##### 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 September 30, 2009.
 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
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 30000 Aurora Road, Solon, Ohio
    
    44139(Address of principal executive offices)
    
    (Zip Code)
  
  
  þ o
  o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o(Do not check if a smaller reporting
company)
    
    Smaller reporting company þ
  o þ
  Common Stock, $0.01 Par Value
    
    7,979,120(Class)
    
    (Outstanding at November 6, 2009)




---



##### 



PVF CAPITAL CORP.
  PagePart I Financial InformationItem 1 Financial StatementsConsolidated Statements of Financial
Condition, September 30, 2009 (unaudited)
and June 30, 2009.
    
    
    1Consolidated Statements of Operations
for the three months ended
September 30, 2009 and 2008 (unaudited).
    
    
    2Consolidated Statements of Cash Flows
for the three months ended September 30,
2009 and 2008 (unaudited).
    
    
    3Notes to Consolidated Financial
Statements (unaudited).
    
    
    4Item 2 Managements Discussion and Analysis of
Financial Condition and Results of
Operations
    
    
    19Item 3 Quantitative and Qualitative Disclosures
About Market Risk
    
    
    28Item 4 Controls and Procedures
    
    
    29Part II Other Information
    
    
    29Item 1  Legal Proceedings
    
    
    29Item 1A  Risk Factors
    
    
    29Item 2  Unregistered Sale of Equity Securities and Use of Proceeds
    
    
    33Item 3  Defaults Upon Senior Securities
    
    
    33Item 4  Submission of Matters to a Vote of Security Holders
    
    
    33Item 5  Other Information
    
    
    34Item 6  Exhibits
    
    
    34SignaturesEX-4.1EX-4.2EX-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
 September 30,
    
    
    June 30,2009
    
    
    2009unauditedASSETSCash and cash equivalents:Cash and amounts due from depository institutions
    
    $
    16,546,693
    
    
    $
    8,464,544Interest bearing deposits
    
    $
    823,972
    
    
    
    1,939,514Federal funds sold
    
    
    11,633,000
    
    
    
    10,809,000Total cash and cash equivalents
    
    
    29,003,665
    
    
    
    21,213,058Securities available for sale
    
    
    136,800
    
    
    
    102,800Securities held to maturity (fair values of $57,021,500
and
$49,999,939, respectively)
    
    
    57,000,000
    
    
    
    49,999,939Mortgage-backed securities available for sale
    
    
    60,629,712
    
    
    
    64,177,633Loans receivable held for sale, net
    
    
    6,428,165
    
    
    
    27,078,472Loans receivable, net of allowance of
$31,823,982 and $31,483,205, respectively
    
    
    653,224,139
    
    
    
    668,460,029Office properties and equipment, net
    
    
    8,433,097
    
    
    
    8,624,496Real estate owned, net
    
    
    11,569,225
    
    
    
    11,607,758Federal Home Loan Bank stock
    
    
    12,811,100
    
    
    
    12,811,100Bank owned life insurance
    
    
    22,914,407
    
    
    
    22,894,013Prepaid expenses and other assets
    
    
    24,930,350
    
    
    
    25,239,535Total Assets
    
    $
    887,080,660
    
    
    $
    912,208,833LIABILITIES AND STOCKHOLDERS EQUITYLiabilitiesDeposits
    
    $
    696,931,038
    
    
    $
    724,931,569Short-term advances from the Federal Home Loan Bank
    
    
    10,000,000
    
    
    
    0Note payable
    
    
    1,339,444
    
    
    
    1,366,111Long-term advances from the Federal Home Loan Bank
    
    
    35,000,000
    
    
    
    35,000,000Repurchase agreement
    
    
    50,000,000
    
    
    
    50,000,000Subordinated debentures
    
    
    10,000,000
    
    
    
    20,000,000Advances from borrowers for taxes and insurance
    
    
    7,030,609
    
    
    
    9,555,137Accrued expenses and other liabilities
    
    
    21,885,356
    
    
    
    21,850,819Total Liabilities
    
    
    832,186,447
    
    
    
    862,703,636Stockholders EquitySerial preferred stock, none issued
    
    
    
    
    
    
    Common stock, $0.01 par value, 15,000,000 shares
authorized;
8,451,845 and 8,246,548 shares issued, respectively
    
    
    84,518
    
    
    
    82,465Additional paid-in-capital
    
    
    69,894,176
    
    
    
    69,377,852Retained earnings (accumulated deficit)
    
    
    (12,338,587
    )
    
    
    (16,538,515
    )Accumulated other comprehensive income
    
    
    1,091,253
    
    
    
    420,542Treasury Stock, at cost 472,725 shares
    
    
    (3,837,147
    )
    
    
    (3,837,147
    )Total Stockholders Equity
    
    
    54,894,213
    
    
    
    49,505,197Total Liabilities and Stockholders Equity
    
    $
    887,080,660
    
    
    $
    912,208,833




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##### Table of Contents



PVF CAPITAL CORP.


CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 Three Months EndedSeptember 30,2009
    
    
    2008Interest and dividends incomeLoans
    
    $
    9,157,018
    
    
    $
    11,412,241Mortgage-backed securities
    
    
    663,405
    
    
    
    700,273Federal Home Loan Bank stock dividends
    
    
    159,700
    
    
    
    170,557Securities
    
    
    9,895
    
    
    
    121,059Federal funds sold and interest bearing deposits
    
    
    7,393
    
    
    
    86,793Total interest and dividends income
    
    
    9,997,411
    
    
    
    12,490,923Interest expenseDeposits
    
    
    4,358,532
    
    
    
    5,942,553Short-term borrowings
    
    
    0
    
    
    
    9,099Long-term borrowings
    
    
    912,097
    
    
    
    910,714Subordinated debt
    
    
    250,099
    
    
    
    325,445Total interest expense
    
    
    5,520,728
    
    
    
    7,187,811Net interest income
    
    
    4,476,683
    
    
    
    5,303,112Provision for loan losses
    
    
    1,760,000
    
    
    
    691,000Net interest income after provision for loan losses
    
    
    2,716,683
    
    
    
    4,612,112Noninterest income, netService and other fees
    
    
    165,584
    
    
    
    178,254Mortgage banking activities, net
    
    
    1,054,727
    
    
    
    457,699Increase (decrease) in cash surrender value of bank owned life
insurance
    
    
    20,393
    
    
    
    52,926Impairment of securities
    
    
    0
    
    
    
    (1,738,800
    )Gain (loss) on real estate owned
    
    
    (90,113
    )
    
    
    (13,408
    )Gain on the cancellation of subordinated debt
    
    
    8,561,530
    
    
    
    0Other, net
    
    
    151,724
    
    
    
    21,965Total noninterest income, net
    
    
    9,863,845
    
    
    
    (1,041,364
    )Noninterest expenseCompensation and benefits
    
    
    2,241,679
    
    
    
    2,558,015Office occupancy and equipment
    
    
    678,267
    
    
    
    706,750Outside services
    
    
    852,359
    
    
    
    75,000Federal deposit insurance premium
    
    
    565,733
    
    
    
    191,403Real estate owned expense
    
    
    782,188
    
    
    
    188,915Other
    
    
    1,115,874
    
    
    
    1,215,534Total noninterest expense
    
    
    6,236,100
    
    
    
    4,935,617Income (loss) before federal income tax provision
    
    
    6,344,428
    
    
    
    (1,364,869
    )Federal income tax provision (benefit)
    
    
    2,144,500
    
    
    
    (463,612
    )Net income (loss)
    
    $
    4,199,928
    
    
    
    ($901,257
    )Basic earnings (loss) per share
    
    $
    0.54
    
    
    
    ($0.12
    )Diluted earnings (loss) per share
    
    $
    0.54
    
    
    
    ($0.12
    )Dividends declared per common share
    
    $
    0.000
    
    
    $
    0.010




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##### Table of Contents



PVF CAPITAL CORP.



CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Three Months EndedSeptember 30,2009
    
    
    2008Operating ActivitiesNet income (loss)
    
    $
    4,199,928
    
    
    
    ($901,257
    )Adjustments to reconcile net income to net cash from operating activitiesAmortization of premium on mortgage-backed securities
    
    
    123,659
    
    
    
    1,814Depreciation and amortization
    
    
    242,933
    
    
    
    314,723Provision for loan losses
    
    
    1,760,000
    
    
    
    691,000Impairment of securites
    
    
    
    
    
    
    1,738,800Accretion of deferred loan origination fees, net
    
    
    (380,986
    )
    
    
    (223,035
    )(Gain) loss on cancellation of subordinated debt
    
    
    (8,561,530
    )(Gain) loss on sale of loans receivable held for sale, net
    
    
    (1,627,541
    )
    
    
    (126,492
    )Loss on disposal of real estate owned, net
    
    
    90,113
    
    
    
    299,408Market adjustment for loans held for sale
    
    
    14,858
    
    
    
    (67,332
    )Change in fair value of mortgage banking derivatives
    
    
    701,092
    
    
    
    (111,618
    )Stock compensation
    
    
    18,377
    
    
    
    26,270Federal Home Loan Bank stock dividends
    
    
    
    
    
    
    (170,500
    )Change in accrued interest on securities, loans, and borrowings, net
    
    
    62,130
    
    
    
    1,108,214Origination of loans receivable held for sale, net
    
    
    (56,721,105
    )
    
    
    (10,856,452
    )Sale of loans receivable held for sale, net
    
    
    77,971,294
    
    
    
    15,316,926Increase in cash surrender value of bank owned life insurance
    
    
    (20,394
    )
    
    
    (52,926
    )Net change in other assets and other liabilities
    
    
    (2,715,215
    )
    
    
    (1,743,921
    )Net cash from operating activities
    
    
    15,157,613
    
    
    
    5,243,622Investing ActivitiesLoan repayments and originations, net
    
    
    12,160,065
    
    
    
    (10,568,538
    )Principal repayments on mortgage-backed securities held to maturity
    
    
    5,908,206
    
    
    
    1,153,610Purchase of mortgage-backed securities available for sale
    
    
    (1,501,775
    )
    
    
    (3,000,000
    )Purchase of securities held to maturity
    
    
    (57,000,000
    )
    
    
    0Maturities of securities held to maturity
    
    
    50,000,000
    
    
    
    0Proceeds from sale of real estate owned
    
    
    1,645,231
    
    
    
    3,713,463Additions to office properties and equipment, net
    
    
    (51,535
    )
    
    
    (339,708
    )Net cash from investing activities
    
    
    11,160,192
    
    
    
    (9,041,173
    )Financing activitiesNet increase (decrease) in demand deposits, NOW, and passbook savings
    
    
    8,511,227
    
    
    
    (9,493,854
    )Net increase (decrease) in time deposits
    
    
    (36,511,758
    )
    
    
    59,828,535Net increase (decrease) in short-term Federal Home Loan Bank advances
    
    
    10,000,000
    
    
    
    (9,000,000
    )Repayment of note payable
    
    
    (26,667
    )
    
    
    0Net proceeds from (repayment of) line of credit
    
    
    0
    
    
    
    425,000Payment in exchange for cancellation of subordinated debt
    
    
    (500,000
    )
    
    
    0Cash dividend paid
    
    
    0
    
    
    
    (155,438
    )Net cash from financing activities
    
    
    (18,527,197
    )
    
    
    41,604,243Net increase in cash and cash equivalents
    
    
    7,790,607
    
    
    
    37,806,692Cash and cash equivalents at beginning of period
    
    
    21,213,058
    
    
    
    17,804,394Cash and cash equivalents at end of period
    
    $
    29,003,665
    
    
    $
    55,611,086Supplemental disclosures of cash flow information:Cash payments of interest expense
    
    $
    5,740,043
    
    
    $
    6,002,738Cash payments of income taxes
    
    $
    0
    
    
    $
    0Supplemental noncash investing activity:Transfer of loans to real estate owned
    
    $
    1,696,811
    
    
    $
    7,890,196Supplemental noncash financing activity:Commpon stock and warrants issued in exchange for cancellation of
subordinated debt
    
    $
    1,329,645
    
    
    $
    0




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##### Table of Contents



PVF CAPITAL CORP.   
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS   For the Three Months Ended
September 30, 2009 and 2008
(Unaudited)
     4




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##### Table of Contents



Gross
    
    
    GrossCarrying
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairAmount
    
    
    Gains
    
    
    Losses
    
    
    ValueFNMA
mortgage-backed
securities
    
    $
    32,654,950
    
    
    $
    831,349
    
    
    $
    
    
    
    $
    33,486,299FHLMC
mortgage-backed
securities
    
    
    22,203,157
    
    
    
    589,655
    
    
    
    
    
    
    
    22,792,812GNMA
mortgage-backed
securities
    
    
    4,207,387
    
    
    
    143,214
    
    
    
    
    
    
    
    4,350,601Total
    
    $
    59,065,494
    
    
    $
    1,564,215
    
    
    $
    
    
    
    $
    60,629,712
  Gross
    
    
    GrossCarrying
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairAmount
    
    
    Gains
    
    
    Losses
    
    
    ValueFNMA
mortgage-backed
securities
    
    $
    32,999,418
    
    
    $
    262,310
    
    
    $
    (17,721
    )
    
    $
    33,244,007FHLMC
mortgage-backed
securities
    
    
    26,029,802
    
    
    
    256,223
    
    
    
    
    
    
    
    26,286,025GNMA
mortgage-backed
securities
    
    
    4,566,428
    
    
    
    81,173
    
    
    
    
    
    
    
    4,647,601Total
    
    $
    63,595,648
    
    
    $
    599,706
    
    
    $
    (17,721
    )
    
    $
    64,177,633
   Gross
    
    
    GrossAmortized
    
    
    Unrecognized
    
    
    Unrecognized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueU.S Treasury
    
    $
    50,000,000
    
    
    $
    
    
    
    $
    
    
    
    $
    50,000,000FHLB debenture
    
    
    5,000,000
    
    
    
    11,830
    
    
    
    
    
    
    
    5,011,830FHLMC medium-term note
    
    
    2,000,000
    
    
    
    9,670
    
    
    
    
    
    
    
    2,009,670Total
    
    $
    57,000,000
    
    
    $
    21,500
    
    
    $
    
    
    
    $
    57,021,500
 5




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##### Table of Contents



Three months
    
    
    Three monthsended
    
    
    endedSeptember 30,
    
    
    September 30,2009
    
    
    2008Beginning balance
    
    $
    31,483,205
    
    
    $
    9,653,972Provision for
loan losses
    
    
    1,760,000
    
    
    
    691,000Charge-offs
    
    
    (1,419,223
    )
    
    
    (1,501,694
    )Recoveries
    
    
    
    
    
    
    Ending balance
    
    $
    31,823,982
    
    
    $
    8,843,278
   Three Months EndedSeptember 30,2009
    
    
    2008Servicing rights:Beginning of period
    
    $
    6,097,861
    
    
    $
    4,398,783Additions
    
    
    1,012,802
    
    
    
    172,059Amortized to expense
    
    
    (491,068
    )
    
    
    (360,423
    )End of period
    
    $
    6,619,595
    
    
    $
    4,210,419
 6




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##### Table of Contents



Three Months EndedSeptember 30,2009
    
    
    2008Mortgage loan servicing fees
    
    $
    634,204
    
    
    $
    512,680Amortization of mortgage loan servicing rights
    
    
    (491,068
    )
    
    
    (360,423
    )Loan
organisation and sales activity
    
    
    911,591
    
    
    
    305,442Mortgage banking activities, net
    
    $
    1,054,727
    
    
    $
    457,699
   7




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##### Table of Contents



Three months endedSeptember 30, 2009Total options outstandingWeightedAverageExerciseShares
    
    
    PriceOptions outstanding, beginning of period
    
    
    582,792
    
    
    $
    8.54Forfeited
    
    
    (68,607
    )
    
    
    8.48Expired
    
    
    (35,431
    )
    
    
    7.76Exercised
    
    
    
    
    
    
    Granted
    
    
    
    
    
    
    Options outstanding, end of period
    
    
    478,754
    
    
    $
    8.60Options exercisable, end of period
    
    
    373,894
    
    
    $
    8.47
   8




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##### Table of Contents



Three months ended September 30,2009
    
    2008Income
    
    
    
    
    
    
    
    
    
    Income(loss)
    
    Shares
    
    Per Share
    
    (loss)
    
    Shares
    
    Per Share(Numerator)
    
    (Denominator)
    
    Amount
    
    (Numerator)
    
    (Denominator)
    
    AmountBasic EPS
Net Income
(loss)
    
    $
    4,199,928
    
    
    
    7,825,147
    
    
    $
    0.54
    
    
    
    ($901,257
    )
    
    
    7,747,683
    
    
    
    ($0.12
    )Effect of
Stock Options
    
    
    
    
    
    
    
    
    
    
    0.00
    
    
    
    
    
    
    
    
    
    
    
    0.00Diluted EPS
Net Income
(loss)
    
    $
    4,199,928
    
    
    
    7,825,147
    
    
    $
    0.54
    
    
    
    ($901,257
    )
    
    
    7,747,683
    
    
    
    ($0.12
    )
      9




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##### Table of Contents



Securities
 Loans held for sale
 Mortgage banking pipeline derivatives
 Warrants.
 10




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##### Table of Contents



QuotedPrices inActiveMarkets
    
    Significantfor
    
    Other
    
    SignificantIdentical
    
    Observable
    
    UnobservableSeptember 30,
    
    Assets
    
    Inputs (Level
    
    Inputs2009
    
    (Level 1)
    
    2)
    
    (Level 3)Assets:Securities
available for sale
    
    $
    136,800
    
    
    $
    136,800
    
    
    $
    
    
    
    
    Loans held for sale
    
    
    6,428,165
    
    
    
    
    
    
    
    6,428,165Mortgage-backed
securities
available for sale:FNMA MBS
    
    
    33,486,000
    
    
    
    
    
    
    
    33,486,000
    
    
    
    FHLMC MBS
    
    
    22,793,000
    
    
    
    
    
    
    
    22,793,000
    
    
    
    GNMA MBS
    
    
    4,351,000
    
    
    
    
    
    
    
    4,351,000
    
    
    
    Interest rate lock
commitments
    
    
    613,886
    
    
    
    
    
    
    
    613,886Liabilities:Mandatory forward
sales contracts
    
    
    (110,203
    )
    
    
    
    
    
    
    (110,203
    )
    
    
    Warrants
    
    
    (829,645
    )
    
    
    
    
    
    
    
    
    
    
    (829,645
    )
  QuotedPrices inActiveMarkets
    
    Significantfor
    
    Other
    
    SignificantIdentical
    
    Observable
    
    UnobservableSeptember 30,
    
    Assets
    
    Inputs
    
    Inputs2009
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Impaired loans
    
    $
    24,700,916
    
    
    
    
    
    
    
    
    
    
    $
    24,700,916Real estate
owned
    
    
    11,569,225
    
    
    
    
    
    
    
    
    
    
    
    11,569,225
   11




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##### Table of Contents



September 30, 2009
    
    June 30, 2009Carrying
    
    Estimated
    
    Carrying
    
    EstimatedAmount
    
    Fair Value
    
    Amount
    
    Fair Value(in thousands)Assets:Cash and amounts due from
depository institutions
    
    $
    16,547
    
    
    $
    16,547
    
    
    $
    8,465
    
    
    $
    8,465Interest-bearing deposits
    
    
    824
    
    
    
    824
    
    
    
    1,940
    
    
    
    1,940Federal funds sold
    
    
    11,633
    
    
    
    11,633
    
    
    
    10,809
    
    
    
    10,809Securities held to maturity
    
    
    57,000
    
    
    
    57,021
    
    
    
    50,000
    
    
    
    50,000Equity securities
    
    
    137
    
    
    
    137
    
    
    
    103
    
    
    
    103Mortgage-backed securities available
for sale
    
    
    60,630
    
    
    
    60,630
    
    
    
    64,178
    
    
    
    64,178Loans receivable, net
    
    
    653,224
    
    
    
    656,235
    
    
    
    668,460
    
    
    
    667,697Loans receivable held for sale, net
    
    
    6,428
    
    
    
    6,428
    
    
    
    27,078
    
    
    
    27,078Federal Home Loan Bank stock
    
    
    12,811
    
    
    NA
    
    
    
    12,811
    
    
    NAAccrued interest receivable
    
    
    3,194
    
    
    
    3,194
    
    
    
    3,475
    
    
    
    3,475Mandatory forward sales contracts
    
    
    
    
    
    
    
    
    
    
    699
    
    
    
    699Commitments to make loans
intended to be sold
    
    
    614
    
    
    
    614
    
    
    
    506
    
    
    
    506Warrants issuedLiabilities:Demand deposits and
passbook savings
    
    
    (196,709
    )
    
    
    (196,709
    )
    
    
    (188,198
    )
    
    
    (188,198
    )Time deposits
    
    
    (500,222
    )
    
    
    (510,562
    )
    
    
    (536,734
    )
    
    
    (547,620
    )Line of credit
    
    
    (1,339
    )
    
    
    (1,339
    )
    
    
    (1,366
    )
    
    
    (1,366
    )Advances from the Federal Home Loan Bank
of Cincinnati
    
    
    (45,000
    )
    
    
    (46,822
    )
    
    
    (35,000
    )
    
    
    (36,517
    )Repurchase agreement
    
    
    (50,000
    )
    
    
    (53,000
    )
    
    
    (50,000
    )
    
    
    (53,900
    )Subordinated debentures
    
    
    (10,000
    )
    
    
    (1,900
    )
    
    
    (20,000
    )
    
    
    (3,800
    )Accrued interest payable
    
    
    (1,156
    )
    
    
    (1,156
    )
    
    
    (1,379
    )
    
    
    (1,379
    )Mandatory
forward sales contracts
    
    
    (110
    )
    
    
    (110
    )
    
    
    
    
    
    
    Warrants
    
    
    (830
    )
    
    
    (830
    )
    
    
    
    
    
    
    
   Cash and amounts due from depository institutions, interest bearing deposits, and federal funds
sold.
 12




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##### Table of Contents



Loans receivable
 Federal Home Loan Bank stock.
 Demand deposits and time deposits.
 Line of credit.
 Advances from the Federal Home Loan Bank of Cincinnati
 Notes payable and subordinated debentures
 Accrued interest receivable and accrued interest payable
  13




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14




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15




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##### Table of Contents



2009
    
    
    2008Unrealized holding gains (losses) on
available for sale securities
    
    $
    1,016,230
    
    
    $
    (1,738,800
    )Reclassification adjustment for losses (gains)
realized in income
    
    
    
    
    
    
    1,738,800Net unrealized gains (losses)
    
    
    1,016,230
    
    
    
    Tax effect
    
    
    355,681
    
    
    
    Other comprehensive income
    
    $
    670,711
    
    
    $
  Business
Combinations
 Consolidation,
  Consolidation
 16




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Consolidation
  Exchange
Agreement
    17




---



##### Table of Contents



Repurchase
Agreement
  Other
  18




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##### Table of Contents



MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
   19




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September 30,
    
    
    June 30,2009
    
    
    2009Real estate mortgages:One-to-four family residential
    
    $
    160,353,613
    
    
    $
    158,955,714Home equity line of credit
    
    
    88,946,898
    
    
    
    88,406,791Multi-family residential
    
    
    56,749,908
    
    
    
    58,568,073Commercial
    
    
    195,256,770
    
    
    
    192,114,887Commercial equity line of credit
    
    
    44,181,563
    
    
    
    46,286,802Land
    
    
    60,308,532
    
    
    
    60,922,130Construction  residential
    
    
    32,656,177
    
    
    
    39,237,333Construction  multi-family
    
    
    4,944,559
    
    
    
    5,211,399Construction  commercial
    
    
    16,684,318
    
    
    
    20,381,398Total real estate mortgages
    
    
    660,082,338
    
    
    
    670,084,527Non-real estate loans
    
    
    26,881,146
    
    
    
    32,155,056Total loans receivable
    
    
    686,963,484
    
    
    
    702,239,583Net deferred loan origination fees
    
    
    (1,915,363
    )
    
    
    (2,296,349
    )Allowance for loan losses
    
    
    (31,823,982
    )
    
    
    (31,483,205
    )Loans receivable, net
    
    $
    653,224,139
    
    
    $
    668,460,029
 20




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21




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RESULTS OF OPERATIONS
 
     22




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##### Table of Contents



RESULTS OF OPERATIONS continued
  September 30, 2009
    
    
    September 30, 2008Average
    
    
    
    
    
    
    Average
    
    
    Average
    
    
    
    
    
    
    AverageBalance
    
    
    Interest
    
    
    Yield/Cost
    
    
    Balance
    
    
    Interest
    
    
    Yield/CostInterest-earning assetsLoans (1)
    
    $
    732,889
    
    
    $
    9,157
    
    
    
    5.00
    %
    
    $
    721,682
    
    
    $
    11,412
    
    
    
    6.33
    %Mortgage-backed securities
    
    
    58,866
    
    
    
    663
    
    
    
    4.51
    %
    
    
    54,994
    
    
    
    700
    
    
    
    5.09
    %Investments and other
    
    
    37,548
    
    
    
    177
    
    
    
    1.89
    %
    
    
    39,157
    
    
    
    379
    
    
    
    3.87
    %Total interest-earning
assets
    
    
    829,303
    
    
    
    9,997
    
    
    
    4.82
    %
    
    
    815,833
    
    
    
    12,491
    
    
    
    6.12
    %Non-interest-earning assets
    
    
    60,342
    
    
    
    
    
    
    
    
    
    
    
    70,627Total Assets
    
    $
    889,645
    
    
    
    
    
    
    
    
    
    
    $
    886,460Interest-bearing
liabilitiesDeposits
    
    $
    689,037
    
    
    $
    4,358
    
    
    
    2.53
    %
    
    $
    676,187
    
    
    $
    5,943
    
    
    
    3.52
    %Borrowings
    
    
    90,042
    
    
    
    912
    
    
    
    4.05
    %
    
    
    87,553
    
    
    
    920
    
    
    
    4.20
    %Subordinated debt
    
    
    16,957
    
    
    
    250
    
    
    
    5.90
    %
    
    
    20,000
    
    
    
    325
    
    
    
    6.50
    %Total interest-bearing
liabilities
    
    
    797,412
    
    
    
    5,520
    
    
    
    2.77
    %
    
    
    783,740
    
    
    
    7,188
    
    
    
    3.67
    %Non-interest-bearing
liabilities
    
    
    38,366
    
    
    
    
    
    
    
    
    
    
    
    33,127Total liabilities
    
    $
    837,445
    
    
    
    
    
    
    
    
    
    
    $
    816,867Shareholders equity
    
    
    52,200
    
    
    
    
    
    
    
    
    
    
    
    69,593Total
liabilities and shareholders equity
    
    $
    889,645
    
    
    
    
    
    
    
    
    
    
    $
    886,460Net interest income
    
    
    
    
    
    $
    4,477
    
    
    
    
    
    
    
    
    
    
    $
    5,303Interest-rate spread
    
    
    
    
    
    
    
    
    
    
    2.05
    %
    
    
    
    
    
    
    
    
    
    
    2.46
    %Yield on interest-earning
assets
    
    
    
    
    
    
    
    
    
    
    2.16
    %
    
    
    
    
    
    
    
    
    
    
    2.60
    %Interest-earning assets to
interest-bearing
liabilities
    
    
    104.00
    %
    
    
    
    
    
    
    
    
    
    
    104.09
    %
 
 (1)
    
    Non-accruing loans are included in the average loan balances for the periods presented. 23




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##### Table of Contents



RESULTS OF OPERATIONS continued
   September 30, 2009
    
    
    June 30, 2009General valuation allowance
    
    $
    14,927,162
    
    
    $
    15,071,653Specific valuation allowance
    
    
    16,896,743
    
    
    
    16,411,552Total valuation allowance
    
    $
    31,823,905
    
    
    $
    31,483,205
    24




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##### Table of Contents



RESULTS OF OPERATIONS continued
  September 30,
    
    
    June 30,2009
    
    
    2009(Dollars in thousands)Loans on non-accruing status (1):Real estate mortgages:One-to-four family residential
    
    $
    16,494
    
    
    $
    15,551Commercial
    
    
    16,294
    
    
    
    13,140Multi-family residential (2)
    
    
    371
    
    
    
    371Construction and land (2)
    
    
    40,710
    
    
    
    39,757Non real estate
    
    
    1,042
    
    
    
    943Total loans on non-accrual status:
    
    $
    74,911
    
    
    $
    69,762Ratio of non-performing loans to total loans
    
    
    10.90
    %
    
    
    10.03
    %Other non-performing assets (3)
    
    $
    11,569
    
    
    $
    11,608Total non-performing assets
    
    $
    86,480
    
    
    $
    81,370Total non-performing assets to total assets
    
    
    9.75
    %
    
    
    8.92
    %
 
 (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)
    
    Two loans totaling $3,308,500 were reclassified from multi-family residential to construction
and land for the period ended June 30, 2009.(3)
    
    Other non-performing assets represent property acquired by the Bank through foreclosure or
repossession.   25




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RESULTS OF OPERATIONS continued
       26




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##### Table of Contents



RESULTS OF OPERATIONS continued
    LIQUIDITY AND CAPITAL RESOURCES
    27




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##### Table of Contents



LIQUIDITY AND CAPITAL RESOURCES continued
   
  QUANTITATIVE AND QUALTITATIVE DISCLOSURES ABOUT MARKET RISK
   28




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##### Table of Contents



CONTROLS AND PROCEDURES
  
  
  
   The Company and the Bank are subject to restrictions and conditions of Cease and Desist Orders
issued by the Office of Thrift Supervision. Both entities have incurred and expect to continue to
incur significant additional regulatory compliance expense in connection with the Cease and Desist
Orders. Failure to comply with the Cease and Desist Orders could result in additional enforcement
action against us.
  29




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Our classified asset levels currently are not sufficient to achieve compliance with the classified
asset levels we must meet by December 31, 2010.
  Higher loan losses could require us to increase our allowance for loan losses through a charge to
earnings.
  30




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##### Table of Contents



A continuation of recent turmoil in the financial markets could have an adverse effect on our
financial position or results of operations.
  31




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##### Table of Contents



The current economic recession could result in increases in our level of non-performing loans
and/or reduce demand for our products and services, which would lead to lower revenue, higher loan
losses and lower earnings.
  Increased and/or special FDIC assessments will hurt our earnings
  32




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##### Table of Contents



The Bank has been notified by the counterparty to a repurchase agreement that the counterparty is
entitled to declare that an event of default has occurred under the repurchase agreement. If the
counterparty were to declare a default and pursue its remedies, the Bank could incur an expense of
approximately $3.0 million related to the early termination of the repurchase transaction.
  
  (a)
    
    N/A
 (b)
    
    N/A
 (c)
    
    The Company did not repurchase its equity securities during the
period ended September 30, 2009:
 
  
  33




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##### Table of Contents



Item 6.
    
    (a) Exhibits4.1
    
    Form of Common Stock Warrant issued to Alesco Preferred Funding IV,
Ltd.4.2
    
    Form of Common Stock Warrant issued to Alesco Preferred Funding IV,
Ltd.10.1
    
    Exchange Agreement by and among Alesco Preferred Funding IV, Ltd.,
Cohen & Company Financial Management, LLC and PVF Capital Corp., dated September
1, 200910.2
    
    Joint Cancellation Direction and Release by and among PVF Capital
Corp., PVF Capital Trust I and The Bank of New York Mellon, dated September 3,
200910.3
    
    Exchange Agreement between PVF Capital Corp., Marty E. Adams, Umberto
P. Fedeli, Robert J. King, Jr., James B. Pastore, John S. Loeber, Lee Burdman,
Jonathan A. Levy, Richard R. Hollington Jr. and Richard R. Hollington, III, dated
October 9, 200910.4
    
    Stipulation and Consent to the Issuance of an Order to Cease and
Desist between Park View Federal Savings Bank and the Office of Thrift Supervision
(1)10.5
    
    Order to Cease and Desist issued by the Office of Thrift Supervision
for Park View Federal Savings Bank (1)10.6
    
    Stipulation and Consent to the Issuance of an Order to Cease and
Desist between PVF Capital Corp. and the Office of Thrift Supervision (1)10.7
    
    Order to Cease and Desist issued by the Office of Thrift Supervision
for PVF Capital Corp. (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
 
 (1)
    
    Incorporated herein by reference to the Registrants Current Report on Form 8-K filed
with the Securities and Exchange Commission on October 23, 2009 (Commission File No. 0-24948). 34




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Signature
  PVF Capital Corp.
   (Registrant)Date:  November 6, 2009
    /s/ Robert J. King, Jr.Robert J. King, Jr.President and Chief Executive Officer
(Duly authorized officer)/s/ Edward B. DebevecEdward B. DebevecTreasurer
(Principal financial officer)