million in commercial line of credit loans, $6.2 million in commercial real
estate loans and $2.9 million in multi-family loans. The decrease of $3.6 million in
mortgage-backed securities resulted from the purchase of $1.0 million in mortgage-backed securities
less payments received of $4.6 million. Securities increased by $30.0 million as a result of the purchase of $35.0 million in Federal Home
Loan Bank agency securities and the maturity of $5.0 million in agency securities. The increase in
real estate owned of $1.3 million resulted from the Companys acquisition of one single-family and
one commercial real estate property during the period. Managements decision to attract new certificates of deposit by offering competitive market rates
resulted in an increase of $15.8 million, or 3.0%, in deposits. Advances increased by $38.0
million, or 28.1%, as a result of short-term borrowings from the Federal Home Loan Bank of
Cincinnati. The decrease in notes payable of $1.1 million, or 42.8%, is the result of principal
payments made on notes payable. The increase in advances from borrowers for taxes and insurance of
$2.4 million is attributable to timing differences between the collection and payment of taxes and
insurance. The decrease in accrued expenses and other liabilities of $1.1 million, or 6.7%, is
primarily the result of timing differences between the collection and remittance of payments
received on loans serviced for investors. The decrease in cash and cash equivalents of $8.6 million, proceeds from the increase in deposits
of $15.8 million, the increase in advances of $38.0 million, the increase in advances from
borrowers for tax and insurance of $2.4 million, the maturity of $5.0 million in securities, and
earnings of $4.0 million were used to fund the net increase of $32.5 million in loans receivable,
loans receivable held for sale, and mortgage-backed securities, purchase $35.0 million in
securities, purchase FHLB stock of $0.4 million, repay $1.1 million in notes payable, pay cash
dividends of $1.5 million, purchase treasury stock of $0.4 million, and fund the decrease in
accrued expenses and other liabilities of $1.1 million, and the increases in real estate owned of
$1.3 million and prepaid expenses and other assets of $0.8 million. RESULTS OF OPERATIONS
    
    Three months ended March 31, 2005,compared to three months endedMarch 31, 2004.
 PVFs net income is dependent primarily on its net interest income, which is the difference between
interest earned on its loans and investments and Page 8




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Part I Financial Information
Item 2 RESULTS OF OPERATIONS continued interest paid on interest-bearing liabilities. Net interest income is determined by (i) the
difference between yields earned on interest-earning assets and rates paid on interest-bearing
liabilities (interest-rate spread) and (ii) the relative amounts of interest-earning assets and
interest-bearing liabilities. The Companys interest-rate spread is affected by regulatory,
economic and competitive factors that influence interest rates, loan demand and deposit flows. Net
interest income also includes amortization of loan origination fees, net of origination costs. PVFs net income is also affected by the generation of non-interest income, which primarily
consists of loan servicing income, service fees on deposit accounts, and gains on the sale of loans
held for sale. In addition, net income is affected by the level of operating expenses and loan loss
provisions. The Companys net income for the three months ended March 31, 2005 was $1,312,900 as compared to
$1,185,800 for the prior year comparable period. This represents an increase of $127,100, or 10.7%,
when compared with the prior year comparable period. Net interest income for the three months ended March 31, 2005 increased by $357,800, or 6.5%, as
compared to the prior year comparable period. This resulted from an increase of $1,364,300, or
14.2%, in interest income offset by an increase of $1,006,500, or 24.6%, in interest expense. The
increase in interest income resulted primarily from an increase of $87.7 million in the average
balance of interest-earning assets in the current period. The increase in the average balance of
interest-earning assets along with an increase of 9 basis points in the return on interest-earning
assets resulted in an overall increase to interest income of $1,364,300 in the current period. The
average balance on interest-bearing liabilities increased by $88.2 million, while the average cost
of funds on interest-bearing liabilities increased by 22 basis points in the current period. This
resulted in an overall increase in interest expense of $1,006,500. The Companys net interest
income increased by $357,800 due to an increase in the average balances of both interest-earning
assets and interest-bearing liabilities offset partially by a decrease of 13 basis points in the
Companys interest-rate spread during the current period as compared to the prior year comparable
period. For the three months ended March 31, 2005, a provision for loan losses of $75,000 was recorded,
while a provision for loan losses of $140,300 was recorded in the prior year comparable period. The
Company uses a systematic approach to determine the adequacy of its loan loss allowance and the
necessary provision for loan losses. The loan portfolio is reviewed and delinquent loan accounts
are analyzed individually on a monthly basis with respect to payment history, ability to repay,
probability of repayment, and loan-to-value percentage. Consideration is given to the types of
loans in the portfolio and the overall risk inherent in the portfolio. After reviewing current
economic conditions, changes to the size and composition of the loan portfolio, changes in
delinquency status, levels of non-accruing loans, non-performing assets, and actual loan losses
incurred by the Company, management establishes an appropriate Page 9




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Part I Financial Information
Item 2 RESULTS OF OPERARTIONS continued reserve percentage applicable to each category of loans, and a provision for loan losses is
recorded when necessary to bring the allowance to a level consistent with this analysis. Management
believes it uses the best information available to make a determination as to the adequacy of the
allowance for loan losses. During the three months ended March 31, 2005, the Company experienced an increase in loans held for
investment of $5.8 million, increases in the level of non-accruing loans and classified assets of
$0.5 million and $1.1 million, respectively, and had $15,000 in loans charged off. Due to the
increase in loans held for investment and increases in non-accruing loans and classified assets,
along with loans charged off during the period, management determined it was necessary to record a
provision for loan losses of $75,000 in the current period. During the three months ended March 31,
2004, the Company experienced an increase in loans held for investment of $1.4 million, increases
in the level of non-accruing loans and classified assets of $1.5 million each, and had $108,000 in
loans charged off. Due to an increase in loans held for investment and increases in non-accruing
loans and classified assets, along with loans charged off during the period, management determined
it was necessary to record a provision for loan losses of $140,300 in the prior period. At June 30,
2004, the allowance for loan losses was $4.4 million, which represented 41.2% of non-accruing loans
and 0.71% of net loans. At March 31, 2005, the allowance for loan losses was $4.5 million, which
represented 39.4% of non-performing loans and 0.68% of net loans. March 31,
    
    
    June 30,2005
    
    
    2004(Dollars in thousands)Non-accruing loans (1):Real estate
    
    $
    11,289
    
    
    $
    10,633Accruing loans which are contractually
past due 90 days or more:Real estate
    
    $
    0
    
    
    $
    503Total non-accrual and 90 days
past due loans
    
    $
    11,289
    
    
    $
    11,136Ratio of non-performing loans to total loans
and mortgage-backed securities
    
    
    1.63
    %
    
    
    1.80
    %Other non-performing assets (2)
    
    $
    1,322
    
    
    $
    70Total non-performing assets
    
    $
    12,611
    
    
    $
    11,206Total non-performing assets to total assets
    
    
    1.55
    %
    
    
    1.48
    %
  (1)
    Non-accrual status denotes loans on which, in the opinion of management, the collection of
additional interest is unlikely, or loans that meet the non-accrual criteria established by
regulatory authorities. Non-accrual loans include all loans classified as doubtful or loss,
loans in foreclosure, and all loans greater than 90 days past due. Payments received on a
non-accrual loan are either applied to the outstanding principal balance or recorded as
interest income, depending on an assessment of the collectibility of the principal balance of
the loan.(2)
    Other non-performing assets represent property acquired by the Bank through foreclosure or
repossession. Page 10




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Part I Financial Information
Item 2 RESULTS OF OPERATIONS continued For the three months ended March 31,
    2005, non-interest income increased by $102,400, or 12.2%, from the prior
    year comparable period. This resulted primarily from an increase to other,
    net of $446,200 primarily due to profit on real estate activity and income
    recognized on the investment in BOLI in the current period. In addition, service
    and other fees increased by $84,100, or 63.5%, in the current period, primarily
    due to increases in savings account fee income and loan prepayment penalties. These increases were offset by a decrease of $427,800, or 67.0%, in mortgage-banking activities
that resulted from a decrease of $354,400 in profit on loan sales in addition to a mortgage banking
provision of $182,000. These amounts were partially offset by an increase of $108,600 in loan
servicing income in the current period. The increase in loan servicing income is attributable to an
increase in the volume of loans serviced for others along with a slowdown in the amortization of
mortgage loan servicing rights that resulted from increasing market interest rates and decreased
prepayment speed on loans serviced for others. During these periods, PVF pursued a strategy of
originating long-term, fixed-rate loans pursuant to Federal Home Loan Mortgage Corporation
(FHLMC) and Federal National Mortgage Association (FNMA) guidelines and selling such loans to
the FHLMC or the FNMA, while retaining the servicing. The origination of these types of loans has
slowed in current periods. Non-interest expense for the three months ended March 31, 2005 increased by $361,500, or 8.2%, from
the prior year comparable period. This was primarily the result of an increase in compensation and
benefits of $403,400, or 16.9%, as the result of increased staffing, incentive bonuses paid, and
salary and wage adjustments. The decrease of $46,200, or 3.9%, in other non-interest expense was
attributable to decreases in telephone line costs, outside services and stationery, printing and
supplies in the current period. The federal income tax provision for the three-month period ended March 31, 2005 decreased to an
effective rate of 31.5% for the current period from an effective rate of 32.3% for the prior year
comparable period. The effective tax rate was lower for the period ended March 31, 2005 due to
tax-exempt income earned on BOLI. RESULTS OF OPERATIONS
    
    Nine months ended March 31,
2005, compared to nine months ended March 31, 2004.
 The Companys net income for the nine months ended March 31, 2005 was $4,002,500 as compared to
$5,467,600 for the prior year comparable period. This represents a decrease of $1,465,100, or
26.8%, when compared with the prior year comparable period. Net interest income for the nine months ended March 31, 2005 increased by $250,800, or 1.5%, as
compared to the prior year comparable period. This resulted from an increase of $2,029,400, or
6.9%, in interest income offset by an increase of $1,778,600, or 14.2%, in interest expense. The
increase in interest income resulted primarily from an increase of $65.1 million in the average
balance of interest-earning assets in the current period. This increase in average balance was
partially offset by a decrease of 7 basis Page 11




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Part I Financial Information
Item 2 RESULTS OF OPERATIONS continued points in the return on interest-earning assets and
resulted in an overall
increase to interest income of $2,029,400 in the current period. The average balance on
interest-bearing liabilities increased by $75.6 million, while the average cost of funds on
interest-bearing liabilities increased by 2 basis points in the current period. This resulted in an
overall increase in interest expense of $1,778,600. The Companys net interest income increased by
$250,800 due to an increase in the average balances of both interest-earning assets and
interest-bearing liabilities offset partially by a decrease of 9 basis points in the Companys
interest-rate spread during the current period as compared to the prior year comparable period. For the nine months ended March 31, 2005, a provision for loan losses of $211,000 was recorded,
while a provision for loan losses of $432,300 was recorded in the prior year comparable period. During the nine months ended March 31, 2005, the Company experienced an increase in loans held for
investment of $36.4 million, an increase in the level of non-accruing loans of $0.7 million, a
decrease in classified assets of $0.4 million, and had $137,000 in loans charged off. Due to
increases in loans held for investment, non-accruing loans and loans charged off during the period,
management determined it was necessary to record a provision for loan losses of $211,000 in the
current period. During the nine months ended March 31, 2004, the Company experienced an increase in
loans held for investment of $18.5 million, an increase in the level of non-accruing loans of $2.9
million, an increase in classified assets of $1.3 million, and had $132,000 in loans charged off.
Due to increases in loans held for investment, non-accruing loans and classified assets, along with
loans charged off during the period, management determined it was necessary to record a provision
for loan losses of $432,300 in the prior period. For the nine months ended March 31, 2005, non-interest income decreased by $2,532,300, or 50.5%,
from the prior year comparable period. This resulted primarily from a decrease of $3,042,500, or
77.7%, in mortgage-banking activities that resulted from a decrease of $3,470,600 in profit on loan
sales in addition to a mortgage banking provision of $182,000. These amounts were partially offset
by an increase of $610,100 in loan servicing income in the current period. The increase in loan
servicing income is attributable to an increase in the volume of loans serviced for others along
with a slowdown in the amortization of mortgage loan servicing rights that resulted from increasing
market interest rates and decreased prepayment speed on loans serviced for others. In addition, other non-interest income, net, increased by $362,400 in the current period primarily
due to profit on real estate activity and income recognized on the investment in BOLI in the
current period. Service and other fees increased by $147,800, or 33.9%, primarily due to increases
in savings account fee income and loan prepayment penalties. Non-interest expense for the nine months ended March 31, 2005 increased by $363,200, or 2.7%, from
the prior year comparable period. This was primarily the result of an increase in compensation and
benefits of $608,100, or 8.4%, as the result of increased staffing, incentive bonuses paid, and
salary and wage adjustments. Office occupancy and equipment increased $135,400, or 5.5%, due to the
operation of one additional branch office along with Page 12




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Part I Financial Information
Item 2 RESULTS OF OPERATIONS continued increases in office rental expenses. The
decrease of $380,300, or 10.5%, in other non-interest expense was attributable to decreases in
telephone line
costs, outside services, advertising and stationery, printing and supplies in the current period. The federal income tax provision for the nine-month period ended March 31, 2005 decreased to an
effective rate of 31.2% for the current period from an effective rate of 33.6% for the prior year
comparable period. The effective tax rate was lower for the period ended March 31, 2005 due to
tax-exempt income earned on BOLI. 
 LIQUIDITY AND CAPITAL RESOURCES The Companys liquidity measures its ability to generate adequate amounts of funds to meet its cash
needs. Adequate liquidity guarantees that sufficient funds are available to meet deposit
withdrawals, fund loan commitments, purchase securities, maintain adequate reserve requirements,
pay operating expenses, provide funds for debt service, pay dividends to stockholders and meet
other general commitments in a cost-effective manner. Our primary source of funds are deposits,
principal and interest payments on loans, proceeds from the sale of loans, and advances from the
Federal Home Loan Bank of Cincinnati (FHLB). While maturities and scheduled amortization of loans
are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by
general interest rates, economic conditions and local competition. Our most liquid assets are cash and cash equivalents. The levels of these assets are dependent on
our operating, financing, lending and investing activities during any given period. Additional
sources of funds include lines of credit available from the FHLB. Management believes the Company maintains sufficient liquidity to meet current operational needs. Part I Financial Information
Item 3 
 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK There have been no significant changes to the Companys interest rate risk position or any changes
to how the Company manages its Asset/Liability position since June 30, 2004. This is attributable
to the Companys Asset/Liability Management policy of monitoring and matching the maturity and
re-pricing characteristics of its interest-earning assets and interest-bearing liabilities, while
remaining short-term with the weighted-average maturity and re-pricing periods. Page 13




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Part I Financial Information
Item 4 
 CONTROLS AND PROCEDURES As of the end of the period covered
    by this report, management of the Company carried out an evaluation, under
    the supervision and with the participation of the Companys principal
    executive officer and principal financial officer, of the effectiveness of
    the Companys disclosure controls and procedures. Based on this evaluation,
    the Companys principal executive officer and principal financial officer
    concluded that the Companys disclosure controls and procedures are effective
    in ensuring that information required to be disclosed by the Company in reports
    that it files or submits under the Securities Exchange Act of 1934, as amended,
    is recorded, processed, summarized and reported, within the time periods specified
    in the Securities and Exchange Commissions rules and forms. It should
    be noted that the design of the Companys disclosure controls and procedures
    is based in part upon certain reasonable assumptions about the likelihood
    of future events, and there can be no reasonable assurance that any design
    of disclosure controls and procedures will succeed in achieving its stated
    goals under all potential future conditions, regardless of how remote, but
    the Companys principal executive and financial officers have concluded
    that the Companys disclosure controls and procedures are, in fact, effective
    at a reasonable assurance level. There have been no changes in the Companys internal control over financial reporting (to the
extent that elements of internal control over financial reporting are subsumed within disclosure
controls and procedures) identified in connection with the evaluation described in the above
paragraph that occurred during the Companys last fiscal quarter, that has materially affected, or
is reasonably likely to materially affect, the Companys internal control over financial reporting. 
 Part II Other Information  Item 1. Legal Proceedings. N/AItem 2. Unregistered sale of Equity Securities and Use of Proceeds. (a)
      N/A(b)
      N/A(c)
      The following table illustrates the repurchase of the Companys
        common stock during the period ended March 31, 2005: (c) Total Number of
    
    
    
    (d) Maximum NumberShares Purchased as
    
    
    
    of Shares that MayPart of Publicly
    
    
    
    Yet Be Purchased(a) Total Number of
    
    
    
    (b) Average Price
    
    
    Announced Plans or
    
    
    
    Under the Plans orPeriod
    
    
    Shares Purchased
    
    
    
    Paid per Share
    
    
    Programs
    
    
    
    ProgramsJanuary 1 through
January 31, 2005
    
    
    
    3,500
    
    
    
    $13.30
    
    
    
    3,500
    
    
    
    
    271,227February 1 through
February 28, 2005
    
    
    
    4,000
    
    
    
    $13.41
    
    
    
    4,000
    
    
    
    
    267,227March 1 through
March 31,2005
    
    
    
    0
    
    
    
    $0.00
    
    
    
    0
    
    
    
    
    267,227Total
    
    
    
    7,500
    
    
    
    $13.36
    
    
    
    7,500
 Page 14




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Part II Other Information continued
Item 2 In August 2002, the Company announced a stock repurchase program to acquire up to 5% of the
Companys common stock. This plan was renewed for an additional year in August 2003 and 2004. The
plan is renewable on an annual basis and will expire in August 2005, if not renewed.  Item 3. Defaults Upon Senior Securities. N/AItem 4. Submission of Matters to a Vote of Security Holders. N/AItem 5. Other Information. N/AItem 6. (a) Exhibits The following exhibits are filed herewith:31.1
      Rule 13a-14(a) Certification of Chief Executive Officer31.2
      Rule 13a-14(a) Certification of Chief Financial Officer32
      Section 1350 Certification Page 15




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Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant had duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized. PVF Capital Corp.(Registrant)Date:
            May 6, 2005
        
        /s/ C. Keith SwaneyC. Keith SwaneyPresident, Chief OperatingOfficer and Treasurer(Only authorized officer andPrincipal Financial Officer)