##### 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, 2006.
 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.
 (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)
  
   
   þ o
  o þ o
  o þ
  Common Stock, $0.01 Par Value
    
    7,727,928(Class)
    
    (Outstanding at February 2, 2007)




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##### 



PVF CAPITAL CORP.
  PagePart I Financial InformationItem 1 Financial StatementsConsolidated Statements of Financial
Condition, December 31, 2006 (unaudited)
and June 30, 2006.
    
    
    1Consolidated Statements of Operations
for the three and six months ended
December 31, 2006 and 2005 (unaudited).
    
    
    2Consolidated Statements of Cash Flows
for the six months ended December 31,
2006 and 2005 (unaudited).
    
    
    3Notes to Consolidated Financial
Statements (unaudited).
    
    
    4Item 2 Managements Discussion and Analysis of
Financial Condition and Results of
Operations
    
    
    8Liquidity and Capital Resources
    
    
    19Item 3 Quantitative and Qualitative Disclosures
about Market Risk
    
    
    19Item 4 Controls and Procedures
    
    
    20Part II Other Information
    
    
    20EX-31.1EX-31.2EX-32




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##### Table of Contents



PVF CAPITAL CORP.
 
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 December 31,
    
    
    June 30,2006
    
    
    2006unauditedASSETSCash and cash equivalents:Cash and amounts due from depository
institutions
    
    $
    12,804,679
    
    
    $
    6,614,171Interest bearing deposits
    
    
    1,129,677
    
    
    
    1,804,098Federal funds sold
    
    
    14,651,000
    
    
    
    11,320,000Total cash and cash equivalents
    
    
    28,585,356
    
    
    
    19,738,269Securities held to maturity (fair values of
$57,923,125 and
$57,256,642, respectively)
    
    
    58,000,000
    
    
    
    58,000,000Mortgage-backed securities held to maturity (fair
values of
$27,012,789 and $25,761,813, respectively)
    
    
    27,467,747
    
    
    
    27,577,923Loans receivable held for sale, net
    
    
    12,939,986
    
    
    
    10,698,064Loans receivable, net of allowance of
$4,652,018 and $4,674,681, respectively
    
    
    730,126,283
    
    
    
    736,064,995Office properties and equipment, net
    
    
    11,284,363
    
    
    
    12,032,692Real estate owned, net
    
    
    361,175
    
    
    
    817,279Federal Home Loan Bank stock
    
    
    12,311,600
    
    
    
    11,955,000Bank owned life insurance
    
    
    21,691,557
    
    
    
    16,339,385Prepaid expenses and other assets
    
    
    12,852,964
    
    
    
    12,857,774Total Assets
    
    $
    915,621,031
    
    
    $
    906,081,381LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesDeposits
    
    $
    674,334,096
    
    
    $
    656,864,201Short-term advances from the Federal Home Loan
Bank
    
    
    54,000,000
    
    
    
    75,000,000Line of credit
    
    
    0
    
    
    
    1,772,871Long-term advances from the Federal Home Loan
Bank
    
    
    20,000,000
    
    
    
    20,000,000Repurchase agreement
    
    
    50,000,000
    
    
    
    50,000,000Subordinated debentures
    
    
    20,000,000
    
    
    
    10,000,000Advances from borrowers for taxes and insurance
    
    
    9,909,744
    
    
    
    8,102,098Accrued expenses and other liabilities
    
    
    16,703,940
    
    
    
    15,369,071Total Liabilities
    
    
    844,947,780
    
    
    
    837,108,241Stockholders EquitySerial preferred stock, none issued
    
    
    
    
    
    
    Common stock, $0.01 par value, 15,000,000
shares authorized;
8,196,161 and 8,188,867 shares issued,
respectively
    
    
    81,962
    
    
    
    81,889Additional paid-in-capital
    
    
    68,650,929
    
    
    
    68,507,097Retained earnings
    
    
    5,777,507
    
    
    
    4,221,301Treasury Stock, at cost 472,725 shares
    
    
    (3,837,147
    )
    
    
    (3,837,147
    )Total Stockholders Equity
    
    
    70,673,251
    
    
    
    68,973,140Total Liabilities and Stockholders Equity
    
    $
    915,621,031
    
    
    $
    906,081,381
  Page 1




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PVF CAPITAL CORP.
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2006
    
    
    2005
    
    
    2006
    
    
    2005Interest and dividends incomeLoans
    
    $
    14,232,710
    
    
    $
    12,131,020
    
    
    $
    28,554,715
    
    
    $
    23,618,586Mortgage-backed securities
    
    
    325,078
    
    
    
    346,087
    
    
    
    656,815
    
    
    
    705,098Federal Home Loan Bank stock
dividends
    
    
    181,012
    
    
    
    166,025
    
    
    
    356,684
    
    
    
    305,077Securities
    
    
    657,251
    
    
    
    569,368
    
    
    
    1,263,114
    
    
    
    1,087,556Fed funds sold and interest
bearing deposits
    
    
    157,902
    
    
    
    70,052
    
    
    
    281,118
    
    
    
    148,782Total interest and
dividends income
    
    
    15,553,953
    
    
    
    13,282,552
    
    
    
    31,112,446
    
    
    
    25,865,099Interest expenseDeposits
    
    
    7,244,260
    
    
    
    4,823,211
    
    
    
    14,114,348
    
    
    
    9,207,289Short-term borrowings
    
    
    746,072
    
    
    
    390,229
    
    
    
    1,571,438
    
    
    
    601,668Long-term borrowings
    
    
    844,571
    
    
    
    1,293,161
    
    
    
    1,686,592
    
    
    
    2,591,495Subordinated debt
    
    
    391,611
    
    
    
    169,284
    
    
    
    770,961
    
    
    
    323,160Total interest expense
    
    
    9,226,514
    
    
    
    6,675,885
    
    
    
    18,143,339
    
    
    
    12,723,612Net interest income
    
    
    6,327,439
    
    
    
    6,606,667
    
    
    
    12,969,107
    
    
    
    13,141,487Provision for loan losses
    
    
    252,000
    
    
    
    257,000
    
    
    
    92,000
    
    
    
    294,300Net interest income
after provision for
loan losses
    
    
    6,075,439
    
    
    
    6,349,667
    
    
    
    12,877,107
    
    
    
    12,847,187Noninterest income, netService and other fees
    
    
    311,421
    
    
    
    255,217
    
    
    
    644,719
    
    
    
    510,748Mortgage banking activities, net
    
    
    284,655
    
    
    
    141,628
    
    
    
    734,043
    
    
    
    462,782Increase in cash surrender value
of bank owned life insurance
    
    
    205,751
    
    
    
    145,440
    
    
    
    352,172
    
    
    
    312,576Other, net
    
    
    241,389
    
    
    
    19,211
    
    
    
    258,617
    
    
    
    54,567Total noninterest
income, net
    
    
    1,043,216
    
    
    
    561,496
    
    
    
    1,989,551
    
    
    
    1,340,673Noninterest expenseCompensation and benefits
    
    
    3,158,328
    
    
    
    3,078,325
    
    
    
    6,283,040
    
    
    
    6,220,206Office occupancy and equipment
    
    
    851,287
    
    
    
    961,179
    
    
    
    1,713,077
    
    
    
    1,997,404Other
    
    
    1,475,237
    
    
    
    1,403,320
    
    
    
    2,959,495
    
    
    
    2,599,410Total noninterest
expense
    
    
    5,484,852
    
    
    
    5,442,824
    
    
    
    10,955,612
    
    
    
    10,817,020Income before federal
income tax provision
    
    
    1,633,803
    
    
    
    1,468,339
    
    
    
    3,911,046
    
    
    
    3,370,840Federal income tax provision
    
    
    497,200
    
    
    
    441,100
    
    
    
    1,211,348
    
    
    
    992,000Net income
    
    $
    1,136,603
    
    
    $
    1,027,239
    
    
    $
    2,699,698
    
    
    $
    2,378,840Basic earnings per share
    
    $
    0.15
    
    
    $
    0.13
    
    
    $
    0.35
    
    
    $
    0.31Diluted earnings per share
    
    $
    0.15
    
    
    $
    0.13
    
    
    $
    0.35
    
    
    $
    0.30Dividends declared per common share
    
    $
    0.074
    
    
    $
    0.074
    
    
    $
    0.148
    
    
    $
    0.148
  Page 2




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PVF CAPITAL CORP.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Six Months EndedDecember 31,2006
    
    
    2005Operating ActivitiesNet income
    
    $
    2,699,698
    
    
    $
    2,378,840Adjustments to reconcile net income to net
cash from operating activitiesAmortization of premium on mortgage-backed
securities
    
    
    16,606
    
    
    
    34,575Depreciation and amortization
    
    
    888,890
    
    
    
    912,207Provision for losses on loans
    
    
    92,000
    
    
    
    294,300Accretion of deferred loan origination fees, net
    
    
    (796,974
    )
    
    
    (788,187
    )(Gain) loss on sale of loans receivable held for
sale, net
    
    
    9,824
    
    
    
    (413,865
    )Gain on disposal of real estate owned, net
    
    
    (227,922
    )
    
    
    0Market adjustment for loans held for sale
    
    
    (156,000
    )
    
    
    0Change in fair value of mortgage banking
derivatives
    
    
    (254,000
    )
    
    
    199,000Stock compensation
    
    
    141,502
    
    
    
    151,560Federal Home Loan Bank stock dividends
    
    
    (356,600
    )
    
    
    (305,000
    )Change in accrued interest on securities, loans,
and borrowings, net
    
    
    (402,111
    )
    
    
    (341,150
    )Origination of loans receivable held for sale, net
    
    
    (44,307,713
    )
    
    
    (62,196,767
    )Sale of loans receivable held for sale, net
    
    
    41,802,399
    
    
    
    59,944,171Increase in cash surrender value of bank owned
life insurance
    
    
    352,172
    
    
    
    312,576Net change in other assets and other liabilities
    
    
    3,507,660
    
    
    
    6,487,400Net cash from operating activities
    
    
    3,009,431
    
    
    
    6,669,660Investing ActivitiesLoan repayments and originations, net
    
    
    6,643,686
    
    
    
    (40,616,148
    )Principal repayments on mortgage-backed securities
held to maturity
    
    
    1,644,543
    
    
    
    3,242,218Mortgage-backed securities purchased
    
    
    (1,550,973
    )
    
    
    0Acquisition of bank owned life insurance
    
    
    (5,000,000
    )
    
    
    0Proceeds from sale of real estate owned
    
    
    684,026
    
    
    
    150,000Additions to office properties and equipment, net
    
    
    (140,561
    )
    
    
    (276,184
    )Net cash from investing activities
    
    
    2,280,721
    
    
    
    (37,500,114
    )Financing activitiesNet increase (decrease) in demand deposits, NOW,
and passbook savings
    
    
    3,529,710
    
    
    
    4,032,856Net increase in time deposits
    
    
    13,940,185
    
    
    
    9,933,701Repayment of long-term Federal Home Loan Bank
advances
    
    
    0
    
    
    
    (50,007,951
    )Net increase (decrease) in short-term Federal
Home Loan Bank advances
    
    
    (21,000,000
    )
    
    
    82,000,000Proceeds from issuance of subordinated debentures
    
    
    10,000,000
    
    
    
    0Net proceeds from (repayment of) line of credit
    
    
    (1,772,871
    )
    
    
    957,871Repayment of notes payable
    
    
    0
    
    
    
    (1,400,780
    )Purchase of treasury stock
    
    
    0
    
    
    
    (199,633
    )Proceeds from exercise of stock options
    
    
    115,903
    
    
    
    90,639Stock repurchased and retired
    
    
    (113,500
    )
    
    
    (87,009
    )Cash dividends paid
    
    
    (1,142,492
    )
    
    
    (1,093,785
    )Net cash from financing activities
    
    
    3,556,935
    
    
    
    44,225,909Net increase in cash and cash equivalents
    
    
    8,847,087
    
    
    
    13,395,455Cash and cash equivalents at beginning of period
    
    
    19,738,269
    
    
    
    11,090,076Cash and cash equivalents at end of period
    
    $
    28,585,356
    
    
    $
    24,485,531Supplemental disclosures of cash flow information:Cash payments of interest expense
    
    $
    18,090,517
    
    
    $
    12,678,924Cash payments of income taxes
    
    $
    1,630,000
    
    
    $
    1,257,000Supplemental noncash investing activity:Transfer of loans to real estate owned
    
    $
    0
    
    
    $
    676,735
  Page 3




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##### Table of Contents



PVF CAPITAL CORP.
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 December 31, 2006 and 2005
(Unaudited)
     Page 4




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##### Table of Contents



Six months endedDecember 31, 2006Total options outstandingWeightedAverageExerciseShares
    
    
    PriceOptions outstanding, beginning of period
    
    
    558,474
    
    
    $
    8.77Forfeited
    
    
    0
    
    
    
    0Exercised
    
    
    (17,982
    )
    
    
    6.45Granted
    
    
    66,775
    
    
    
    10.82Options outstanding, end of period
    
    
    607,267
    
    
    $
    9.06Options exercisable, end of period
    
    
    463,098
    
    
    $
    8.36
   Three months ended
    
    Six months endedDecember 31,
    
    December 31,2006
    
    2005
    
    2006
    
    2005Proceeds from options
exercised
    
    $
    104,619
    
    
    $
    90,639
    
    
    $
    115,903
    
    
    $
    90,639Related tax benefit
recognized
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0Intrinsic value of
options exercised
    
    $
    61,395
    
    
    $
    71,737
    
    
    $
    74,800
    
    
    $
    71,737
  2006
    
    2005Expected average risk-free interest rate
    
    
    4.56
    %
    
    
    4.57
    %Expected average life (in years)
    
    
    9.14
    
    
    
    9.72Expected volatility
    
    
    24.95
    %
    
    
    31.56
    %Expected dividend yield
    
    
    2.74
    %
    
    
    2.67
    %
 Page 5




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##### Table of Contents



Three months ended December 31,2006
    
    2005Income
    
    Shares
    
    Per Share
    
    Income
    
    Shares
    
    Per Share(Numerator)
    
    (Denominator)
    
    Amount
    
    (Numerator)
    
    (Denominator)
    
    AmountBasic EPS Net Income
    
    $
    1,136,603
    
    
    
    7,721,939
    
    
    $
    0.15
    
    
    $
    1,027,239
    
    
    
    7,716,090
    
    
    $
    0.13Effect of Stock
Options
    
    
    
    
    
    
    107,189
    
    
    
    0.00
    
    
    
    
    
    
    
    131,820
    
    
    
    0.00Diluted EPS Net
Income
    
    $
    1,136,603
    
    
    
    7,829,128
    
    
    $
    0.15
    
    
    $
    1,027,239
    
    
    
    7,847,910
    
    
    $
    0.13
 Six months ended December 31,2006
    
    2005Income
    
    Shares
    
    Per Share
    
    Income
    
    Shares
    
    Per Share(Numerator)
    
    (Denominator)
    
    Amount
    
    (Numerator)
    
    (Denominator)
    
    AmountBasic EPS Net Income
    
    $
    2,699,698
    
    
    
    7,719,641
    
    
    $
    0.35
    
    
    $
    2,378,840
    
    
    
    7,717,843
    
    
    $
    0.31Effect of Stock
Options
    
    
    
    
    
    
    107,105
    
    
    
    0.00
    
    
    
    
    
    
    
    147,857
    
    
    
    (0.01
    )Diluted EPS Net
Income
    
    $
    2,699,698
    
    
    
    7,826,746
    
    
    $
    0.35
    
    
    $
    2,378,840
    
    
    
    7,865,700
    
    
    $
    0.30
  Page 6




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##### Table of Contents



Six months endedDecember 31,2006
    
    
    2005Servicing rights:Beginning of period
    
    $
    4,806,836
    
    
    $
    5,001,474Additions
    
    
    409,566
    
    
    
    671,874Amortized to expense
    
    
    (647,352
    )
    
    
    (729,695
    )End of period
    
    $
    4,569,050
    
    
    $
    4,943,653
  Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2006
    
    
    2005
    
    
    2006
    
    
    2005Mortgage loan servicing fees
    
    $
    487,641
    
    
    $
    491,132
    
    
    $
    981,219
    
    
    $
    977,612Amortization and impairment of
mortgage loan servicing rights
    
    $
    (333,137
    )
    
    $
    (332,151
    )
    
    $
    (647,352
    )
    
    $
    (729,695
    )Market adjustments for loans
held for sale
    
    
    
    
    
    
    
    
    
    $
    156,000
    
    
    
    Change in fair value of
mortgage banking derivatives
    
    $
    162,000
    
    
    $
    (132,000
    )
    
    $
    254,000
    
    
    $
    (199,000
    )Gain (losses) on sales of loans
    
    $
    (31,849
    )
    
    $
    114,647
    
    
    $
    (9,824
    )
    
    $
    413,865Mortgage banking activities,
net
    
    $
    284,655
    
    
    $
    141,628
    
    
    $
    734,043
    
    
    $
    462,782
  Page 7




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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 8




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##### Table of Contents



FINANCIAL CONDITION continued
     December
    
    
    JuneReal estate mortgages:One-to-four family residential
    
    $
    174,885,177
    
    
    $
    174,574,861Home equity line of credit
    
    
    91,214,049
    
    
    
    94,449,845Multi-family residential
    
    
    49,388,117
    
    
    
    45,715,780Commercial
    
    
    188,964,619
    
    
    
    170,392,400Commercial equity line of credit
    
    
    32,412,866
    
    
    
    34,063,990Land
    
    
    75,929,813
    
    
    
    77,242,222Construction  residential
    
    
    71,385,538
    
    
    
    84,146,125Construction  commercial
    
    
    29,017,387
    
    
    
    41,712,042Total real estate mortgages
    
    
    713,197,566
    
    
    
    722,297,265Non real estate loans
    
    
    24,969,737
    
    
    
    21,824,041Total loans receivable
    
    
    738,167,303
    
    
    
    744,121,306Net deferred loan origination fees
    
    
    (3,389,002
    )
    
    
    (3,381,630
    )Allowance for loan losses
    
    
    (4,652,018
    )
    
    
    (4,674,681
    )Loans receivable, net
    
    $
    730,126,283
    
    
    $
    736,064,995
   Page 9




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##### Table of Contents



FINANCIAL CONDITION continued
   Page 10




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##### Table of Contents



RESULTS OF OPERATIONS
      Page 11




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##### Table of Contents



RESULTS OF OPERATIONS Continued
 December 31, 2006
    
    
    December 31, 2005Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    Interest
    
    
    Yield/Cost
    
    
    Balance
    
    
    Interest
    
    
    Yield/CostInterest-earning assetsLoans
    
    $
    745,278
    
    
    $
    14,233
    
    
    
    7.64
    %
    
    $
    703,204
    
    
    $
    12,131
    
    
    
    6.90
    %Mortgage-backed securities
    
    
    26,669
    
    
    
    325
    
    
    
    4.87
    %
    
    
    29,242
    
    
    
    346
    
    
    
    4.73
    %Investments
    
    
    81,688
    
    
    
    995
    
    
    
    4.87
    %
    
    
    76,552
    
    
    
    806
    
    
    
    4.21
    %Total interest-earning
assets
    
    
    853,635
    
    
    
    15,553
    
    
    
    7.29
    %
    
    
    808,998
    
    
    
    13,283
    
    
    
    6.57
    %Non-interest-earning assets
    
    
    59,855
    
    
    
    
    
    
    
    
    
    
    
    54,720Total Assets
    
    $
    913,490
    
    
    
    
    
    
    
    
    
    
    $
    863,718Interest-bearing liabilitiesDeposits
    
    $
    666,160
    
    
    $
    7,244
    
    
    
    4.35
    %
    
    $
    598,391
    
    
    $
    4,823
    
    
    
    3.22
    %Borrowings
    
    
    125,521
    
    
    
    1,591
    
    
    
    5.07
    %
    
    
    155,650
    
    
    
    1,684
    
    
    
    4.33
    %Subordinated debt
    
    
    20,000
    
    
    
    391
    
    
    
    7.83
    %
    
    
    10,984
    
    
    
    169
    
    
    
    6.15
    %Total interest-bearing
liabilities
    
    
    811,681
    
    
    
    9,226
    
    
    
    4.55
    %
    
    
    765,025
    
    
    
    6,676
    
    
    
    3.49
    %Non-interest-bearing
liabilities
    
    
    31,475
    
    
    
    
    
    
    
    
    
    
    
    31,298Total liabilities
    
    $
    843,156
    
    
    
    
    
    
    
    
    
    
    $
    796,323Retained earnings
    
    
    70,334
    
    
    
    
    
    
    
    
    
    
    
    67,395Total liabilities and R.E.
    
    $
    913,490
    
    
    
    
    
    
    
    
    
    
    $
    863,718Net Interest income
    
    
    
    
    
    $
    6,327
    
    
    
    
    
    
    
    
    
    
    $
    6,607Interest-rate spread
    
    
    
    
    
    
    
    
    
    
    2.74
    %
    
    
    
    
    
    
    
    
    
    
    3.08
    %Yield on interest-earning
assets
    
    
    
    
    
    
    
    
    
    
    2.96
    %
    
    
    
    
    
    
    
    
    
    
    3.27
    %Interest-earning assets to
interest-bearing
liabilities
    
    
    105.17
    %
    
    
    
    
    
    
    
    
    
    
    105.75
    %
  Page 12




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##### Table of Contents



RESULTS OF OPERATIONS Continued
    December 31,
    
    
    June 30,2006
    
    
    2006(Dollars in thousands)Non-accruing loans (1):Real estate
    
    $
    13,654
    
    
    $
    15,456Accruing loans which are contractuallyPast due 90 days or more:Real estate
    
    $
    1,640
    
    
    $
    0Total non-accrual and 90 daysPast due loans
    
    $
    15,294
    
    
    $
    15,456Ratio of non-performing loans to total loans
    
    
    2.07
    %
    
    
    2.08
    %Other non-performing assets (2)
    
    $
    361
    
    
    $
    817Total non-performing assets
    
    $
    15,655
    
    
    $
    16,273Total non-performing assets to total assets
    
    
    1.71
    %
    
    
    1.80
    %
 
 (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 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 13




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RESULTS OF OPERATIONS Continued
      Page 14




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##### Table of Contents



RESULTS OF OPERATIONS Continued
      December 31, 2006More than90 daysPerforming
    
    
    and accruing
    
    
    Nonaccrual
    
    
    TotalOne-to-four family
residential
    
    $
    107,381
    
    
    $
    0
    
    
    $
    4,668,815
    
    
    $
    4,776,196Home equity line of credit
    
    
    214,860
    
    
    
    0
    
    
    
    1,281,728
    
    
    
    1,496,588Multi-family residential
    
    
    0
    
    
    
    0
    
    
    
    21,300
    
    
    
    21,300Commercial real estate
    
    
    278,917
    
    
    
    0
    
    
    
    2,843,394
    
    
    
    3,122,311Land
    
    
    1,378,440
    
    
    
    0
    
    
    
    398,878
    
    
    
    1,777,318Residential construction
    
    
    175,000
    
    
    
    0
    
    
    
    3,008,450
    
    
    
    3,183,450Total classified real
estate loans
    
    $
    2,154,598
    
    
    $
    0
    
    
    $
    12,222,565
    
    
    $
    14,377,163Non real estate loans
    
    
    48,760
    
    
    
    0
    
    
    
    0
    
    
    
    48,760$
    2,203,358
    
    
    $
    0
    
    
    $
    12,222,565
    
    
    $
    14,425,923
 June 30, 2006More than90 daysPerforming
    
    
    and accruing
    
    
    Nonaccrual
    
    
    TotalOne-to-four family
residential
    
    $
    124,401
    
    
    $
    0
    
    
    $
    4,732,215
    
    
    $
    4,856,616Home equity line of credit
    
    
    124,363
    
    
    
    0
    
    
    
    2,593,797
    
    
    
    2,718,160Multi-family residential
    
    
    0
    
    
    
    0
    
    
    
    21,300
    
    
    
    21,300Commercial real estate
    
    
    0
    
    
    
    0
    
    
    
    2,480,794
    
    
    
    2,480,794Land
    
    
    0
    
    
    
    0
    
    
    
    1,188,659
    
    
    
    1,188,659Residential construction
    
    
    175,000
    
    
    
    0
    
    
    
    3,687,350
    
    
    
    3,862,350Total classified real
estate loans
    
    $
    423,764
    
    
    $
    0
    
    
    $
    14,704,115
    
    
    $
    15,127,879Non real estate loans
    
    
    59,810
    
    
    
    0
    
    
    
    0
    
    
    
    59,810$
    483,574
    
    
    $
    0
    
    
    $
    14,704,115
    
    
    $
    15,187,689
  Page 15




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RESULTS OF OPERATIONS Continued
       RESULTS OF OPERATIONS
   Page 16




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##### Table of Contents



RESULTS OF OPERATIONS continued
  December 31, 2006
    
    
    December 31, 2005Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    Interest
    
    
    Yield/Cost
    
    
    Balance
    
    
    Interest
    
    
    Yield/CostInterest-earning assetsLoans
    
    $
    743,381
    
    
    $
    28,555
    
    
    
    7.68
    %
    
    $
    689,508
    
    
    $
    23,619
    
    
    
    6.85
    %Mortgage-backed securities
    
    
    26,975
    
    
    
    657
    
    
    
    4.87
    %
    
    
    30,115
    
    
    
    705
    
    
    
    4.68
    %Investments
    
    
    80,351
    
    
    
    1,900
    
    
    
    4.73
    %
    
    
    77,201
    
    
    
    1,541
    
    
    
    3.99
    %Total interest-earning
Assets
    
    
    850,707
    
    
    
    31,112
    
    
    
    7.31
    %
    
    
    796,824
    
    
    
    25,865
    
    
    
    6.49
    %Non-interest-earning assets
    
    
    60,653
    
    
    
    
    
    
    
    
    
    
    
    53,842Total Assets
    
    $
    911,360
    
    
    
    
    
    
    
    
    
    
    $
    850,666Interest-bearing liabilitiesDeposits
    
    $
    663,463
    
    
    $
    14,114
    
    
    
    4.25
    %
    
    $
    595,897
    
    
    $
    9,207
    
    
    
    3.09
    %Borrowings
    
    
    128,317
    
    
    
    3,258
    
    
    
    5.08
    %
    
    
    148,734
    
    
    
    3,194
    
    
    
    4.29
    %Subordinated debt
    
    
    20,000
    
    
    
    771
    
    
    
    7.71
    %
    
    
    11,149
    
    
    
    323
    
    
    
    5.79
    %Total interest-bearing
liabilities
    
    
    811,780
    
    
    
    18,143
    
    
    
    4.47
    %
    
    
    755,780
    
    
    
    12,724
    
    
    
    3.37
    %Non-interest-bearing
liabilities
    
    
    29,699
    
    
    
    
    
    
    
    
    
    
    
    27,805Total liabilities
    
    $
    841,479
    
    
    
    
    
    
    
    
    
    
    $
    783,585Retained earnings
    
    
    69,881
    
    
    
    
    
    
    
    
    
    
    
    67,081Total liabilities and R.E.
    
    $
    911,360
    
    
    
    
    
    
    
    
    
    
    $
    850,666Net interest income
    
    
    
    
    
    $
    12,969
    
    
    
    
    
    
    
    
    
    
    $
    13,141Interest-rate spread
    
    
    
    
    
    
    
    
    
    
    2.84
    %
    
    
    
    
    
    
    
    
    
    
    3.12
    %Yield on interest-earning
assets
    
    
    
    
    
    
    
    
    
    
    3.05
    %
    
    
    
    
    
    
    
    
    
    
    3.30
    %Interest-earning assets to
interest-bearing
liabilities
    
    
    104.80
    %
    
    
    
    
    
    
    
    
    
    
    105.43
    %
 Page 17




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##### Table of Contents



RESULTS OF OPERATIONS continued
       Page 18




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##### Table of Contents



RESULTS OF OPERATIONS continued
  
 LIQUIDITY AND CAPITAL RESOURCES
    
 
 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   Page 19




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##### Table of Contents



CONTROLS AND PROCEDURES
  
 
     Page 20




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##### Table of Contents



Item 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 December 31, 2006:
 (c) TotalNumber ofSharesPurchased as
    
    
    (d) Maximum Number(a) Total
    
    
    
    
    
    
    Part of
    
    
    of Shares that MayNumber of
    
    
    (b) Average
    
    
    Publicly
    
    
    Yet Be PurchasedShares
    
    
    Price Paid
    
    
    Announced Plans
    
    
    Under the Plans orPeriod
    
    Purchased
    
    
    per Share
    
    
    or Programs
    
    
    ProgramsOctober 1 through
October 31, 2006
    
    
    9,583
    
    
    $
    10.67
    
    
    
    0
    
    
    
    265,602November 1 through
November 30, 2006
    
    
    0
    
    
    $
    0
    
    
    
    0
    
    
    
    265,602December 1 through
December 31,2006
    
    
    0
    
    
    $
    0
    
    
    
    0
    
    
    
    265,602Total
    
    
    9,583
    
    
    $
    10.67
    
    
    
    0
    
    
    
    265,602
  Item 3.
    
    Defaults Upon Senior Securities. N/A
 Item 4.
    
    Submission of Matters to a Vote of Security Holders.
   Votes in FavorNominee
    
    of election
    
    Votes WithheldRobert K. Healey
    
    
    6,546,915
    
    
    
    771,299Stuart D. Neidus
    
    
    6,542,927
    
    
    
    775,287C. Keith Swaney
    
    
    6,543,200
    
    
    
    775,014Gerald A. Fallon
    
    
    6,520,837
    
    
    
    797,377
      Page 21




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##### Table of Contents



Votes For
    
    Votes against
    
    Abstain
    
    Not Voting7,222,597
    
    
    52,273
    
    
    
    43,343
    
    
    
    -0-
 Item 5.
    
    Other Information. N/A
 Item 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 22




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##### Table of Contents



Signature
  PVF Capital Corp.
(Registrant)Date: February 9, 2007
    /s/ C. Keith SwaneyC. Keith SwaneyPresident, Chief Operating
Officer and Treasurer
(Only authorized officer and
  Principal Financial Officer)