##### 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 December 31, 2008.
 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 0-24948
 PVF Capital Corp.
  Ohio
    
    34-1659805(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)30000 Aurora Road, Solon, Ohio
    
    44139(Address of principal executive offices)
    
    (Zip Code)
 
 
  þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company
þ(Do not check if a smaller reporting company)
  o þ
  Common Stock, $0.01 Par Value
    
    7,773,823(Class)
    
    (Outstanding at February 6, 2009)




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##### 



PVF CAPITAL CORP.
  PagePart I Financial InformationItem 1 Financial StatementsConsolidated Statements of Financial Condition, December 31, 2008 (unaudited) and June 30, 2008.
    
    
    1Consolidated Statements of Operations for the three months and six months ended December 31, 2008 and 2007 (unaudited).
    
    
    2Consolidated Statements of Cash Flows for the six months ended December 31, 2008 and 2007 (unaudited).
    
    
    3Notes to Consolidated Financial Statements (unaudited).
    
    
    4Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    13Liquidity and Capital Resources
    
    
    23Item 3 Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4 Controls and Procedures
    
    
    25Part II Other Information
    
    
    25EX-10.1EX-10.2EX-10.3EX-31.1EX-31.2EX-32




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##### Table of Contents



PVF CAPITAL CORP.
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 December 31,2008
    
    
    June 30,unaudited
    
    
    2008ASSETSCash and cash equivalents:Cash and amounts due from depository institutions
    
    $
    15,962,680
    
    
    $
    7,455,720Interest bearing deposits
    
    
    9,212,997
    
    
    
    700,674Federal funds sold
    
    
    8,164,000
    
    
    
    9,648,000Total cash and cash equivalents
    
    
    33,339,677
    
    
    
    17,804,394Securities available for sale
    
    
    48,800
    
    
    
    1,890,000Securities held to maturity (fair values of $10,012,500 and
$7,603,907, respectively)
    
    
    10,000,000
    
    
    
    7,580,000Mortgage-backed securities held to maturity (fair values of
$0 and $53,259,867, respectively)
    
    
    
    
    
    
    55,151,069Mortgage-backed securities available for sale
    
    
    57,441,332
    
    
    
    Loans receivable held for sale, net
    
    
    4,282,728
    
    
    
    7,830,994Loans receivable, net of allowance of
$11,000,008 and $9,653,972, respectively
    
    
    722,056,090
    
    
    
    714,492,406Office properties and equipment, net
    
    
    9,037,526
    
    
    
    9,232,711Real estate owned, net
    
    
    9,501,781
    
    
    
    4,064,708Federal Home Loan Bank stock
    
    
    12,811,100
    
    
    
    12,640,600Bank owned life insurance
    
    
    23,005,748
    
    
    
    23,009,038Prepaid expenses and other assets
    
    
    21,536,220
    
    
    
    13,706,218Total Assets
    
    $
    903,061,002
    
    
    $
    867,402,138LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesDeposits
    
    $
    696,449,810
    
    
    $
    659,385,765Short-term advances from the Federal Home Loan Bank
    
    
    
    
    
    
    9,000,000Line of credit
    
    
    1,375,000
    
    
    
    950,000Long-term advances from the Federal Home Loan Bank
    
    
    35,000,000
    
    
    
    35,000,000Repurchase agreement
    
    
    50,000,000
    
    
    
    50,000,000Subordinated debentures
    
    
    20,000,000
    
    
    
    20,000,000Advances from borrowers for taxes and insurance
    
    
    10,951,144
    
    
    
    8,973,604Accrued expenses and other liabilities
    
    
    23,331,517
    
    
    
    15,017,435Total Liabilities
    
    
    837,107,471
    
    
    
    798,326,804Stockholders EquitySerial preferred stock, none issued
    
    
    
    
    
    
    Common stock, $0.01 par value, 15,000,000 shares authorized;
8,246,548 shares issued
    
    
    82,465
    
    
    
    82,465Additional paid-in-capital
    
    
    69,307,738
    
    
    
    69,155,729Retained earnings (accumulated deficit)
    
    
    (45,680
    )
    
    
    3,674,287Accumulated other comprehensive income
    
    
    446,155
    
    
    
    Treasury Stock, at cost 472,725 shares
    
    
    (3,837,147
    )
    
    
    (3,837,147
    )Total Stockholders Equity
    
    
    65,953,531
    
    
    
    69,075,334Total Liabilities and Stockholders Equity
    
    $
    903,061,002
    
    
    $
    867,402,138
  Page 1




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PVF CAPITAL CORP.
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Interest and dividends incomeLoans
    
    $
    10,928,594
    
    
    $
    13,184,062
    
    
    $
    22,340,835
    
    
    $
    27,111,567Mortgage-backed securities
    
    
    687,260
    
    
    
    313,595
    
    
    
    1,387,533
    
    
    
    632,283Federal Home Loan Bank stock dividends
    
    
    158,871
    
    
    
    217,224
    
    
    
    329,428
    
    
    
    418,932Securities
    
    
    162,911
    
    
    
    589,001
    
    
    
    283,970
    
    
    
    1,276,113Federal funds sold and interest bearing deposits
    
    
    25,791
    
    
    
    162,789
    
    
    
    112,584
    
    
    
    319,744Total interest and dividends income
    
    
    11,963,427
    
    
    
    14,466,671
    
    
    
    24,454,350
    
    
    
    29,758,639Interest expenseDeposits
    
    
    6,249,819
    
    
    
    7,410,930
    
    
    
    12,192,372
    
    
    
    14,726,809Short-term borrowings
    
    
    700
    
    
    
    563,943
    
    
    
    9,799
    
    
    
    1,501,045Long-term borrowings
    
    
    912,877
    
    
    
    840,133
    
    
    
    1,823,591
    
    
    
    1,632,072Subordinated debt
    
    
    346,109
    
    
    
    385,787
    
    
    
    671,554
    
    
    
    775,799Total interest expense
    
    
    7,509,505
    
    
    
    9,200,793
    
    
    
    14,697,316
    
    
    
    18,635,725Net interest income
    
    
    4,453,922
    
    
    
    5,265,878
    
    
    
    9,757,034
    
    
    
    11,122,914Provision for loan losses
    
    
    3,641,000
    
    
    
    82,000
    
    
    
    4,332,000
    
    
    
    675,400Net interest income after provision for loan losses
    
    
    812,922
    
    
    
    5,183,878
    
    
    
    5,425,034
    
    
    
    10,447,514Noninterest income, netService and other fees
    
    
    177,546
    
    
    
    205,717
    
    
    
    355,800
    
    
    
    428,615Mortgage banking activities, net
    
    
    420,478
    
    
    
    325,987
    
    
    
    878,177
    
    
    
    726,368Increase (decrease) in cash surrender value of bank owned life insurance
    
    
    (56,215
    )
    
    
    214,405
    
    
    
    (3,289
    )
    
    
    467,621Impairment of securities
    
    
    (102,400
    )
    
    
    0
    
    
    
    (1,841,200
    )
    
    
    0Gain on the sale of securities
    
    
    665,929
    
    
    
    0
    
    
    
    665,929
    
    
    
    0Other, net
    
    
    74,218
    
    
    
    87,882
    
    
    
    82,775
    
    
    
    9,664Total noninterest income, net
    
    
    1,179,556
    
    
    
    833,991
    
    
    
    138,192
    
    
    
    1,632,268Noninterest expenseCompensation and benefits
    
    
    3,015,544
    
    
    
    2,629,842
    
    
    
    5,573,559
    
    
    
    5,594,273Office occupancy and equipment
    
    
    698,928
    
    
    
    813,118
    
    
    
    1,405,678
    
    
    
    1,614,971Other
    
    
    2,300,543
    
    
    
    1,582,147
    
    
    
    3,971,395
    
    
    
    3,102,110Total noninterest expense
    
    
    6,015,015
    
    
    
    5,025,107
    
    
    
    10,950,632
    
    
    
    10,311,354Income (loss) before federal income tax provision
    
    
    (4,022,537
    )
    
    
    992,762
    
    
    
    (5,387,406
    )
    
    
    1,768,428Federal income tax provision (benefit)
    
    
    (1,301,000
    )
    
    
    261,000
    
    
    
    (1,764,612
    )
    
    
    425,600Net income (loss)
    
    
    ($2,721,537
    )
    
    $
    731,762
    
    
    
    ($3,622,794
    )
    
    $
    1,342,828Basic earnings (loss) per share
    
    
    ($0.35
    )
    
    $
    0.09
    
    
    
    ($0.47
    )
    
    $
    0.17Diluted earnings (loss) per share
    
    
    ($0.35
    )
    
    $
    0.09
    
    
    
    ($0.47
    )
    
    $
    0.17Dividends declared per common share
    
    $
    0.000
    
    
    $
    0.074
    
    
    $
    0.010
    
    
    $
    0.148
  Page 2




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PVF CAPITAL CORP.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Six Months EndedDecember 31,2008
    
    
    2007Operating ActivitiesNet income
    
    
    ($3,622,794
    )
    
    $
    1,342,828Adjustments to reconcile net income to net cash from operating activitiesAmortization of premium on mortgage-backed securities
    
    
    16,497
    
    
    
    11,471Depreciation and amortization
    
    
    606,009
    
    
    
    796,333Provision for loan losses
    
    
    4,332,000
    
    
    
    675,400Impairment
of securities
    
    
    1,841,200
    
    
    
    0Accretion of deferred loan origination fees, net
    
    
    (307,506
    )
    
    
    (449,290
    )(Gain) loss on sale of loans receivable held for sale, net
    
    
    (171,878
    )
    
    
    (228,959
    )(Gain) loss on sale of mortgage-backed securities held for sale, net
    
    
    (665,929
    )
    
    
    0Loss on disposal of real estate owned, net
    
    
    322,486
    
    
    
    194,178Market adjustment for loans held for sale
    
    
    (160,320
    )
    
    
    (50,400
    )Change in fair value of mortgage banking derivatives
    
    
    (237,995
    )
    
    
    (122,700
    )Stock compensation
    
    
    152,009
    
    
    
    60,228Federal Home Loan Bank stock dividends
    
    
    (170,500
    )
    
    
    0Change in accrued interest on securities, loans, and borrowings, net
    
    
    1,052,708
    
    
    
    (43,720
    )Origination of loans receivable held for sale, net
    
    
    (20,265,561
    )
    
    
    (44,555,348
    )Sale of loans receivable held for sale, net
    
    
    23,901,504
    
    
    
    49,295,091Increase in cash surrender value of bank owned life insurance
    
    
    3,289
    
    
    
    (467,621
    )Net change in other assets and other liabilities
    
    
    1,670,591
    
    
    
    (2,121,544
    )Net cash from operating activities
    
    
    8,295,810
    
    
    
    4,335,947Investing ActivitiesLoan repayments and originations, net
    
    
    (22,381,391
    )
    
    
    1,034,200Principal repayments on mortgage-backed securities held to maturity
    
    
    1,912,965
    
    
    
    1,137,777Purchase of mortgage-backed securities available for sale
    
    
    (67,967,811
    )
    
    
    0Sale of Mortgage-backed securities
    
    
    65,090,007Purchase of securities available for sale
    
    
    0
    
    
    
    (1,019,140
    )Purchase of securities held to maturity
    
    
    (10,000,000
    )
    
    
    (32,580,000
    )Maturities of securities held to maturity
    
    
    7,580,000
    
    
    
    52,500,000Proceeds from sale of real estate owned
    
    
    5,033,654
    
    
    
    1,400,073Additions to office properties and equipment, net
    
    
    (410,824
    )
    
    
    (55,417
    )Net cash from investing activities
    
    
    (21,143,400
    )
    
    
    22,417,493Financing activitiesNet increase (decrease) in demand deposits, NOW, and passbook savings
    
    
    (3,708,706
    )
    
    
    (955,340
    )Net increase (decrease) in time deposits
    
    
    40,763,751
    
    
    
    21,223,145Net increase (decrease) in short-term Federal Home Loan Bank advances
    
    
    (9,000,000
    )
    
    
    (45,000,000
    )Net proceeds from (repayment of) line of credit
    
    
    425,000
    
    
    
    1,955,000Proceeds from exercise of stock options
    
    
    0
    
    
    
    336,171Stock repurchased and retired
    
    
    0
    
    
    
    (96,427
    )Cash dividend paid
    
    
    (97,173
    )
    
    
    (1,147,846
    )Net cash from financing activities
    
    
    28,382,872
    
    
    
    (23,685,297
    )Net increase in cash and cash equivalents
    
    
    15,535,282
    
    
    
    3,068,143Cash and cash equivalents at beginning of period
    
    
    17,804,394
    
    
    
    28,457,579Cash and cash equivalents at end of period
    
    $
    33,339,676
    
    
    $
    31,525,722Supplemental disclosures of cash flow information:Cash payments of interest expense
    
    $
    13,767,342
    
    
    $
    18,638,311Cash payments of income taxes
    
    $
    0
    
    
    $
    576,000Supplemental noncash investing activity:Transfer of loans to real estate owned
    
    $
    10,793,213
    
    
    $
    3,100,590
  Page 3




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##### Table of Contents



PVF CAPITAL CORP.
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 For the Six Months Ended
December 31, 2008 and 2007
(Unaudited)
         Page 4




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##### Table of Contents



Gross
    
    
    GrossFair
    
    
    Unrecognized
    
    
    UnrecognizedValue
    
    
    Gains
    
    
    LossesFNMA mortgage-backed securities
    
    $
    8,625,438
    
    
    $
    35,837
    
    
    
    FHLMC mortgage-backed securities
    
    
    9,350,961
    
    
    
    14,882
    
    
    
    GNMA mortgage-backed securities
    
    
    39,464,933
    
    
    
    625,273
    
    
    
    Total
    
    
    57,441,332
    
    
    $
    675,992
    
    
    
    
  Gross
    
    
    GrossCarrying
    
    
    Unrecognized
    
    
    Unrecognized
    
    
    FairAmount
    
    
    Gains
    
    
    Losses
    
    
    ValueFNMA mortgage-backed securities
    
    $
    54,835,052
    
    
    $
    6,562
    
    
    $
    (1,900,089
    )
    
    $
    52,941,555FHLMC mortgage-backed
securities
    
    
    316,017
    
    
    
    2,548
    
    
    
    (223
    )
    
    
    318,342Total
    
    $
    55,151,069
    
    
    $
    9,110
    
    
    $
    (1,900,312
    )
    
    $
    53,259,867
  Three months
    
    
    Three months
    
    
    Six months
    
    
    Six monthsended
    
    
    ended
    
    
    ended
    
    
    endedDec. 31, 2008
    
    
    Dec. 31, 2007
    
    
    Dec. 31. 2008
    
    
    Dec. 31. 2007Beginning
balance
    
    $
    8,843,278
    
    
    $
    4,799,927
    
    
    $
    9,653,972
    
    
    $
    4,580,549Provision for
loan losses
    
    
    3,641,000
    
    
    
    82,000
    
    
    
    4,332,000
    
    
    
    675,400Charge-offs
    
    
    (1,484,270
    )
    
    
    (63,270
    )
    
    
    (2,985,964
    )
    
    
    (437,292
    )Recoveries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Ending
balance
    
    $
    11,000,008
    
    
    $
    4,818,657
    
    
    $
    11,000,008
    
    
    $
    4,818,657
  Page 5




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##### Table of Contents



December 31,
    
    
    June 30,2008
    
    
    2008Loans held for sale
    
    $
    4,282,728
    
    
    $
    7,872,155Less: Allowance to adjust to lower of cost or market
    
    
    
    
    
    
    (41,161
    )Loans held for sale, net
    
    $
    4,282,728
    
    
    $
    7,830,994
   Six Months EndedDecember 31,2008
    
    
    2007Servicing rights:Beginning of period
    
    $
    4,398,783
    
    
    $
    4,426,296Additions
    
    
    244,521
    
    
    
    530,702Amortized to expense
    
    
    (712,478
    )
    
    
    (673,298
    )End of period
    
    $
    3,930,826
    
    
    $
    4,283,700
  Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Mortgage loan servicing fees
    
    $
    507,783
    
    
    $
    495,603
    
    
    $
    1,020,463
    
    
    $
    997,607Amortization and impairment of
mortgage loan servicing rights
    
    
    (352,056
    )
    
    
    (342,854
    )
    
    
    (712,479
    )
    
    
    (673,298
    )Market adjustments for loans
held for sale
    
    
    92,988
    
    
    
    
    
    
    
    160,320
    
    
    
    50,400Change in fair value of
mortgage banking derivatives
    
    
    126,377
    
    
    
    126,400
    
    
    
    237,995
    
    
    
    122,700Gain (losses) on sales of loans
    
    
    45,386
    
    
    
    46,838
    
    
    
    171,878
    
    
    
    228,959Mortgage banking activities,
net
    
    $
    420,478
    
    
    $
    325,987
    
    
    $
    878,177
    
    
    $
    726,368
  Page 6




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##### Table of Contents



Six months endedDecember 31, 2008Total options outstandingWeightedAverageExerciseShares
    
    
    PriceOptions outstanding, beginning of period
    
    
    533,426
    
    
    $
    9.32Forfeited
    
    
    (14,481
    )
    
    
    8.85Expired
    
    
    (23,383
    )
    
    
    5.77Exercised
    
    
    
    
    
    
    Granted
    
    
    94,200
    
    
    
    4.07Options outstanding, end of period
    
    
    589,762
    
    
    $
    8.63Options exercisable, end of period
    
    
    473,702
    
    
    $
    8.60
  Page 7




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##### Table of Contents



Three months ended
    
    Six months endedDecember 31,
    
    December 31,2008
    
    2007
    
    2008
    
    2007Proceeds from options
exercised
    
    $
    
    
    
    $
    82,917
    
    
    $
    
    
    
    $
    336,171Related tax benefit
recognized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Intrinsic value of
options exercised
    
    $
    
    
    
    $
    104,645
    
    
    $
    
    
    
    $
    388,042
  2008Expected average risk-free interest rate
    
    
    3.82
    %Expected average life (in years)
    
    
    9.42Expected volatility
    
    
    28.61
    %Expected dividend yield
    
    
    0
    %
   Three months ended December 31,2008
    
    2007Income
    
    
    
    
    
    
    
    
    
    Income(loss)
    
    Shares
    
    Per Share
    
    (loss)
    
    Shares
    
    Per Share(Numerator)
    
    (Denominator)
    
    Amount
    
    (Numerator)
    
    (Denominator)
    
    AmountBasic EPS
Net Income
(loss)
    
    
    ($2,721,538
    )
    
    
    7,773,823
    
    
    
    ($0.35
    )
    
    $
    731,762
    
    
    
    7,771,248
    
    
    $
    0.09Effect of
Stock Options
    
    
    
    
    
    
    
    
    
    
    0.00
    
    
    
    
    
    
    
    170,417
    
    
    
    0.00Diluted EPS
Net Income
(loss)
    
    
    ($2,721,538
    )
    
    
    7,773,823
    
    
    
    ($0.35
    )
    
    $
    731,762
    
    
    
    7,941,665
    
    
    $
    0.09
 Page 8




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##### Table of Contents



Six months ended December 31,2008
    
    2007Income
    
    
    
    
    
    
    
    
    
    Income(loss)
    
    Shares
    
    Per Share
    
    (loss)
    
    Shares
    
    Per Share(Numerator)
    
    (Denominator)
    
    Amount
    
    (Numerator)
    
    (Denominator)
    
    AmountBasic EPS
Net Income
(loss)
    
    
    ($3,622,794
    )
    
    
    7,773,823
    
    
    
    ($0.47
    )
    
    $
    1,342,828
    
    
    
    7,758,886
    
    
    $
    0.17Effect of
Stock Options
    
    
    
    
    
    
    0
    
    
    
    0.00
    
    
    
    
    
    
    
    185,270
    
    
    
    0.00Diluted EPS
Net Income
(loss)
    
    
    ($3,622,794
    )
    
    
    7,773,823
    
    
    
    ($0.47
    )
    
    $
    1,342,828
    
    
    
    7,944,156
    
    
    $
    0.17
         Page 9




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##### Table of Contents



QuotedPrices inActiveMarkets
    
    Significantfor
    
    Other
    
    SignificantIdentical
    
    Observable
    
    UnobservableDecember 31,
    
    Assets
    
    Inputs
    
    Inputs2008
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Securities available
for sale
    
    $
    48,800
    
    
    $
    48,800
    
    
    
    
    
    
    
    Loans held for sale
    
    $
    4,282,728
    
    
    
    
    
    
    $
    4,282,728Mortgage-backed
securities
available for
sale
    
    $
    57,441,332
    
    
    
    
    
    
    $
    57,441,332
    
    
    
    Mortgage-banking
pipeline derivatives
    
    $
    320,521
    
    
    
    
    
    
    $
    320,521
    
    
    
    
  QuotedPrices inActiveMarkets
    
    Significantfor
    
    Other
    
    SignificantIdentical
    
    Observable
    
    UnobservableDecember 31,
    
    Assets
    
    Inputs
    
    Inputs2008
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Impaired loans
    
    $
    12,118,340
    
    
    
    
    
    
    
    
    
    
    $
    12,118,340
     Page 10




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Page 11




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Page 12




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
   Page 13




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##### Table of Contents



FINANCIAL CONDITION continued
    December 31,
    
    
    June 30,2008
    
    
    2008Real estate mortgages:One-to-four family residential
    
    $
    163,063,396
    
    
    $
    168,532,008Home equity line of credit
    
    
    90,295,243
    
    
    
    87,876,182Multi-family residential
    
    
    60,077,201
    
    
    
    52,420,774Commercial
    
    
    195,142,037
    
    
    
    174,403,925Commercial equity line of credit
    
    
    40,993,539
    
    
    
    36,913,491Land
    
    
    70,524,085
    
    
    
    73,544,594Construction  residential
    
    
    53,063,858
    
    
    
    55,442,114Construction  multi-family
    
    
    5,393,315
    
    
    
    5,802,842Construction  commercial
    
    
    24,487,804
    
    
    
    38,303,228Total real estate mortgages
    
    
    703,040,478
    
    
    
    693,239,158Non-real estate loans
    
    
    32,491,517
    
    
    
    33,592,529Total loans receivable
    
    
    735,531,995
    
    
    
    726,831,687Net deferred loan origination fees
    
    
    (2,475,897
    )
    
    
    (2,685,309
    )Allowance for loan losses
    
    
    (11,000,008
    )
    
    
    (9,653,972
    )Loans receivable, net
    
    $
    722,056,090
    
    
    $
    714,492,406
   Page 14




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FINANCIAL CONDITION continued
  
 RESULTS OF OPERATIONS
    
    Three months ended December 31, 2008,
compared to three months ended
December 31, 2007.
      Page 15




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##### Table of Contents



RESULTS OF OPERATIONS continued
   December 31, 2008
    
    
    December 31, 2007Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    Interest
    
    
    Yield/Cost
    
    
    Balance
    
    
    Interest
    
    
    Yield/CostInterest-earning assetsLoans (1)
    
    $
    727,166
    
    
    $
    10,929
    
    
    
    6.01
    %
    
    $
    726,626
    
    
    $
    13,184
    
    
    
    7.26
    %Mortgage-backed securities
    
    
    57,190
    
    
    
    687
    
    
    
    4.81
    %
    
    
    25,043
    
    
    
    314
    
    
    
    5.01
    %Investments and other
    
    
    51,277
    
    
    
    347
    
    
    
    2.71
    %
    
    
    78,123
    
    
    
    969
    
    
    
    4.96
    %Total interest-earning
assets
    
    
    835,633
    
    
    
    11,963
    
    
    
    5.73
    %
    
    
    829,792
    
    
    
    14,467
    
    
    
    6.97
    %Non-interest-earning assets
    
    
    68,513
    
    
    
    
    
    
    
    
    
    
    
    60,723Total Assets
    
    $
    904,146
    
    
    
    
    
    
    
    
    
    
    $
    890,515Interest-bearing liabilitiesDeposits
    
    $
    697,093
    
    
    $
    6,249
    
    
    
    3.59
    %
    
    $
    655,425
    
    
    $
    7,411
    
    
    
    4.52
    %Borrowings
    
    
    83,855
    
    
    
    913
    
    
    
    4.36
    %
    
    
    105,365
    
    
    
    1,404
    
    
    
    5.33
    %Subordinated debt
    
    
    20,000
    
    
    
    347
    
    
    
    6.94
    %
    
    
    20,000
    
    
    
    386
    
    
    
    7.72
    %Total interest-bearing
liabilities
    
    
    800,948
    
    
    
    7,509
    
    
    
    3.75
    %
    
    
    780,790
    
    
    
    9,201
    
    
    
    4.71
    %Non-interest-bearing
liabilities
    
    
    36,199
    
    
    
    
    
    
    
    
    
    
    
    37,851Total liabilities
    
    $
    837,147
    
    
    
    
    
    
    
    
    
    
    $
    818,641Retained earnings
    
    
    66,999
    
    
    
    
    
    
    
    
    
    
    
    71,874Total liabilities and R.E.
    
    $
    904,146
    
    
    
    
    
    
    
    
    
    
    $
    890,515Net interest income
    
    
    
    
    
    $
    4,454
    
    
    
    
    
    
    
    
    
    
    $
    5,266Interest-rate spread
    
    
    
    
    
    
    
    
    
    
    1.98
    %
    
    
    
    
    
    
    
    
    
    
    2.26
    %Yield on interest-earning
assets
    
    
    
    
    
    
    
    
    
    
    2.13
    %
    
    
    
    
    
    
    
    
    
    
    2.54
    %Interest-earning assets to
interest-bearing
liabilities
    
    
    104.33
    %
    
    
    
    
    
    
    
    
    
    
    106.28
    %
 
 (1)
    
    Non-accruing loans are included in the average loan balances for the periods presented. Page 16




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##### Table of Contents



RESULTS OF OPERATIONS continued
   December 31, 2008
    
    
    June 30, 2008General valuation allowance
    
    $
    7,763,433
    
    
    $
    6,315,252Specific valuation allowance
    
    
    3,236,575
    
    
    
    3,338,720Total valuation allowance
    
    $
    11,000,008
    
    
    $
    9,653,972
   Page 17




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##### Table of Contents



RESULTS OF OPERATIONS continued
  December 31,
    
    
    June 30,2008
    
    
    2008(Dollars in thousands)Loans on non-accruing status (1):Real estate mortgages:One-to-four family residential
    
    $
    9,728
    
    
    $
    6,453Commercial
    
    
    4,616
    
    
    
    3,001Multi-family residential
    
    
    291
    
    
    
    152Construction and land
    
    
    17,057
    
    
    
    12,350Non real estate
    
    
    1,128
    
    
    
    533Total loans on non-accrual status:
    
    $
    32,820
    
    
    $
    22,489Ratio of non-performing loans to total loans
    
    
    4.52
    %
    
    
    3.09
    %Other non-performing assets (2)
    
    $
    9,502
    
    
    $
    4,065Total non-performing assets
    
    $
    42,322
    
    
    $
    26,554Total non-performing assets to total assets
    
    
    4.69
    %
    
    
    3.06
    %
 
 (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. 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 18




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RESULTS OF OPERATIONS continued
        Page 19




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##### Table of Contents



RESULTS OF OPERATIONS continued
    RESULTS OF OPERATIONS
    
    Six months ended December 31, 2008,
compared to six months ended
December 31, 2007.
    Page 20




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##### Table of Contents



RESULTS OF OPERATIONS continued
  December 31, 2008
    
    
    December 31, 2007Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    Interest
    
    
    Yield/Cost
    
    
    Balance
    
    
    Interest
    
    
    Yield/CostInterest-earning assetsLoans (1)
    
    $
    724,424
    
    
    $
    22,341
    
    
    
    6.17
    %
    
    $
    726,092
    
    
    $
    27,112
    
    
    
    7.47
    %Mortgage-backed securities
    
    
    56,092
    
    
    
    1,387
    
    
    
    4.95
    %
    
    
    25,328
    
    
    
    632
    
    
    
    4.99
    %Investments and other
    
    
    45,217
    
    
    
    726
    
    
    
    3.21
    %
    
    
    80,131
    
    
    
    2,015
    
    
    
    5.03
    %Total interest-earning
assets
    
    
    825,733
    
    
    
    24,454
    
    
    
    5.92
    %
    
    
    831,551
    
    
    
    29,759
    
    
    
    7.16
    %Non-interest-earning assets
    
    
    66,165
    
    
    
    
    
    
    
    
    
    
    
    56,508Total Assets
    
    $
    891,898
    
    
    
    
    
    
    
    
    
    
    $
    888,059Interest-bearing liabilitiesDeposits
    
    $
    686,640
    
    
    $
    12,192
    
    
    
    3.55
    %
    
    $
    649,341
    
    
    $
    14,727
    
    
    
    4.54
    %Borrowings
    
    
    85,704
    
    
    
    1,833
    
    
    
    4.28
    %
    
    
    119,223
    
    
    
    3,133
    
    
    
    5.26
    %Subordinated debt
    
    
    20,000
    
    
    
    672
    
    
    
    6.72
    %
    
    
    20,000
    
    
    
    776
    
    
    
    7.76
    %Total interest-bearing
liabilities
    
    
    792,344
    
    
    
    14,697
    
    
    
    3.71
    %
    
    
    788,564
    
    
    
    18,636
    
    
    
    4.73
    %Non-interest-bearing
liabilities
    
    
    31,863
    
    
    
    
    
    
    
    
    
    
    
    27,727Total liabilities
    
    $
    824,207
    
    
    
    
    
    
    
    
    
    
    $
    816,291Retained earnings
    
    
    67,691
    
    
    
    
    
    
    
    
    
    
    
    71,768Total liabilities and R.E.
    
    $
    891,898
    
    
    
    
    
    
    
    
    
    
    $
    888,059Net interest income
    
    
    
    
    
    $
    9,757
    
    
    
    
    
    
    
    
    
    
    $
    11,123Interest-rate spread
    
    
    
    
    
    
    
    
    
    
    2.21
    %
    
    
    
    
    
    
    
    
    
    
    2.43
    %Yield on interest-earning
assets
    
    
    
    
    
    
    
    
    
    
    2.36
    %
    
    
    
    
    
    
    
    
    
    
    2.68
    %Interest-earning assets to
interest-bearing
liabilities
    
    
    104.21
    %
    
    
    
    
    
    
    
    
    
    
    105.45
    %
 
 (1)
    
    Non-accruing loans are included in the average loan balances for the periods presented.  Page 21




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RESULTS OF OPERATIONS continued
         Page 22




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##### Table of Contents



RESULTS OF OPERATIONS continued
  December 31, 2008
 Park View
    
    
    
    
    
    Requirement forFederal
    
    Percent of
    
    Well-Capitalized(dollars in thousands)
    
    Capital
    
    Assets(1)
    
    InstitutionTangible capital
    
    $
    80,906
    
    
    
    8.98
    %
    
    
    N/ATier-1 core capital
    
    $
    80,906
    
    
    
    8.98
    
    
    
    5.00
    %Tier-1 risk-based capital
    
    $
    80,906
    
    
    
    11.51
    
    
    
    6.00Total risk-based capital
    
    $
    89,347
    
    
    
    12.61
    
    
    
    10.00
 June 30, 2008
 Park View
    
    
    
    
    
    Requirement forFederal
    
    Percent of
    
    Well-Capitalized(dollars in thousands)
    
    Capital
    
    Assets(1)
    
    InstitutionTangible capital
    
    $
    83,972
    
    
    
    9.68
    %
    
    
    N/ATier-1 core capital
    
    $
    83,972
    
    
    
    9.68
    
    
    
    5.00
    %Tier-1 risk-based capital
    
    $
    83,972
    
    
    
    12.09
    
    
    
    6.00Total risk-based capital
    
    $
    90,286
    
    
    
    12.99
    
    
    
    10.00
 
 (1)
    
    Tangible and core capital levels are shown as a percentage of total adjusted assets;
risk-based capital levels are shown as a percentage of risk-weighted assets. 
 LIQUIDITY AND CAPITAL RESOURCES
    Page 23




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##### Table of Contents



LIQUIDITY AND CAPITAL RESOURCES continued
   
 
  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   Page 24




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##### Table of Contents



QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK continued
  
  CONTROLS AND PROCEDURES
  
     Page 25




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##### Table of Contents



(a)
    
    N/A(b)
    
    N/A(c)
    
    The following table illustrates the repurchase of the Companys
common stock during the period ended December 31, 2008:
 (c) TotalNumber ofSharesPurchased as(a) Total
    
    
    
    
    
    Part of
    
    (d) Maximum Number ofNumber of
    
    (b) Average
    
    Publicly
    
    Shares that May YetShares
    
    Price Paid
    
    Announced Plans
    
    Be Purchased UnderPeriod
    
    Purchased
    
    per Share
    
    or Programs
    
    the Plans or ProgramsOctober 1
through October 31, 2008
    
    
    0
    
    
    $
    0.00
    
    
    
    0
    
    
    
    265,602November 1
through November 30, 2008
    
    
    0
    
    
    $
    0.00
    
    
    
    0
    
    
    
    265,602December 1
through December 31, 2008
    
    
    0
    
    
    $
    0.00
    
    
    
    0
    
    
    
    265,602Total
    
    
    0
    
    
    $
    0.00
    
    
    
    0
    
    
    
    265,602
      Votes in FavorNominee
    
    of election
    
    Votes WithheldRobert K. Healey
    
    
    7,257,070
    
    
    
    280,210Stanley T. Jaros
    
    
    6,996,247
    
    
    
    541,033Stuart D. Neidus
    
    
    7,260,741
    
    
    
    276,539Raymond J. Negrelli
    
    
    7,001,402
    
    
    
    535,878
 Page 26




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##### Table of Contents



Votes For
    
    Votes against
    
    Abstain7,491,006
    
    
    44,804
    
    
    
    1,472
  Votes For
    
    Votes against
    
    Abstain2,838,164
    
    
    917,805
    
    
    
    6,534
   Exhibits
  10.1
    
    Amended and Restated Severance Agreement among PVF Capital Corp.,
Park View Federal Savings Bank and John R. Male * (1)10.2
    
    Amended and Restated Severance Agreement among PVF Capital Corp.,
Park View Federal Savings Bank and Jeffrey N. Male * (1)10.3
    
    Amended and Restated Severance Agreement among PVF Capital Corp.,
Park View Federal Savings Bank and Edward B. Debevec * (1)31.1
    
    Rule 13a-14(a) Certification of Chief Executive Officer31.2
    
    Rule 13a-14(a) Certification of Chief Financial Officer32
    
    Section 1350 Certification
 
 *
    
    Management contract or compensatory plan, contract or arrangement.(1)
    
    Amended during the quarter ended December 31, 2008 to comply with
Section 409A of the Internal Revenue Code of 1986, as amended (the Code) and the
regulations and guidance issued with respect to Section 409A of the Code.




---



##### Table of Contents



Signature
  PVF Capital Corp.
     (Registrant)Date:  February 12, 2009
    /s/ Edward B. DebevecEdward B. DebevecTreasurer
(Only authorized officer and Principal Financial Officer)