<PAGE>   1
                                                                      Exhibit 13

[LOGO] PVF CAPITAL CORP.





[LOGO]

ANNUAL REPORT

JUNE 30, 2001




<PAGE>   2

TABLE OF CONTENTS

Letter to Shareholders                                   1

New Corporate Center                                     4

Selected Consolidated Financial and Other Data           6

Management's Discussion and Analysis of
Financial Condition and Results of Operations            8

Independent Auditors' Report                            21






<PAGE>   3






[LOGO] PVF CAPITAL CORP.


TO OUR SHAREHOLDERS

We are pleased to announce that PVF Capital Corp. completed another successful
year in fiscal 2001. New market opportunities allowed us to achieve growth in
assets of $123.5 million, or 20.2 percent, and increase the loan and
mortgage-backed securities portfolios by $72.3 million, or 13.8 percent. During
the year, the Company successfully opened its new corporate headquarters along
with two new branch offices. Despite substantial costs incurred with our office
expansion, a weak economy, and sharply declining interest rates during much of
the year, the Company was able to improve on the prior year's operating results
due to the growth of our balance sheet, strong asset/liability management, and
our ability to limit the level of credit losses sustained.

Earnings were $6.6 million, or $1.27 basic earnings per share and $1.23 diluted
earnings per share, for the year ended June 30, 2001. Return on average assets
was 1.00 percent and return on average common equity was 14.6 percent for the
year.

Our stock repurchase program announced in June of 1999 was renewed for an
additional 12 months in April 2001. Pursuant to this plan and our cash dividend
policy, the Company repurchased 123,857 shares, or 2.3 percent, of its common
stock through June 30, 2001 and paid a $0.288 per share cash dividend for the
year. Continuation of the stock repurchase program and cash dividend policy will
be dependent on the Company's financial condition, earnings, capital needs,
regulatory requirements, and market conditions. Additionally, in July 2001, the
Company declared a 10 percent stock dividend.

The significant growth of the Company over the past year has been the result of
our corporate plan to identify markets in need of the types of





                                       1
<PAGE>   4

personalized service and financial products available at a community bank. With
this in mind, we are optimistic about the future role of community banks and
will continue with our plan to restructure and expand our branch network into
new markets offering opportunity for future growth. Our basic strategy remains
to function as a niche lender, providing our customers a wide range of lending
products, collateralized by real estate, that may not be available to them at
larger banks.

In the past year, Park View Federal made the following changes to its branch
network.

         In August 2000, Park View Federal relocated its North Moreland branch
         office near Shaker Square in Cleveland, Ohio to Shaker Towne Centre in
         Shaker Heights, Ohio. This move has provided our customers a more
         spacious office in a more easily accessible location with ample parking
         not available at the North Moreland facility. At June 30, 2001, this
         branch had $49.5 million in deposits and generated substantial new loan
         growth.

         In August 2000, Park View Federal opened a new branch in Solon, Ohio.
         This new full-service branch office is located at 34400 Aurora Road in
         the Solar Shopping Center near the southeast corner of Aurora Road and
         Route 91. At June 30, 2001, this branch had attracted $29.0 million in
         new deposits and generated substantial new loan growth.

         In November of 2000, Park View Federal began the move into a new
         corporate headquarters in Solon, Ohio. This new corporate office is
         located at 30000 Aurora Road near the southeast corner of Aurora Road
         and Harper Road just south of Interstate 480. We are excited about this
         move because it has given us the room necessary for our current
         operations, it has united all of the Bank's internal departments under
         one roof, and it will allow for future growth of the Company. The
         Corporate Center will feature a full-service branch office that is
         scheduled to open on or before November 30, 2001. This move has
         resulted in the closing of our North Moreland and Rockside
         administrative offices.

In the coming year, Park View Federal is planning to further expand its branch
network.

         On or before March 31, 2002, Park View Federal will open a new branch
         office in Strongsville, Ohio. This new full-service branch office will
         be equipped with an ATM and will be located at 17780 Pearl Road at the
         southwest corner of the intersection of Pearl and Drake Roads.


                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT


                                       2

<PAGE>   5

         On or before March 31, 2002, Park View Federal will open a new branch
         office in Avon, Ohio. This new full-service branch office will be
         equipped with an ATM and will be located at 36311 Detroit Road.

The growth of our branch network has opened new markets to us in residential,
construction, multi-family, and commercial real estate lending and has also
increased our ability to attract consumer deposits. The opening of the Corporate
Center, Strongsville, and Avon, Ohio branch offices will bring the number of
full-service branch office locations we have located throughout greater
Cleveland to 15. We plan to continue our efforts to identify new locations for
the further expansion of our branch network.

Visit our Web site on the Internet at www.parkviewfederal.com. This Web site
provides information about our products and services, and provides access to
current loan and deposit rate information. We are working to enhance this site
so that it will provide a full line of home banking services to our customers.

We invite all shareholders to attend the Annual Meeting of Stockholders of PVF
Capital Corp. on Monday, October 22, 2001 at 10:00 a. m. at the Hilton Cleveland
East, 3663 Park East Drive, Beachwood, Ohio. We look forward to another
successful year of service and dedication to the community, its members, our
shareholders, and our customers.

                                   Sincerely,


                                  /s/ John R. Male
                                  John R. Male
                                  Chairman of the Board
                                  and Chief Executive Officer


                                  /s/ C. Keith Swaney
                                  C. Keith Swaney
                                  President



                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT


                                       3
<PAGE>   6


NEW CORPORATE CENTER

As we complete our ninth year of operation as a publicly-traded company, we have
taken a large step in our long-term plan to improve our corporate infrastructure
in order to enhance our efficiency as a company and to make us more responsive
to the financial needs of our growing customer base. This large step was taken
in November of 2000, with the opening of our new corporate headquarters in
Solon, Ohio.

During the past two years, the Company has grown significantly. Total assets
have increased by over 60 percent from $449.2 million at June 30, 1999 to $736.5
million at June 30, 2001, while our employee base has increased by over 15
percent. The Company's internal operations had been housed at two separate
locations and space limitations, along with the expensive upkeep of two older
facilities and the inefficiencies involved with running our operations from two
separate locations, made it apparent that a change was necessary. With this in
mind, management adopted a long-term plan to reorganize the structure of the
Company that included a complete upgrade of our in-house technology, and the
acquisition of a corporate center that would house our current operations, allow
for future growth, and unite our internal operations under one roof.

A profile for our new corporate center was developed. This profile included
consideration of the ideal location to best meet the needs of our customers, the
size of the structure that would best match our corporate needs, and our ability
to afford the corporate center at a cost that would not negatively impact future
earnings. Our search led us to Solon, Ohio, where we identified the availability
of a corporate office that would serve as an ideal facility for the new Park
View Federal Corporate Center. The acquisition of our new facilities located at
30000 Aurora Road, Solon, Ohio, was concluded in September 2000. This office is
located at the intersection

                             [PICTURE OF BUILDING]


                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT



                                       4
<PAGE>   7


of Aurora and Harper-Cochran Roads, approximately 1.9 miles east of our previous
corporate office on Rockside Road in Bedford Heights, which had been the
Company's primary administrative office for the past 29 years.

Our new Corporate Center office building is a four-story, 55,000 square-foot
facility that was originally built in 1980 as corporate offices for Agency
Rent-A-Car, Inc., and was thus easily adaptable to a corporate center that would
meet the needs of a bank. Management felt it was vital to invest the resources
necessary to improve, renovate, and update the building in order to make it into
a modern banking facility. We are, therefore, in the process of constructing a
two-story, glass tower at the front of the building that will serve as the
entrance to our corporate headquarters as well as the new retail branch, also
currently under construction. We hope to complete all improvements to the
building by the end of September and to have all department personnel situated
in place by the end of October. Adjacent to our new office building, we acquired
additional land that includes a beautiful water fountain and will provide a
park-like environment for employee lunches and other outdoor activities.

[PICTURE]

For the present, the first, third, and fourth floors of the building will serve
as the corporate headquarters for the management and staff of Park View Federal
Savings Bank. This space should provide ample room for the current operations of
the bank and allow for future growth. Since the property is prime rental real
estate, we intend to lease the entire second floor of the building on a
short-term basis. This will allow us to take advantage of the current rental
value of the property and will also make the space available to accommodate the
future expansion of the Company.

We are very excited about our new facility and cordially invite you, as a
shareholder of the Company, to visit us in the near future.


[PICTURE]

                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT



                                       5
<PAGE>   8

SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA

FINANCIAL CONDITION DATA:
<TABLE>
<CAPTION>
                                                                                       At June 30,
                                                               ------------------------------------------------------------
                                                                 2001         2000         1999          1998        1997
                                                               --------     --------     --------     --------     --------
(dollars in thousands)
<S>                                                            <C>          <C>          <C>          <C>          <C>
Total assets..............................................     $736,525     $612,986     $449,201     $433,279     $373,081

Loans receivable and mortgage-backed
  securities held for investment, net.....................      591,767      514,885      397,284      371,949      341,914
Loans receivable held for sale and
  mortgage-backed securities available for sale, net......        6,152       10,738        1,772        1,645          710
Cash equivalents and securities...........................      115,607       70,931       35,423       51,017       23,576
Deposits..................................................      480,532      440,982      331,242      344,229      288,270
FHLB advances and notes payable...........................      185,867      114,974       66,041       47,384       49,715
Stockholders' equity......................................       48,006       42,900       38,856       31,209       26,273
Number of:
   Real estate loans outstanding..........................        4,431        4,160        3,527        2,676        2,648
   Savings accounts.......................................       30,567       28,915       24,346       25,122       23,190
   Offices ...............................................           12           11           10           10            9
</TABLE>


OPERATING DATA:
<TABLE>
<CAPTION>
                                                                                Year Ended June 30,
                                                          ----------------------------------------------------------------------
                                                           2001             2000             1999             1998        1997
                                                          -------          -------          -------          -------     -------
<S>                                                       <C>              <C>              <C>              <C>         <C>
(dollars in thousands except for earnings per share)

Interest income                                           $53,962          $42,026          $35,347          $34,365     $30,963
Interest expense                                           34,118           23,972           19,863           19,558      16,561
                                                          -------          -------          -------          -------     -------
Net interest income
  before provision for loan losses                         19,844           18,054           15,484           14,807      14,402
Provision for loan losses                                     225              850                0              246         187
                                                          -------          -------          -------          -------     -------
Net interest income
  after provision for loan losses                          19,619           17,204           15,484           14,561      14,215
Non-interest income                                         2,600            2,681            5,435            1,597       1,336
Non-interest expense                                       12,218           10,410            9,649            8,851      10,000
                                                          -------          -------          -------          -------     -------
Income before federal income taxes                         10,001            9,475           11,270            7,307       5,551
Federal income taxes                                        3,365            3,163            3,551            2,379       1,904
Net income                                                $ 6,636          $ 6,312          $ 7,719          $ 4,928     $ 3,647

Basic earnings per share                                  $  1.27          $  1.20          $  1.45          $  0.94     $  0.71

Diluted earnings per share                                $  1.23          $  1.16          $  1.40          $  0.90     $  0.67
</TABLE>



                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT




                                       6
<PAGE>   9

OTHER DATA:
<TABLE>
<CAPTION>
                                                                       At or For the Year Ended June 30,
                                                -------------------------------------------------------------------------------
                                                  2001              2000              1999              1998              1997
                                                -------           -------           -------           -------           -------
<S>                                                <C>               <C>               <C>               <C>               <C>
Return on average assets                           1.00%             1.21%             1.77%             1.23%             1.04%
Return on average equity                          14.62%            15.45%            22.21%            17.11%            15.19%

Interest rate spread information:
  Average during year                              2.75%             3.21%             3.26%             3.38%             3.84%
Net interest margin                                3.09%             3.59%             3.68%             3.78%             4.22%

Average interest-earning assets to
  average interest-bearing liabilities           106.45%           107.98%           108.92%           107.93%           107.93%
Non-accruing loans (> 90 days) and
  repossessed assets to total assets               0.91%             0.87%             0.85%             0.92%             1.11%
Stockholders' equity to total assets               6.52%             7.00%             8.65%             7.20%             7.04%
Ratio of average equity to
  average assets                                   6.79%             7.80%             7.95%             7.18%             6.84%
Dividend payout ratio                             20.78%            21.77%             0.00%             0.00%             0.00%



BANK REGULATORY CAPITAL RATIOS:

Ratio of tangible capital to
  adjusted total assets                            6.46%             6.68%             7.99%             7.21%             7.34%
Ratio of core capital to
  adjusted total assets                            6.46%             6.68%             7.99%             7.21%             7.34%
Ratio of Tier-1 risk-based capital to
  risk-weighted assets                             9.56%             9.24%            10.43%            10.11%             9.70%
Ratio of risk-based capital to
  risk-weighted assets                            10.26%            10.00%            11.17%            10.93%            10.62%
</TABLE>


                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT



                                       7
<PAGE>   10


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS


GENERAL

PVF Capital Corp. ("PVF" or the "Company") owns and operates Park View Federal
Savings Bank ("Park View Federal" or the "Bank"), its principal and wholly-owned
subsidiary, PVF Service Corporation, a wholly-owned real estate subsidiary, and
Mid-Pines Land Co., a wholly-owned real estate subsidiary. Park View Federal has
12 offices located in Cleveland and surrounding communities, including recently
opened branches in North Royalton, Medina, Solon, and Shaker Heights, Ohio. The
Bank's principal business consists of attracting deposits from the general
public through its branch offices and investing these funds in loans secured by
first mortgages on real estate located in its market area, which consists of
Portage, Lake, Geauga, Cuyahoga, Summit, Stark, Medina, and Lorain Counties in
Ohio. The Bank has concentrated its activities on serving the borrowing needs of
local homeowners and builders in its market area by originating both fixed-rate
and adjustable-rate single-family mortgage loans, as well as construction loans,
commercial real estate loans, and multi-family residential real estate loans. In
addition, to a lesser extent, the Bank originates loans secured by second
mortgages, including equity line of credit loans secured by real estate and
loans secured by savings deposits. Lending activities are influenced by the
demand for and supply of housing, competition among lenders, the level of
interest rates, and the availability of funds. Deposit flows and cost of funds
are influenced by prevailing market rates of interest, primarily on competing
investments, account maturities, and the level of personal income and savings in
the market area.

FORWARD-LOOKING STATEMENTS

When used in this Annual Report, the words or phrases "will likely result," "are
expected to," "will continue," "is anticipated," "estimate," "project," or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties including changes in
economic conditions in the Company's market area, changes in policies by
regulatory agencies, fluctuations in interest rates, demand for loans in the
Company's market area, and competition that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ materially from any opinions or statements expressed
with respect to future periods in any current statements.

The Company does not undertake, and specifically disclaims any obligation, to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.

OVERVIEW OF FINANCIAL CONDITION
AT JUNE 30, 2001, 2000, AND 1999

PVF had total assets of $736.5 million, $613.0 million, and $449.2 million at
June 30, 2001, 2000, and 1999, respectively. The primary source of the Bank's
increase in total assets has been its loan portfolio. Net loans receivable and
mortgage-backed securities totaled $597.9 million, $525.6 million, and $399.1
million at June 30, 2001, 2000, and 1999, respectively. The increase of $72.3
million in net loans and mortgage-backed securities at June 30, 2001 resulted
primarily from increases in mortgage-backed securities of $16.9 million, real
estate development loans of $17.2 million, commercial real estate loans of $10.5
million, equity line of credit loans of $9.8 million, construction loans of $9.7
million, and one-to-four family residential loans of $5.3 million. The increase
in mortgage-backed securities resulted from the Bank's swapping of adjustable
one-to-four family mortgage loans with Freddie Mac for mortgage-backed
securities. In addition, securities totaled $50.2 million, $65.3 million, and
$25.3 million, and cash and cash equivalents totaled $65.4 million, $5.7
million, and $10.0 million at June 30, 2001, 2000, and 1999, respectively. The
increase in cash and cash equivalents of $59.7 million at June 30, 2001 was
primarily attributable to the maturity of a security for $50.0 million at the
end of the year. The increase of $72.3 million in net loans and mortgage-backed
securities and $59.7 million

                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT


                                       8
<PAGE>   11


in cash and cash equivalents were funded by increases of $70.9 million and $39.6
million in Federal Home Loan Bank ("FHLB") advances and deposits, respectively,
and a decrease of $15.0 million in securities.

The securities portfolio has been and will continue to be used primarily to meet
the liquidity requirements of the Bank in its deposit taking and lending
activities. The Bank has adopted a policy that permits investment only in U.S.
government and agency securities or Triple-A-rated securities. The Bank invests
primarily in securities having a final maturity of five years or less, federal
funds sold, and deposits at the FHLB of Cincinnati. The entire portfolio matures
within five years or less, and the Bank has no plans to change the short-term
nature of its securities portfolio.

The Bank's deposits totaled $480.5 million, $441.0 million, and $331.2 million
at June 30, 2001, 2000, and 1999, respectively. Advances from the FHLB of
Cincinnati amounted to $185.9 million, $115.0 million, and $66.0 million at June
30, 2001, 2000, and 1999, respectively. Management's decision to borrow
utilizing attractive FHLB advance rates and to aggressively compete with market
savings rates resulted in increases in FHLB advances of $70.9 million and
savings deposits of $39.6 million for the year ended June 30, 2001.

CAPITAL
PVF's stockholders' equity totaled $48.0 million, $42.9 million, and $38.9
million at the years ended June 30, 2001, 2000, and 1999, respectively. The
increases were the result of the retention of net earnings.

The Bank's primary regulator, The Office of Thrift Supervision ("OTS") has
implemented a statutory framework for capital requirements which establishes
five categories of capital strength, ranging from "well capitalized" to
"critically undercapitalized." An institution's category depends upon its
capital level in relation to relevant capital measures, including two risk-based
capital measures, a tangible capital measure, and a core/leverage capital
measure. At June 30, 2001, the Bank was in compliance with all of the current
applicable regulatory capital measurements to meet the definition of a
well-capitalized institution, as demonstrated in the following table:


                           Park View              Requirement for
                            Federal  Percent of   Well-Capitalized
(dollars in thousands)      Capital   Assets (1)   Institution
                           ---------------------------------------
GAAP capital                 $47,698     6.49%           N/A

Tangible capital             $47,489     6.46%           N/A

Core capital                 $47,489     6.46%          5.00%

Tier-1 risk-based capital    $47,489     9.56%          6.00%

Risk-based capital           $50,984    10.26%         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.

COMMON STOCK AND DIVIDENDS

      The Company's common stock trades under the symbol "PVFC" on the Nasdaq
Small-Cap Market. A 10 percent stock dividend was issued in September 1997, a
three- for-two stock split effected in the form of a dividend was issued in
August 1998, a 10 percent stock dividend was issued in September 1999, a 10
percent stock dividend was issued in September 2000, and a 10 percent stock
dividend was issued in August 2001. As adjusted to reflect all stock dividends
and all stock splits, the Company had 5,337,029 shares of common stock
outstanding and approximately 324 holders of record of the common stock at
September 11, 2001. OTS regulations applicable to all Federal Savings Banks such
as Park View Federal limit the dividends that may be paid by the Bank to PVF.
Any dividends paid may not reduce the Bank's capital below minimum regulatory
requirements.

      In June 1999, the Company announced a stock repurchase program to acquire
up to 5 percent of the Company's common stock and a quarterly cash dividend
policy. In April 2001, this program was renewed for an additional 12 months. The
stock repurchase program is dependent on market conditions with no guarantee as
to the exact number of shares to be repurchased. At June 30, 2001, the Company
had acquired 123,857 shares, or 2.3 percent, of the Company's common stock. The
cash dividend policy remains dependent upon the Company's financial condition,
earnings, capital needs, regulatory requirements, and economic conditions.
Beginning in the first quarter of fiscal 2000, a quarterly cash dividend of
$0.072 per share has been paid on the Company's outstanding common stock.

                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT


                                       9
<PAGE>   12



      The following table sets forth certain information as to the range of the
high and low bid prices for the Company's common stock for the calendar quarters
indicated. (1)

                          Fiscal 2001         Fiscal 2000
                      High Bid   Low Bid   High Bid  Low Bid
                      ------------------   -----------------
Fourth Quarter         $10.23     $8.79     $ 8.26  $ 5.78
Third Quarter            9.09      8.18       9.40    6.82
Second Quarter           9.32      7.73      10.95    9.40
First Quarter            9.43      7.44      10.85   10.02

(1) Quotations reflect inter-dealer prices, without retail mark-up, mark-down,
or commission, and may not represent actual transactions. Bid prices have been
adjusted to reflect the previously described stock dividends and stock splits.


LIQUIDITY AND CAPITAL RESOURCES

The Company's liquidity measures its ability to fund loans and meet withdrawals
of deposits and other cash outflows in a cost-effective manner. The Company's
primary sources of funds for operations are deposits from its primary market
area, principal and interest payments on loans and mortgage-backed securities,
sales of loans and mortgage-backed securities, proceeds from maturing
securities, and advances from the FHLB of Cincinnati. While loan and
mortgage-backed securities payments and maturing securities are relatively
stable sources of funds, deposit flows and loan prepayments are greatly
influenced by prevailing interest rates, economic conditions, and competition.
FHLB advances may be used on a short-term basis to compensate for deposit
outflows or on a long-term basis to support expanded lending and investment
activities.

The Bank uses its capital resources principally to meet its ongoing commitment
to fund maturing certificates of deposit and deposit withdrawals, repay
borrowings, fund existing and continuing loan commitments, maintain its
liquidity, and meet operating expenses. At June 30, 2001, the Bank had
commitments to originate loans totaling $55.9 million and had $53.8 million of
undisbursed loans in process. Scheduled maturities of certificates of deposit
during the 12 months following June 30, 2001 totaled $291.1 million. Management
believes that a significant portion of the amounts maturing during fiscal 2001
will be reinvested with the Bank because they are retail deposits, however, no
assurances can be made that this will occur.

Park View Federal maintains liquid assets sufficient to meet operational needs.
The Bank's most liquid assets are cash and cash equivalents, which are
short-term, highly-liquid investments with original maturities equal to or less
than three months that are readily convertible to known amounts of cash. The
levels of such assets are dependent upon the Bank's operating, financing, and
investment activities at any given time. Management believes that the liquidity
levels maintained are more than adequate to meet potential deposit outflows,
repay maturing FHLB advances, fund new loan demand, and cover normal operations.
Park View Federal's daily liquidity ratio at June 30, 2001 was 14.67 percent.

MARKET RISK MANAGEMENT

Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, exchange rates, and
equity prices. The Bank's market risk is composed of interest rate risk.

Asset/Liability Management: The Bank's asset and liability committee ("ALCO"),
which includes senior management representatives, monitors and considers methods
of managing the rate sensitivity and repricing characteristics of the balance
sheet components consistent with maintaining acceptable levels of changes in net
portfolio value ("NPV") and net interest income. Park View Federal's asset and
liability management program is designed to minimize the impact of sudden and
sustained changes in interest rates on NPV and net interest income.


PROFILE OF INTEREST SENSITIVE ASSETS

[PIE GRAPH]

7.3%  Investment securities 60 months or less

0.9%  Consumer loans

31.4% Adjustable-rate other mortgage loans

2.4%  Adjustable-rate mortgage-backed securities

7.9%  Overnight Fed funds

41.6% Adjustable-rate single-family mortgage loans

3.5%  Fixed-rate other mortgage loans

5.0%  Fixed-rate single-family mortgage loans


                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT


                                       10
<PAGE>   13



                    PROFILE OF INTEREST SENSITIVE LIABILITIES

[PIE GRAPH]

0.6%  Other borrowings 24 months or less

9.9%  FHLB Advances 12 months or less

4.7%  Passbook accounts

6.2%  Transaction accounts

1.5%  CDs over 36 months

13.4% CDs 13 to 24 months

18.4% FHLB Advances over 13 months

44.2% CDs 12 months or less

1.1%  CDs 25 to 36 months

The Bank's exposure to interest rate risk is reviewed on a quarterly basis by
the Board of Directors and the ALCO. Exposure to interest rate risk is measured
with the use of interest rate sensitivity analysis to determine the Bank's
change in NPV in the event of hypothetical changes in interest rates, while
interest rate sensitivity gap analysis is used to determine the repricing
characteristics of the Bank's assets and liabilities. If estimated changes to
NPV and net interest income are not within the limits established by the Board,
the Board may direct management to adjust its asset and liability mix to bring
interest rate risk within Board-approved limits.

In order to reduce the exposure to interest rate fluctuations, the Bank has
developed strategies to manage its liquidity, shorten its effective maturity,
and increase the interest rate sensitivity of its asset base. Management has
sought to decrease the average maturity of its assets by emphasizing the
origination of adjustable-rate residential mortgage loans and adjustable-rate
mortgage loans for the acquisition, development, and construction of residential
and commercial real estate, all of which are retained by the Bank for its
portfolio. In addition, all long-term, fixed-rate mortgages are underwritten
according to guidelines of the Federal Home Loan Mortgage Corporation ("FHLMC")
and the Federal National Mortgage Association ("FNMA") and are either swapped
with the FHLMC and the FNMA in exchange for mortgage-backed securities secured
by such loans which are then sold in the market or sold directly for cash in the
secondary market.

Interest rate sensitivity analysis is used to measure the Bank's interest rate
risk by computing estimated changes in NPV of its cash flows from assets,
liabilities, and off-balance sheet items in the event of a range of assumed
changes in market interest rates. NPV represents the market value of portfolio
equity and is equal to the market value of assets minus the market value of
liabilities, with adjustments made for off-balance sheet items. This analysis
assesses the risk of loss in market risk sensitive instruments in the event of
an immediate and sustained 1 and 2 percent increase or decrease in market
interest rates. The Bank's Board of Directors has adopted an interest rate risk
policy which establishes maximum decreases in the NPV ratio (ratio of market
value of portfolio equity to the market value of portfolio assets) of 0.5 and
1.0 percent in the event of an immediate and sustained 1 and 2 percent increase
or decrease in market interest rates. The following table presents the Bank's
projected change in NPV for the various rate shock levels at June 30, 2001 and
2000. All market risk sensitive instruments presented in this table are held to
maturity or available for sale. The Bank has no trading securities.

<TABLE>
<CAPTION>
(dollars in thousands)                 June 30, 2001                                 June 30, 2000
                             -------------------------------------         -------------------------------------
           Change in         Market Value of     Dollar      NPV           Market Value of     Dollar      NPV
         Interest Rates      Portfolio Equity    Change      Ratio         Portfolio Equity    Change      Ratio
         --------------      ----------------    ------      -----         ----------------    ------      -----
<S>                          <C>            <C>           <C>              <C>            <C>           <C>
              +2%               $ 54,695       $(12,267)     7.35%            $ 35,620       $ (9,520)     5.95%
              +1%                 61,312         (5,650)     8.15               40,781         (4,359)     6.72
               0                  66,962                     8.80               45,140                     7.35
              -1%                 68,323          1,361      8.93               48,372          3,232      7.79
              -2%                 67,227            265      8.73               50,586          5,446      8.08
</TABLE>

                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT



                                       11
<PAGE>   14


The table illustrates that at June 30, 2001, in the event of an immediate and
sustained increase in prevailing market interest rates, the Bank's NPV ratio
would be expected to decrease, while an immediate and sustained decrease in
market interest rates had little impact on the Bank's NPV ratio. While at June
30, 2000, in the event of an immediate and sustained increase in prevailing
market interest rates, the Bank's NPV ratio would be expected to decrease, while
in the event of an immediate and sustained decrease in prevailing market rates,
the Bank's NPV ratio would be expected to increase. The Bank carefully monitors
the maturity and repricing of its interest-earning assets and interest-bearing
liabilities to minimize the effect of changing interest rates on its NPV. At
June 30, 2001, the Bank's estimated changes in NPV ratio were within the targets
established by the Board of Directors in the event of an immediate and sustained
decrease in prevailing market interest rates, but exceeded Board-approved target
levels in an increasing interest rate environment. The Bank's interest rate risk
("IRR") position currently exceeds Board-approved target levels in an increasing
interest rate environment because of the maturity and repricing characteristics
of assets and liabilities added to the balance sheet during the past year. The
significant growth of the balance sheet, $123.5 million, was accomplished with
the addition of interest-earning assets having a maturity and repricing period
of from three to five years. These assets were funded utilizing interest-bearing
liabilities having a final maturity of two years or less and advances
convertible at the option of the FHLB of Cincinnati. Management will carefully
monitor its IRR position and will make the necessary adjustments to its asset
and liability mix to bring the Bank's NPV ratio to within target levels
established by the Board of Directors.

NPV is calculated by the OTS using information provided by the Bank. The
calculation is based on the net present value of discounted cash flows utilizing
market prepayment assumptions and market rates of interest provided by Bloomberg
quotations and surveys performed during the quarters ended June 30, 2001 and
2000, with adjustments made to reflect the shift in the Treasury yield curve
between the survey date and the quarter-end date.

Computation of prospective effects of hypothetical interest rate changes are
based on numerous assumptions, including relative levels of market interest
rates, loan prepayments, and deposit decay, and should not be relied upon as
indicative of actual results. Further, the computations do not contemplate any
actions the Bank may undertake in response to changes in interest rates.

Certain shortcomings are inherent in the method of analysis presented in the
computation of NPV. Actual values may differ from those projections set forth in
the table, should market conditions vary from assumptions used in the
preparation of the table. Certain assets, such as adjustable-rate loans, which
represent the Bank's primary loan product, have features which restrict changes
in interest rates on a short-term basis and over the life of the asset. In
addition, the proportion of adjustable-rate loans in the Bank's portfolio could
decrease in future periods if market interest rates remain at or decrease below
current levels due to refinance activity. Further, in the event of a change in
interest rates, prepayment and early withdrawal levels would likely deviate
significantly from those assumed in the table. Finally, the ability of many
borrowers to repay their adjustable-rate debt may decrease in the event of an
interest rate increase.

The Bank uses interest rate sensitivity gap analysis to monitor the relationship
between the maturity and repricing of its interest-earning assets and
interest-bearing liabilities, while maintaining an acceptable interest rate
spread. Interest rate sensitivity gap is defined as the difference between the
amount of interest-earning assets maturing or repricing within a specific time
period and the amount of interest-bearing liabilities maturing or repricing
within that time period. A gap is considered positive when the amount of
interest-rate-sensitive assets exceeds the amount of interest-rate-sensitive
liabilities, and is considered negative when the amount of
interest-rate-sensitive liabilities exceeds the amount of
interest-rate-sensitive assets. Generally, during a period of rising interest
rates, a negative gap would adversely affect net interest income, while a
positive gap would result in an increase in net interest income. Conversely,
during a period of falling interest rates, a negative gap would result in an
increase in net interest income, while a positive gap would negatively affect
net interest income. Management's goal is to maintain a reasonable balance
between exposure to interest rate fluctuations and earnings.

The following table summarizes the Bank's interest rate sensitivity gap analysis
at June 30, 2001. The table indicates that the Bank's one year and under ratio
of cumulative gap to total assets is negative 0.2 percent, one-to-three year
ratio of cumulative gap to total assets is

                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT



                                       12
<PAGE>   15

0.7 percent, and three-to-five year ratio of cumulative gap to total assets is
positive 16.8 percent. The well-balanced three-year and under cumulative gap
position of the Bank explains the change in the Bank's NPV ratio to an immediate
and sustained 1 and 2 percent increase in market interest rates.

<TABLE>
<CAPTION>
                                                                                                   Greater than
                                                                   Within        1-3         3-5         5
(dollars in thousands)                                             1 Year       Years       Years       Years       Total
-------------------------------------------------------------------------------------------------------------------------
<S>                                                               <C>         <C>         <C>         <C>         <C>
Total interest-rate-sensitive assets.........................     $354,695    $149,656    $143,320    $ 57,710    $705,381
Total interest-rate-sensitive liabilities....................      356,120     143,313      24,717     134,366     658,516
Periodic GAP.................................................       (1,425)      6,343     118,603     (76,656)     46,865
Cumulative GAP...............................................       (1,425)      4,918     123,521      46,865
Ratio of cumulative GAP to total assets......................         (0.2)%       0.7%       16.8%        6.4%
</TABLE>

RESULTS OF OPERATIONS


GENERAL

PVF Capital Corp.'s net income for the year ended June 30, 2001 was $6.6
million, or $1.27 basic earnings per share and $1.23 diluted earnings per share
as compared to $6.3 million, or $1.20 basic earnings per share and $1.16 diluted
earnings per share for fiscal 2000, and $7.7 million, or $1.45 basic earnings
per share and $1.40 diluted earnings per share for fiscal 1999. All per share
amounts have been adjusted for stock dividends and stock splits.

Net income for the current year increased by $0.3 million from the prior fiscal
year and was $1.1 million less than net income for fiscal 1999. In fiscal 1999,
the Company recorded an after-tax gain of approximately $2.5 million as a result
of the closing on the sale by PVF Service Corporation of its 250-acre parcel of
land in Solon, Ohio.

NET INTEREST INCOME

Net interest income amounted to $19.8 million for the year ended June 30, 2001,
as compared to $18.1 million and $15.5 million for the years ended June 30, 2000
and 1999, respectively. Changes in the level of net interest income reflect
changes in interest rates and changes in volume of interest-earning assets and
interest-bearing liabilities. Tables 1 and 2 provide information as to changes
in the Bank's net interest income.

Table 1 sets forth certain information relating to the Bank's average
interest-earning assets (loans and securities) and interest-bearing liabilities
(deposits and borrowings) and reflects the average yield on assets and average
cost of liabilities for the periods and at the dates indicated. Such yields and
costs are derived by dividing interest income or interest expense by the average
daily balance of assets or liabilities, respectively, for the periods presented.
During the periods indicated, non-accrual loans are included in the net loan
category.

Table 1 also presents information for the periods indicated with respect to the
difference between the weighted-average yield earned on interest-earning assets
and weighted-average rate paid on interest-bearing liabilities, or "interest
rate spread," which savings institutions have traditionally used as an indicator
of profitability. Another indicator of an institution's net interest income is
its "net interest margin" or "net yield on interest-earning assets," which is
its net interest income divided by the average balance of net interest-earning
assets. Net interest income is affected by the interest rate spread and by the
relative amounts of interest-earning assets and interest-bearing liabilities.



                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT



                                       13
<PAGE>   16

Table 1

<TABLE>
<CAPTION>

                                                   AVERAGE BALANCES, INTEREST AND AVERAGE YIELDS AND RATES
                                                                  FOR THE YEAR ENDED JUNE 30,



                                                                  2001                              2000
                                                  ----------------------------------------------------------
                                                   Average                    Yield/   Average
(dollars in thousands)                             Balance      Interest      Cost     Balance     Interest
                                                  --------     --------       ----     --------    --------
<S>                                               <C>          <C>            <C>      <C>         <C>
Interest-earning assets:
  Loans.........................................  $551,424     $ 48,101       8.72%    $448,163    $ 38,390
  Mortgage-backed securities....................    16,059        1,189       7.40        1,401          90
  Securities and other interest-earning assets..    74,046        4,672       6.31       53,808       3,546
                                                  --------     --------                --------    --------
       Total interest-earning assets............   641,529       53,962       8.41      503,372      42,026
                                                               --------                            --------
  Non-interest-earning assets...................    26,786                               20,251
                                                    ------                               ------
       Total assets.............................  $668,315                             $523,623
                                                  ========                             ========

Interest-bearing liabilities:
  Deposits......................................  $480,692     $ 27,080       5.63     $386,242    $ 19,409
  FHLB advances.................................   117,624        6,682       5.68       79,862       4,558
  Notes payable.................................     4,331          356       8.22           53           5
                                                  --------     --------                --------      ------
       Total interest-bearing liabilities.......   602,647       34,118       5.66      466,157      23,972
                                                               --------       ----                   ------
  Non-interest-bearing liabilities..............    20,267                               16,604
                                                    ------                               ------
       Total liabilities........................   622,914                              482,761

Stockholders' equity............................    45,401                               40,862
                                                    ------                               ------
       Total liabilities and
             stockholders' equity...............  $668,315                             $523,623
                                                  ========                             ========
Net interest income.............................                $ 19,844                           $ 18,054
                                                                ========                           ========
Interest rate spread............................                              2.75%
                                                                              ====
Net yield on interest-earning assets............                              3.09%
                                                                              ====
Ratio of average interest-earning assets
  to average interest-bearing liabilities.......    106.43%                              107.98%
                                                    ======                               ======


                                              AVERAGE BALANCES, INTEREST AND AVERAGE YIELDS AND RATES
                                                               FOR THE YEAR ENDED JUNE 30,
                                                                      1999
                                                 ---------------------------------------------------
                                                   Yield/     Average                       Yield/
(dollars in thousands)                              Cost      Balance     Interest           Cost
                                                    ----     --------     --------           ----
<S>                                                 <C>      <C>          <C>                <C>
Interest-earning assets:
  Loans...........................................  8.57%    $384,420     $ 33,146           8.62%
  Mortgage-backed securities......................  6.42        2,338          147           6.29
  Securities and other interest-earning assets....  6.59       34,500        2,054           5.95
                                                             --------     --------
       Total interest-earning assets..............  8.35      421,258       35,347           8.39
                                                                          --------
  Non-interest-earning assets.....................             16,071
                                                               ------
       Total assets...............................           $437,329
                                                             ========

Interest-bearing liabilities:
  Deposits........................................  5.03     $334,530     $ 16,961           5.07
  FHLB advances...................................  5.71       52,102        2,891           5.55
  Notes payable...................................  9.50          122           11           9.02
                                                             --------     --------
       Total interest-bearing liabilities.........  5.14      386,754       19,863           5.14
                                                    ----                  --------           ----
  Non-interest-bearing liabilities................             15,818
                                                               ------
       Total liabilities..........................            402,572

Stockholders' equity..............................             34,757
                                                               ------
       Total liabilities and
             stockholders' equity.................           $437,329
                                                             ========
Net interest income...............................                         $15,484
                                                                           =======
Interest rate spread..............................  3.21%                                    3.26%
                                                    ====                                     ====
Net yield on interest-earning assets..............  3.59%                                    3.68%
                                                    ====                                     ====
Ratio of average interest-earning assets
  to average interest-bearing liabilities.........             108.92%
                                                               ======
</TABLE>

Table 2 illustrates the extent to which changes in interest rates and shifts in
the volume of interest-related assets and liabilities have affected the Bank's
interest income and expense during the years indicated. The table shows the
changes by major component, distinguishing between changes relating to volume
(changes in average volume multiplied by average old rate) and changes relating
to rate (changes in average rate multiplied by average old volume). Changes not
solely attributable to volume or rate have been allocated in proportion to the
changes due to volume and rate.

As is evidenced by these tables, interest rate changes had a slightly positive
effect on the Bank's net interest income for the year ended June 30, 2000, and
unfavorably affected the Bank's net interest income for the year ended June 30,
2001. Due to the repricing characteristics of the Bank's loan portfolio and
short-term nature of its deposit portfolio, along with declining interest rates
during much of the year ended June 30, 2001 and a relatively flat yield curve
during much of the year ended June 30, 2000, the Bank experienced a decrease of
46 basis points in its interest rate spread to 2.75 percent for fiscal 2001 from
3.21 percent for fiscal 2000, and during fiscal 2000 its interest rate spread
decreased 5 basis points from 3.26 percent for fiscal 1999. These changes in
average interest rate spread contributed to a decrease in net interest income
for the year ended June 30, 2001 of $1.7 million, and a slight increase in net
interest income for the year ended June 30, 2000 of $48,000 due to interest rate
changes.

Net interest income was favorably affected by volume changes during the years
ended June 30, 2001 and 2000. Accordingly, net interest income grew by $3.5
million and $2.5 million due to volume changes for the years ended June 30, 2001
and 2000, respectively.

The rate/volume analysis illustrates the effect that volatile interest rate
environments can have on a financial institution. Increasing interest rates or a
flattening yield curve will both have a negative effect on net interest income,
while decreasing interest rates or a steepening yield curve will both have a
positive effect on net interest income.


                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT


                                       14
<PAGE>   17

<Table>
<Caption>
      Table 2                                                           YEAR ENDED JUNE 30,
                                                  -----------------------------------------------------------------
                                                   2001        vs.       2000       2000         vs.         1999
                                                  ------------------------------    -------------------------------
                                                      Increase (Decrease)              Increase (Decrease)
                                                             Due to                            Due to
                                                  ------------------------------    -------------------------------
      (dollars in thousands)                      Volume      Rate        Total     Volume       Rate        Total
                                                  -------    -------     -------    -------     -------     -------
<S>                                               <C>        <C>         <C>        <C>         <C>         <C>
Interest income:
  Loans.......................................... $ 9,006    $   704     $ 9,710    $ 5,460     $  (216)    $ 5,244
  Mortgage-backed securities.....................   1,086         14       1,100        (60)          3         (57)
  Securities and other interest-earning assets...   1,241       (115)      1,126      1,297         195       1,492
                                                  -------    -------     -------    -------     -------     -------
      Total interest-earning assets..............  11,333        603      11,936      6,697         (18)      6,679
                                                  -------    -------     -------    -------     -------     -------
Interest expense:
  Deposits.......................................   5,321      2,350       7,671      2,599        (151)      2,448
  FHLB advances..................................   2,144        (22)      2,122      1,582          84       1,666
  Notes payable..................................     352          1         353         (6)          1          (5)
                                                  -------    -------     -------    -------     -------     -------
      Total interest-bearing liabilities.........   7,817      2,329      10,146      4,175         (66)      4,109
                                                  -------    -------     -------    -------     -------     -------
Net interest income.............................. $ 3,516    $(1,726)    $ 1,790    $ 2,522     $    48     $ 2,570
                                                  =======    =======     =======    =======     =======     =======
</TABLE>



PROVISION FOR LOAN LOSSES

The Bank carefully monitors its loan portfolio and establishes levels of
unallocated and specific reserves for loan losses. Provisions for loan losses
are charged to earnings to bring the total allowances for loan losses to a level
considered adequate by management to provide for probable loan losses inherent
in the loan portfolio as of each balance sheet date, based on prior loss
experience, volume and type of lending conducted by the Bank, industry
standards, and past due loans in the Bank's loan portfolio. The Bank's policies
require the review of assets on a regular basis, and the Bank appropriately
classifies loans as well as other assets if warranted. The Bank establishes
specific provisions for loan losses when a loan is deemed to be uncollectible in
an amount equal to the net book value of the loan or to any portion of the loan
deemed uncollectible. A loan that is classified as either substandard or
doubtful is assigned an allowance based upon the specific circumstances on a
loan-by-loan basis after consideration of the underlying collateral and other
pertinent economic and market conditions. In addition, the Bank maintains
unallocated allowances based upon the establishment of a risk category for each
type of loan in the Bank's portfolio.

The Bank uses a systematic approach in determining the adequacy of its loan loss
allowance and the necessary provision for loan losses, whereby the loan
portfolio is reviewed generally and delinquent loan accounts are analyzed
individually, on a monthly basis. Consideration is given primarily to the types
of loans in the portfolio and the overall risk inherent in the portfolio as well
as, with respect to individual loans, account status, payment history, ability
to repay and probability of repayment, and loan-to-value percentages. After
reviewing current economic conditions, changes in delinquency status, and actual
loan losses incurred by the Bank, management establishes an appropriate reserve
percentage applicable to each category of loans, and a provision for loan losses
is recorded when necessary to bring the allowance to a level consistent with
this analysis. During the year ended June 30, 2000, management conducted a
review of the established reserve percentages used in calculating the required
loan loss allowance. This review was conducted using the most currently
available national and regional aggregate thrift industry data on charge-offs
along with an analysis of historical losses experienced by the Bank according to
type of loan. As a result of this analysis, management made moderate adjustments
to the required reserve percentages on various loan categories to more
accurately reflect probable losses. Management believes it uses the best
information available to make a determination with respect to the allowance for
loan losses, recognizing that future adjustments may be necessary depending upon
a change in economic conditions.

During 2001, the Bank experienced growth in the loan portfolio of $55.4 million,
or 10.6 percent, while maintaining the composition of the loan portfolio. In

                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT


                                       15
<PAGE>   18


addition, the level of impaired loans increased from $4.8 million to $5.4
million, while allowance related to impaired loans increased from $1,000 to
$25,000. The decrease in the level of impaired loans to total loans caused the
percentage of allowance for loan losses to impaired loans to decrease from 70 to
65 percent. Net charge-offs increased from $92,000 in 2000 to $93,000 in 2001.
Therefore, taking into consideration the growth of the portfolio, the higher
level of impaired loans, as well as net charge-offs and the overall performance
of the portfolio, the Bank provided $225,000 of additional provision to maintain
the allowance at a level deemed appropriate of $3.5 million.

During 2000, the Bank experienced growth in the loan portfolio of $127.1
million, or 32 percent, while maintaining the composition of the loan portfolio.
In addition, the level of impaired loans increased from $3.6 million to $4.8
million, while allowance related to impaired loans decreased from $55,000 to
$1,000. The decrease in the level of impaired loans to total loans caused the
percentage of allowance for loan losses to impaired loans to decrease from 72 to
70 percent. Net charge-offs increased from $57,000 in 1999 to $92,000 in 2000.
Therefore, taking into consideration the growth of the portfolio, the higher
level of impaired loans, as well as the higher level of net charge-offs and the
overall performance of the portfolio, the Bank provided $850,000 of additional
provision to maintain the allowance at a level deemed appropriate of $3.4
million.

NON-INTEREST INCOME

Non-interest income amounted to $2.6 million, $2.7 million, and $5.4 million for
the years ended June 30, 2001, 2000, and 1999, respectively. The fluctuations in
non-interest income are due primarily to fluctuations in income derived from
mortgage banking activities, fee income on deposit accounts, gain on sale of
real estate, and rental income. Income attributable to mortgage banking
activities consists of loan servicing income, gains and losses on the sale of
loans and mortgage-backed securities, and market valuation provisions and
recoveries. Income from mortgage banking activities amounted to $1,135,000,
$718,000, and $1,023,000 for the years ended June 30, 2001, 2000, and 1999,
respectively. The increase in income from mortgage banking activities of
$417,000 from the year ended June 30, 2000 to 2001 is primarily due to an
increase in net profit realized on the sale of loans. The decrease in income
from mortgage banking activities of $305,000 from the year ended June 30, 1999
to 2000 is primarily due to a decrease in net profit realized on the sale of
loans. Gain on the sale of real estate amounted to $301,000, $207,000, and
$3,800,000 for the years ended June 30, 2001, 2000, and 1999, respectively.
Other non-interest income amounted to $1,164,000, $1,755,000, and $611,000 for
the years ended June 30, 2001, 2000, and 1999, respectively. The decrease in
other non-interest income of $591,000 from the year ended June 30, 2000 to June
30, 2001 is attributable to insurance proceeds of $672,000 received in 2000
offset by an increase in service and other fees of $80,000 in 2001. The increase
in other non-interest income of $1.1 million from the year ended June 30, 1999
to June 30, 2000 is primarily due to an insurance payment of $672,000 for legal
costs previously incurred relating to the settlement of a lawsuit by PVF
Holdings, Inc., a wholly-owned subsidiary of PVF Capital Corp. In addition,
rental income increased by $220,000, and gain on the disposal of real estate
owned properties increased by $161,000 in the year ended June 30, 2000. Changes
in other non-interest income are typically the result of service and other
miscellaneous fee income, rental income, insurance proceeds, income realized on
the sale of assets and investments, and the disposal of real estate owned
properties.

NON-INTEREST EXPENSE

Non-interest expense amounted to $12.2 million, $10.4 million, and $9.6 million
for the years ended June 30, 2001, 2000, and 1999, respectively. The principal
component of non-interest expense is compensation and related benefits which
amounted to $6.5 million, $5.7 million, and $4.8 million for the years ended
June 30, 2001, 2000, and 1999, respectively. The increase in compensation for
the years ended June 30, 2001 and 2000 is due primarily to growth in the staff,
the opening of a new branch in fiscal 2001, employee 401K benefits, a
compensation incentive plan for both management and loan originators, and
inflationary salary and wage adjustments to employees. Office occupancy totaled
$2.6 million, $2.0 million, and $1.8 million for the years ended June 30, 2001,
2000, and 1999, respectively. The increased occupancy expense is attributable to
the cost of opening and operating our new corporate center in Solon, Ohio,
maintenance and repairs to office buildings, the relocation of an existing
branch office, and the cost of opening and operating an additional branch
office. Other non-interest expense totaled $3.1 million, $2.7 million, and $3.0
million for the years ended June 30, 2001, 2000,


                            [LOGO] PVF CAPITAL CORP.
                               2001 ANNUAL REPORT



                                       16
<PAGE>   19



and 1999, respectively. Changes in other non-interest expense are primarily the
result of advertising, professional and legal services, regulatory and insurance
expenses, and franchise tax expense.

FEDERAL INCOME TAXES

The Company's federal income tax expense was $3.4 million, $3.2 million, and
$3.6 million for the years ended June 30, 2001, 2000, and 1999, respectively.
Due to the availability of tax credits for the years ended June 30, 2001, 2000,
and 1999, and other miscellaneous deductions, the Company's effective federal
income tax rate was below the expected tax rate of 35 percent with an effective
rate of 34, 33, and 32 percent for the years ended June 30, 2001, 2000, and
1999, respectively.

IMPACT OF INFLATION AND CHANGING PRICES

The consolidated financial statements and related data presented herein have
been prepared in accordance with generally accepted accounting principles, which
requires the measurement of financial position and operating results in terms of
historical dollars, without considering changes in the relative purchasing power
of money over time due to inflation. Unlike most industrial companies,
substantially all of the assets and liabilities of the Bank are monetary in
nature. As a result, interest rates have a more significant impact on the Bank's
performance than the effects of general levels of inflation. Interest rates do
not necessarily move in the same direction or in the same magnitude as the
prices of goods and services, since such prices are affected by inflation to a
larger extent than interest rates. For further information regarding the effect
of interest rate fluctuations on the Bank, see "Market Risk Management."

EFFECT OF NEW FINANCIAL ACCOUNTING STANDARDS

On July 20, 2001, The Financial Accounting Standards Board issued Statements No.
141, "Business Combinations" and No. 142, "Goodwill and Other Intangible
Assets." Statement 141 requires all business combinations initiated after June
30, 2001 to be accounted for using the purchase method. Poolings initiated prior
to June 30, 2001 are grandfathered. Statement 142 replaces the requirement to
amortize intangible assets with indefinite lives and goodwill with a requirement
for an impairment test. Statement 142 also requires an evaluation of intangible
assets and their useful lives and a transitional impairment test for goodwill
and certain intangible assets. After transition, the impairment tests will be
performed annually. A company must adopt Statement 142 at the beginning of the
fiscal year. PVF Capital Corp. will adopt Statement 141 as of July 1, 2001 and
Statement 142 as of January 1, 2002. Management is currently analyzing the
effect Statement 142 will have on our financial statements.


                            [LOGO] PVF CAPITAL CORP.


                                       17
<PAGE>   20


[LOGO] PARK VIEW FEDERAL
SAVINGS BANK

BOARD OF DIRECTORS

JOHN R. MALE
Chairman of the Board and
Chief Executive Officer

C. KEITH SWANEY
President, Chief Operating Officer
and Chief Financial Officer

ROBERT K. HEALEY
Retired

STANLEY T. JAROS
Partner
Moriarty & Jaros, P.L.L.

CREIGHTON E. MILLER
Partner
Miller, Stillman & Bartel

STUART D. NEIDUS
Chairman and
Chief Executive Officer
Anthony & Sylvan Pools Corporation

ROBERT F. URBAN
Retired


Officers

JOHN R. MALE
Chairman of the Board and
Chief Executive Officer

C. KEITH SWANEY
President, Chief Operating Officer
and Chief Financial Officer

JEFFREY N. MALE
Executive Vice President

ANNE M. JOHNSON
Senior Vice President
Operations

CAROL S. PORTER
Corporate Secretary and
Marketing Director

EDWARD B. DEBEVEC
Treasurer

MARK E. FOSNAUGHT
Vice President
Branch Coordinator

WILLIAM J. HARR, JR.
Vice President

ADELINE NOVAK
Vice President
Human Resources

ROBERT J. PAPA
Vice President
Construction Lending

JOHN E. SCHIMMELMANN
Vice President
Deposit Operations

KENNAIRD H. STEWART
Vice President
Commercial Real Estate Lending

ROBERT D. TOTH
Vice President
Information Systems




                                       18
<PAGE>   21

Office Locations and Hours

BAINBRIDGE OFFICE
8500 Washington Street
Chagrin Falls, Ohio 44023
440-543-8889

BEDFORD HEIGHTS OFFICE
25350 Rockside Road
Bedford Hts., Ohio 44146
440-439-2200

CHARDON OFFICE
408 Water Street
Chardon, Ohio 44024
440-285-2343

MACEDONIA OFFICE
497 East Aurora Road
Macedonia, Ohio 44056
330-468-0055

MAYFIELD HEIGHTS OFFICE
1456 SOM Center Road
Mayfield Hts., Ohio 44124
440-449-8597

MEDINA OFFICE
3613 Medina Road
Medina, Ohio 44256
330-721-7484

MENTOR OFFICE
6990 Heisley Road
Mentor, Ohio 44060
440-944-0276

NORTH ROYALTON OFFICE
13901 Ridge Road
North Royalton, Ohio 44133
440-582-7417

SOLON OFFICE
34400 Aurora Road
Solon, Ohio 44139
440-542-6070

LOBBY
MON., TUES., WED., THURS.:
9:00 am - 4:30 pm
FRIDAY: 9:00 am - 5:30 pm
SATURDAY: 9:00 am - 1:00 pm

AUTO TELLER
MON., TUES., WED., THURS.:
9:00 am - 5:00 pm
FRIDAY: 9:00 am - 6:00 pm
SATURDAY:  9:00 am - 1:00 pm

BEACHWOOD OFFICE
La Place
2111 Richmond Road
Beachwood, Ohio 44122
216-831-6373

LAKEWOOD-CLEVELAND OFFICE
11010 Clifton Blvd.
Cleveland, Ohio 44102
216-631-8900

LOBBY
MON., TUES., THURS.:
9:00 am - 4:30 pm
FRIDAY: 9:00 am - 5:30 pm
SATURDAY: 9:00 am - 1:00 pm
CLOSED WEDNESDAY

AUTO TELLER
MON., TUES., THURS.:
9:00 am - 5:00 pm
FRIDAY: 9:00 am - 6:00 pm
SATURDAY: 9:00 am - 1:00 pm
CLOSED WEDNESDAY

SHAKER HEIGHTS OFFICE
Shaker Towne Centre
16909 Chagrin Blvd.
Shaker Hts., Ohio 44120
216-283-4003

LOBBY
MON., TUES., WED., THURS:
9:00 am -D 4:30pm
FRIDAY:  9:00 am -D 6:00 pm
SATURDAY:  9:00 am -D 1:00 pm

CORPORATE CENTER
30000 Aurora Road
Solon, Ohio 44139
440-248-7171

MONDAY - FRIDAY:
9:00 am -D 5:00pm






                                       19
<PAGE>   22

                            [LOGO] PVF CAPITAL CORP.




                             [PICTURE OF BUILDING]





<PAGE>   23




                          INDEPENDENT AUDITORS' REPORT



The Board of Directors
PVF Capital Corp.:


We have audited the accompanying consolidated statements of financial condition
of PVF Capital Corp. and subsidiaries (Company) as of June 30, 2001 and 2000,
and the related consolidated statements of operations, stockholders' equity, and
cash flows for each of the years in the three-year period ended June 30, 2001.
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of PVF Capital Corp.
and subsidiaries as of June 30, 2001 and 2000, and the results of their
operations and their cash flows for each of the years in the three-year period
ended June 30, 2001, in conformity with accounting principles generally accepted
in the United States of America.


                                                /s/ KPMG LLP

Cleveland, Ohio
July 27, 2001



                                       21
<PAGE>   24



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                 Consolidated Statements of Financial Condition

                             June 30, 2001 and 2000

<TABLE>
<CAPTION>
                                ASSETS                                    2001              2000
                                                                      -------------     -------------
<S>                                                                   <C>                   <C>
Cash and amounts due from depository institutions                     $   8,144,926         3,806,575
Interest bearing deposits                                                 1,200,192           815,280
Federal funds sold                                                       56,050,000         1,050,000
                                                                      -------------     -------------
             Cash and cash equivalents                                   65,395,118         5,671,855
Securities held to maturity (fair values
of $50,211,605 and $63,853,318, respectively)                            50,211,605        65,258,853
Mortgage-backed securities held to maturity (fair values
    of $18,585,184 and $1,200,418, respectively)                         18,123,936         1,215,045
Loans receivable held for long-term
investment, net of allowance for loan losses of $3,520,198 and
    $3,387,474, respectively                                            573,643,498       513,669,748
Loans receivable held for sale, net                                       6,151,814        10,737,721
Office properties and equipment, net                                      7,783,457         1,857,344
Real estate held for investment                                           1,300,000         4,094,020
Real estate owned                                                           547,279           488,461
Investment required by law -
      stock in the Federal Home Loan Bank
        of Cincinnati                                                     9,442,305         5,841,227
Prepaid expenses and other assets                                         3,925,903         4,151,852
                                                                      -------------     -------------
             Total assets                                             $ 736,524,915       612,986,126
                                                                      =============     =============
                   LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
    Deposits                                                          $ 480,532,150       440,981,859
    Advances from the Federal Home Loan
      Bank of Cincinnati                                                185,866,855       114,973,840
    Notes payable                                                         4,700,000         1,000,000
    Advances from borrowers for taxes and
      insurance                                                           6,469,061         6,175,119
    Accrued expenses and other liabilities                               10,950,714         6,955,245
                                                                      -------------     -------------
             Total liabilities                                          688,518,780       570,086,063
                                                                      -------------     -------------
Commitments and contingencies

Stockholders' equity:
    Serial preferred stock, $.01 par
      value, 1,000,000 shares
        authorized; none issued                                                  --                --
    Common stock, $.01 par value,
      15,000,000 shares authorized;
        5,331,314 and 4,833,333 shares
        issued, respectively                                                 53,313            48,333
    Additional paid-in capital                                           31,237,583        24,785,254
    Retained earnings (substantially
      restricted)                                                        17,877,854        19,039,654
    Treasury stock, at cost, 123,857 and
    102,369 shares, respectively                                         (1,162,615)         (973,178)
                                                                      -------------     -------------
             Total stockholders' equity                                  48,006,135        42,900,063
                                                                      -------------     -------------
             Total liabilities and stockholders' equity               $ 736,524,915       612,986,126
                                                                      =============     =============
</TABLE>


See accompanying notes to consolidated financial statements.




                                       22
<PAGE>   25





                       PVF CAPITAL CORP. AND SUBSIDIARIES

                      Consolidated Statements of Operations

                    Years ended June 30, 2001, 2000, and 1999
<TABLE>
<CAPTION>
                                                                             2001               2000                1999
                                                                       -----------------  -----------------   -----------------
<S>                                                                  <C>                        <C>                 <C>
Interest income:
    Loans                                                            $       48,100,662         38,390,556          33,145,769
    Mortgage-backed securities                                                1,189,468             89,987             146,865
    Cash and securities                                                       4,671,814          3,545,785           2,054,310
                                                                       -----------------  -----------------   -----------------
             Total interest income                                           53,961,944         42,026,328          35,346,944
                                                                       -----------------  -----------------   -----------------

Interest expense:
    Deposits                                                                 27,079,731         19,409,126          16,960,961
    Short-term borrowings                                                     7,038,219          4,563,252           2,901,621
                                                                       -----------------  -----------------   -----------------
             Total interest expense                                          34,117,950         23,972,378          19,862,582
                                                                       -----------------  -----------------   -----------------
             Net interest income                                             19,843,994         18,053,950          15,484,362

    Provision for loan losses                                                   225,000            850,000                  --
                                                                       -----------------  -----------------   -----------------
             Net interest income after provision for loan losses             19,618,994         17,203,950          15,484,362
                                                                       -----------------  -----------------   -----------------
    Noninterest income:
      Service and other fees                                                    562,613            482,208             492,316
      Mortgage banking activities, net                                          501,143            547,787             422,304
      Gain on sale of loans, net                                                633,362            170,199             601,056
      Gain on sale of real estate                                               300,790            207,165           3,800,696
      Rental income                                                             270,528            301,426              81,779
      Insurance proceeds                                                             --            672,243                  --
      Other, net                                                                331,150            299,952              37,311
                                                                       -----------------  -----------------   -----------------
             Total noninterest income                                         2,599,586          2,680,980           5,435,462
                                                                       -----------------  -----------------   -----------------
    Noninterest expense:
      Compensation and benefits                                               6,493,661          5,659,378           4,848,030
      Office, occupancy, and equipment                                        2,586,580          2,002,573           1,783,631
      Insurance                                                                 208,279            232,491             272,607
      Professional and legal                                                    344,849            331,103             921,664
      Other                                                                   2,584,041          2,183,795           1,823,225
                                                                       -----------------  -----------------   -----------------
             Total noninterest expense                                       12,217,410         10,409,340           9,649,157
                                                                       -----------------  -----------------   -----------------
             Income before federal income taxes                              10,001,170          9,475,590          11,270,667
    Federal income taxes:
      Current                                                                 3,128,578          3,099,581           2,437,926
      Deferred                                                                  236,714             63,679           1,113,454
                                                                       -----------------  -----------------   -----------------
                                                                              3,365,292          3,163,260           3,551,380
                                                                       -----------------  -----------------   -----------------
             Net income                                              $        6,635,878          6,312,330           7,719,287
                                                                       =================  =================   =================
    Basic earnings per share                                         $             1.27               1.20                1.45
                                                                       =================  =================   =================
    Diluted earnings per share                                       $             1.23               1.16                1.40
                                                                       =================  =================   =================
</TABLE>


See accompanying notes to consolidated financial statements.



                                       23
<PAGE>   26






                       PVF CAPITAL CORP. AND SUBSIDIARIES

                 Consolidated Statements of Stockholders' Equity

                    Years ended June 30, 2001, 2000, and 1999
<TABLE>
<CAPTION>

                                                             ADDITIONAL
                                                 COMMON       PAID-IN        RETAINED       TREASURY
                                                 STOCK        CAPITAL        EARNINGS         STOCK           TOTAL
                                              -----------    -----------    -----------     -----------     -----------
<S>                                         <C>             <C>            <C>              <C>             <C>
Balance at June 30, 1998                      $    39,908     14,517,452     16,651,350            --        31,208,710

    Net income                                       --             --        7,719,287            --         7,719,287

    Cash paid in lieu of fractional shares           --             --             (939)           --              (939)

    Stock dividend issued, 398,934 shares           3,989      5,730,687     (5,734,676)           --              --

    Purchase of 6,050 shares of
      Treasury stock                                 --             --             --           (71,250)        (71,250)
                                              -----------    -----------    -----------     -----------     -----------

Balance at June 30, 1999                           43,897     20,248,139     18,635,022         (71,250)     38,855,808

    Net income                                       --             --        6,312,330            --         6,312,330

    Stock options exercised,
      3,982 shares                                     40          8,043           --              --             8,083

    Cash paid in lieu of fractional shares           --             --           (2,110)           --            (2,110)

    Stock dividend issued, 439,609 shares           4,396      4,529,072     (4,533,468)           --              --

    Cash dividend                                    --             --       (1,372,120)           --        (1,372,120)

    Purchase of 87,013 shares of
      Treasury stock                                 --             --             --          (901,928)       (901,928)
                                              -----------    -----------    -----------     -----------     -----------

Balance at June 30, 2000                           48,333     24,785,254     19,039,654        (973,178)     42,900,063

    Net income                                       --             --        6,635,878            --         6,635,878

    Stock options exercised,
      20,384 shares                                   204         38,201           --              --            38,405

    Cash paid in lieu of fractional shares           --             --           (1,840)           --            (1,840)

    Stock dividend issued, 477,597 shares           4,776      6,414,128     (6,418,904)           --              --

    Cash dividend                                    --             --       (1,376,934)           --        (1,376,934)

    Purchase of 21,488 shares of
      Treasury stock                                 --             --             --          (189,437)       (189,437)
                                              -----------    -----------    -----------     -----------     -----------

Balance at June 30, 2001                      $    53,313     31,237,583     17,877,854      (1,162,615)     48,006,135
                                              ===========    ===========    ===========     ===========     ===========
</TABLE>


See accompanying notes to consolidated financial statements.







                                       24
<PAGE>   27



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                      Consolidated Statements of Cash Flows

                    Years ended June 30, 2001, 2000, and 1999


<TABLE>
<CAPTION>


                                                                        2001              2000              1999
                                                                    -------------     -------------     -------------
<S>                                                                 <C>                   <C>               <C>
Operating activities:
    Net income                                                      $   6,635,878         6,312,330         7,719,287
    Adjustments required to reconcile net income to net cash
      provided by (used in) operating activities:
         Accretion of discount on securities                             (618,845)           (9,297)           (1,458)
         Depreciation and amortization                                    710,375           587,993           605,453
         Provision for loan losses                                        225,000           850,000              --
         Accretion of unearned discount and deferred loan
           origination fees, net                                       (1,132,931)       (1,085,706)       (1,263,266)
         Deferred income tax provision                                   (236,714)          (63,679)       (1,113,454)
         Proceeds from loans held for sale                            106,047,642        37,826,392       107,977,623
         Originations of loans held for sale                         (101,461,735)      (46,791,937)     (108,105,064)
         Gain on the sale of loans, net                                  (633,362)         (170,199)         (601,056)
         Net change in other assets and other liabilities               4,356,135            48,841          (649,409)
                                                                    -------------     -------------     -------------
             Net cash provided by (used in) operating activities       13,891,443        (2,495,262)        4,568,656
                                                                    -------------     -------------     -------------
Investing activities:
    Loans originated                                                 (226,319,550)     (236,094,858)     (157,546,496)
    Principal repayments on loans                                     147,331,835       117,791,239       132,682,883
    Principal repayments on mortgage-backed securities
      held to maturity                                                  3,926,715           522,969         1,223,417
    Purchase of mortgage-backed securities held to maturity              (977,611)             --                --
    Purchase of securities held to maturity                           (99,918,836)      (39,995,313)      (25,389,250)
    Maturities and calls of securities held to maturity               115,584,929            79,798        27,856,667
    Federal Home Loan Bank (FHLB) stock purchased, net                 (3,601,078)       (2,081,775)         (251,888)
    Additions to office properties and equipment                       (6,636,488)         (442,127)         (295,118)
    Disposals of real estate owned                                        740,442           478,410           752,636
    (Additions) disposal of real estate
      held for investment, net                                          2,794,020          (297,168)       (2,858,782)
                                                                    -------------     -------------     -------------
             Net cash used in investing activities                    (67,075,622)     (160,038,825)      (23,825,931)
                                                                    -------------     -------------     -------------
</TABLE>

                                                                     (Continued)



                                       25
<PAGE>   28



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                      Consolidated Statements of Cash Flows

                    Years ended June 30, 2001, 2000, and 1999
<TABLE>
<CAPTION>

                                                                            2001              2000              1999
                                                                        -------------     -------------     -------------
<S>                                                                     <C>                <C>                <C>
Financing activities:
    Payments on FHLB advances                                           $ (89,106,985)     (124,066,896)      (10,283,720)
    Proceeds from FHLB advances                                           160,000,000       173,000,000        30,000,000
    Proceeds from notes payable                                             4,700,000         1,000,000              --
    Repayment of notes payable                                             (1,000,000)             --          (1,060,000)
    Net increase in NOW and passbook savings                                2,913,422        10,847,871         7,719,664
    Proceeds from issuance of certificates of deposit                     124,038,791       160,039,738        46,744,489
    Payments on maturing certificates of deposit                          (87,401,922)      (61,147,486)      (67,451,145)
    Payment of cash dividend                                               (1,378,774)       (1,374,230)             (939)
    Purchase of Treasury stock                                               (189,437)         (901,928)          (71,250)
    Other                                                                     332,347           719,541           532,546
                                                                        -------------     -------------     -------------
             Net cash provided by financing activities                    112,907,442       158,116,610         6,129,645
                                                                        -------------     -------------     -------------
             Net increase (decrease) in cash and cash equivalents          59,723,263        (4,417,477)      (13,127,630)

Cash and cash equivalents at beginning of year                              5,671,855        10,089,332        23,216,962
                                                                        -------------     -------------     -------------
Cash and cash equivalents at end of year                                $  65,395,118         5,671,855        10,089,332
                                                                        =============     =============     =============
Supplemental disclosures of cash flow information:
    Cash payments of interest                                           $  32,577,423        23,766,847        19,922,567
    Cash payments of income taxes                                           3,399,482         2,780,000         2,480,000
                                                                        =============     =============     =============
Supplemental schedule of noncash investing and financing activities:
      Transfers to real estate owned                                    $     742,980           585,226           170,000
      Loans securitized into mortgage-backed securities                    16,400,000              --                --
                                                                        =============     =============     =============
</TABLE>


See accompanying notes to consolidated financial statements.






                                       26
<PAGE>   29

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999




  (1)   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RELATED MATTERS

        The accounting and reporting policies of PVF Capital Corp. and its
        subsidiaries (Company) conform to generally accepted accounting
        principles and general industry practice. The Company's principal
        subsidiary, Park View Federal Savings Bank (Bank), is principally
        engaged in the business of offering savings deposits through the
        issuance of savings accounts, money market accounts, and certificates of
        deposit and lending funds primarily for the purchase, construction, and
        improvement of real estate in Cuyahoga, Summit, Geauga, Lake, Medina and
        eastern Lorain Counties, Ohio. The deposit accounts of the Bank are
        insured under the Savings Association Insurance Fund (SAIF) of the
        Federal Deposit Insurance Corporation (FDIC) and are backed by the full
        faith and credit of the United States government. The following is a
        description of the significant policies, which the Company follows in
        preparing and presenting its consolidated financial statements.

        (A)   PRINCIPLES OF CONSOLIDATION

              The consolidated financial statements include the accounts of PVF
              Capital Corp. and its wholly owned subsidiaries, Park View Federal
              Savings Bank and PVF Service Corporation. All significant
              intercompany transactions and balances are eliminated in
              consolidation.

        (B)   USE OF ESTIMATES

              The preparation of financial statements in conformity with
              accounting principles generally accepted in the United States of
              America requires management to make estimates and assumptions that
              affect the reported amounts of assets and liabilities and
              disclosure of contingent assets and liabilities at the date of the
              financial statements and the reported amounts of revenues and
              expenses during the reporting period. Actual results could differ
              from those estimates.

        (C)   ALLOWANCE FOR LOSSES

              A loan is considered impaired when, based on current information
              and events, it is probable that the Bank will be unable to collect
              the scheduled payments of principal and interest according to the
              contractual terms of the loan agreement. Since the Bank's loans
              are primarily collateral dependent, measurement of impairment is
              based on the fair value of the collateral.

              The allowance for loan losses is maintained at a level to absorb
              probable losses inherent in the portfolio as of the balance sheet
              date. The adequacy of the allowance for loan losses is
              periodically evaluated by the Bank based upon the overall
              portfolio composition and general market conditions. While
              management uses the best information available to make these
              evaluations, future adjustments to the allowance may be necessary
              if economic conditions change substantially from the assumptions
              used in making the evaluations. Future adjustments to the
              allowance may also be required by regulatory examiners based on
              their judgments about information available to them at the time of
              their examination.

              Uncollectible interest on loans that are contractually 90 days or
              more past due is charged off, or an allowance is established. The
              allowance is established by a charge to interest income equal to
              all interest previously accrued, and income is subsequently
              recognized only to the extent cash payments are received until the
              loan is determined to be performing in accordance with the
              applicable loan terms in which case the loan is returned to
              accrual status.





                                       27
<PAGE>   30



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

        (D)   MORTGAGE BANKING ACTIVITIES

              Mortgage loans held for sale are carried at the lower of cost or
              market value, determined on an aggregate basis.

              The Company retains servicing on loans that are sold. The Company
              recognizes an asset for mortgage servicing rights based on an
              allocation of total loan cost using relative fair values, or a
              liability for mortgage servicing rights based on fair value, if
              the benefits of servicing are not expected to adequately
              compensate the Company. The cost of mortgage servicing rights is
              amortized in proportion to, and over the period of, estimated net
              servicing revenues. Impairment of mortgage servicing rights is
              assessed based on the fair value of those rights. Fair values are
              estimated using discounted cash flows based on current market
              interest rates and prepayment assumptions. For purposes of
              measuring impairment, the rights are stratified based on
              predominant risk characteristics of the underlying loans such as
              interest rates and scheduled maturity. The amount of impairment
              recognized is the amount by which the capitalized mortgage
              servicing rights exceed their fair value. The Company monitors
              prepayments, and in the event that actual prepayments exceed
              original estimates, amortization is adjusted accordingly.

        (E)   INVESTMENT AND MORTGAGE-BACKED SECURITIES

              The Company classifies all securities as held to maturity or
              available for sale. Securities held to maturity are limited to
              debt securities that the Company has the positive intent and the
              ability to hold to maturity; these securities are reported at
              amortized cost. Securities available for sale consist of all other
              securities; these securities are reported at fair value, and
              unrealized gains and losses are not reflected in earnings but are
              reflected as a component of accumulated other comprehensive
              income, net of tax. Investment and mortgage-backed securities that
              could be sold in the future because of changes in interest rates
              or other factors are not be classified as held to maturity.

              Gains or losses on the sales of all securities are recognized at
              the date of sale (trade date). Premiums and discounts are
              amortized or accredited over the life of the related security as
              an adjustment to yield. Dividends and interest income are
              recognized when earned.

              A decline in fair value of any available for sale or held to
              maturity security below cost that is deemed other than temporary
              is charged to earnings resulting in establishment of a new cost
              basis for the security.

        (F)   OFFICE PROPERTIES AND EQUIPMENT

              Depreciation and amortization are computed using the straight-line
              method at rates expected to amortize the cost of the assets over
              their estimated useful lives or, with respect to leasehold
              improvements, the term of the lease, if shorter.



                                       28
<PAGE>   31
'                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


        (G)   FEDERAL INCOME TAXES

              The Company files a consolidated tax return with its wholly owned
              subsidiaries and provides deferred federal income taxes in
              recognition of temporary differences between financial statement
              and income tax reporting. Deferred tax assets and liabilities are
              recognized for the future tax consequences attributable to
              differences between the financial statement carrying amounts of
              existing assets and liabilities and their respective tax bases.

              Deferred tax assets and liabilities are measured using enacted tax
              rates expected to apply to taxable income in the years in which
              those temporary differences are expected to be recovered or
              settled, and the effect on deferred tax assets and liabilities of
              a change in tax rates is recognized in income in the period that
              includes the enactment date.

        (H)   LOAN ORIGINATION AND COMMITMENT FEES

              The Company defers loan origination and commitment fees and
              certain direct loan origination costs and amortizes the net amount
              over the lives of the related loans as a yield adjustment if the
              loans are held for investment, or recognizes the net fees as
              mortgage banking income when the loans are sold.

        (I)   REAL ESTATE OWNED

              Real estate owned is carried at the lower of cost, including
              capitalized holding costs, or fair value less estimated selling
              costs.

        (J)   STATEMENTS OF CASH FLOWS

              For purposes of the consolidated statements of cash flows, the
              Company considers cash and amounts due from depository
              institutions, interest bearing deposits, and federal funds sold
              with original maturities of less than three months to be cash
              equivalents.

        (K)   EARNINGS PER SHARE

              Earnings per share are calculated by dividing net income for the
              period by the weighted average number of shares of common stock
              outstanding during the period. The assumed exercise of stock
              options is included in the calculation of diluted earnings per
              share.

              The per share data for 2001, 2000 and 1999 are adjusted to reflect
              the 10% stock dividends declared July 1999, July 2000 and July
              2001.

        (L)   RECLASSIFICATIONS

              Certain reclassifications have been made to the prior year amounts
              to conform to the current year presentation.







                                       29
<PAGE>   32

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

(2)  SECURITIES

     Securities held to maturity at June 30, 2001 and 2000, are summarized as
     follows:

<TABLE>
<CAPTION>

                                                                                      2001
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                          AMORTIZED         UNREALIZED       UNREALIZED     ESTIMATED
                                                            COST              GAIN            LOSS          FAIR VALUE
                                                        ---------------- --------------- --------------------------------
<S>                                                  <C>                <C>             <C>               <C>
        United States Government and agency
          securities
                                                      $     50,000,000               --              --      50,000,000
        Municipal bond                                         211,605                                          211,605
                                                        ---------------- --------------- --------------      ------------
                  Total                               $     50,211,605               --              --      50,211,605
                                                        ================ =============== ==============      ============
        Due after one year through five years         $     50,211,605               --              --      50,211,605
                                                        ================ =============== ==============      ============
</TABLE>
<TABLE>
<CAPTION>
                                                                                      2000
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                          AMORTIZED         UNREALIZED       UNREALIZED      ESTIMATED
                                                            COST              GAIN            LOSS          FAIR VALUE
                                                        ---------------- --------------- --------------------------------
<S>                                                  <C>                <C>             <C>               <C>
        United States Government and agency
          securities
                                                      $     64,962,318               --      (1,405,535)     63,556,783
        Municipal bond                                         296,535               --              --         296,535
                                                        ---------------- --------------- --------------      ------------
                  Total                               $     65,258,853               --      (1,405,535)     63,853,318
                                                        ================ =============== ==============      ============
        Due after one year through five years         $     65,258,853               --      (1,405,535)     63,853,318
                                                        ================ =============== ==============      ============
</TABLE>

     There were no sales of securities for the years ended June 30, 2001, 2000
     or 1999.

     In both fiscal years ended June 30, 2001 and 2000, all United States
     Government and agency securities are callable.




                                       30
<PAGE>   33

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


(3)  MORTGAGE-BACKED SECURITIES

     Mortgage-backed securities held to maturity at June 30, 2001 and 2000, are
     summarized as follows:
<TABLE>
<CAPTION>

                                                                                      2001
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                          AMORTIZED       UNREALIZED        UNREALIZED        ESTIMATED
                                                              COST           GAIN              LOSS          FAIR VALUE
                                                        ---------------- --------------- --------------------------------
<S>                                                   <C>                <C>             <C>               <C>
        FNMA mortgage-backed securities               $        873,612           28,667              --         902,279
        FHLMC mortgage-backed securities                    17,038,537          432,581              --      17,471,118
        Accrued interest receivable                            211,787               --              --         211,787
                                                        ---------------- --------------- --------------      ------------
                                                            18,123,936          461,248              --      18,585,184
                                                        ================ =============== ==============      ============
        Due in less than one year                              832,698              465              --         833,163
        Due after five years                                17,291,238          460,783              --      17,752,021
                                                        ---------------- --------------- --------------      ------------
                                                      $     18,123,936          461,248              --      18,585,184
                                                        ================ =============== ==============      ============
</TABLE>
<TABLE>
<CAPTION>

                                                                                      2000
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                          AMORTIZED       UNREALIZED        UNREALIZED        ESTIMATED
                                                              COST           GAIN              LOSS          FAIR VALUE
                                                        ---------------- --------------- --------------------------------
<S>                                                   <C>                <C>               <C>           <C>
        FHLMC mortgage-backed securities              $      1,207,804               --         (14,627)      1,193,177
        Accrued interest receivable                              7,241               --              --           7,241
                                                        ---------------- --------------- --------------      ------------
                                                      $      1,215,045               --         (14,627)      1,200,418
                                                        ================ =============== ==============      ============
        Due after one year through five years                1,057,919               --         (14,627)      1,043,292
        Due after five years                                   157,126               --              --         157,126
                                                        ---------------- --------------- --------------      ------------
                                                      $      1,215,045               --         (14,627)      1,200,418
                                                        ================ =============== ==============      ============
</TABLE>

     There were no sales of mortgage-backed securities for the years ended June
     30, 2001, 2000 or 1999.





                                       31
<PAGE>   34
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999



(4)  LOANS RECEIVABLE HELD FOR LONG-TERM INVESTMENT

     Loans receivable held for long-term investment at June 30, 2001 and 2000,
     consist of the following:

<TABLE>
<CAPTION>
                                                                    2001               2000
                                                               -------------       ------------
<S>                                                            <C>                  <C>
Real estate mortgages:
    One-to-four family residential                             $ 207,345,895        197,226,816
    Home equity line of credit                                    37,596,975         30,978,348
    Multifamily residential                                       43,771,548         42,503,308
    Commercial                                                   125,769,417        115,226,307
    Commercial equity line of credit                              15,232,077         12,078,863
    Land                                                          58,833,273         41,583,317
    Construction - residential                                   106,275,470        106,706,249
    Construction - multi-family                                      306,000                 --
    Construction - commercial                                     28,962,103         21,603,903
                                                               -------------       ------------

                           Total real estate mortgages           624,092,758        567,907,111

Consumer                                                           5,773,178          4,390,647
                                                               -------------       ------------

                                                                 629,865,936        572,297,758

Accrued interest receivable                                        3,415,327          3,019,724
Deferred loan origination fees                                    (2,318,127)        (1,956,826)
Unearned discount                                                     (4,072)           (15,529)
Undisbursed portion of loan proceeds                             (53,795,368)       (56,287,905)
Allowance for loan losses                                         (3,520,198)        (3,387,474)
                                                               -------------       ------------

                                                               $ 573,643,498        513,669,748
                                                               =============       ============
</TABLE>

A summary of the changes in the allowance for loan losses for the
years ended June 30, 2001, 2000, and 1999, is as follows:


<TABLE>
<CAPTION>
                                        2001               2000             1999
                                     -----------       ----------       ----------
<S>                                <C>                <C>              <C>
Beginning balance                    $ 3,387,474        2,629,743        2,686,521
Provision charged to operations          225,000          850,000               --
Charge-offs                             (112,435)         (92,855)         (62,097)
Recoveries                                20,159              586            5,319
                                     -----------       ----------       ----------

Ending balance                       $ 3,520,198        3,387,474        2,629,743
                                     ===========       ==========       ==========
</TABLE>




32
<PAGE>   35



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

     The following is a summary of the principal balances of loans on nonaccrual
     status, and loans past due 90 days or more which were on accrual status, at
     June 30:

<TABLE>
<CAPTION>
                                                          2001            2000
                                                      ----------       ---------
<S>                                                   <C>              <C>
Loans on nonaccrual status:
    Real estate mortgages:
      One-to-four family residential                  $1,491,000       1,254,000
      Commercial                                       1,016,000          69,000
      Multi-family residential                           115,000         253,000
      Construction and land                            2,763,000       3,266,000
                                                      ----------       ---------
          Total loans on nonaccrual status             5,385,000       4,842,000
                                                      ----------       ---------

Past due loans on accrual status -
    real estate mortgages -
      construction and land                               20,000         935,000
                                                      ----------       ---------

Total past due loans                                  $5,405,000       5,777,000
                                                      ==========       =========
</TABLE>

     During the years ended June 30, 2001, 2000 and 1999, gross interest income
     of $769,931, $502,840 and $349,539, respectively, would have been recorded
     on loans accounted for on a nonaccrual basis if the loans had been current
     throughout the period.

     At June 30, 2001 and 2000, the recorded investment in loans, which have
     been identified as being impaired, totaled $5,385,000 and $4,842,000,
     respectively. Included in the impaired amount at June 30, 2001 and 2000, is
     $237,338 and $188,966, respectively, related to loans with a corresponding
     valuation allowance of $47,746 and $150,506, respectively. The Company
     recognized no interest on impaired loans in 2001, 2000, and 1999 (during
     the portion of the respective years that they were impaired).

     Average impaired loans for the years ended June 30, 2001 and 2000 amounted
     to $5,504,500 and $4,240,500, respectively.

(5)  LOANS RECEIVABLE HELD FOR SALE

     Loans receivable held for sale at June 30, 2001 and 2000, consist of the
     following:

<TABLE>
<CAPTION>
                                                                  2001
                                          -------------------------------------------------------
                                                            GROSS        GROSS
                                           AMORTIZED      UNREALIZED    UNREALIZED     ESTIMATED
                                            COST             GAIN         LOSS          FAIR VALUE
                                          -----------       ------      ---------      ----------
<S>                                       <C>               <C>         <C>          <C>
      Real estate mortgages               $ 6,178,875       46,933             --       6,225,808
      Deferred loan origination fees          (27,061)          --             --         (27,061)
                                          -----------       ------      ---------      ----------

                                          $ 6,151,814       46,933             --       6,198,747
                                          ===========       ======      =========      ==========
</TABLE>


                                                                              33
<PAGE>   36



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


<TABLE>
<CAPTION>
                                                                  2000
                                      ------------------------------------------------------
                                                        GROSS        GROSS
                                      AMORTIZED      UNREALIZED    UNREALIZED       ESTIMATED
                                        COST             GAIN         LOSS          FAIR VALUE
                                      -----------       ------      ---------      -----------

<S>                                 <C>               <C>            <C>            <C>
Real estate mortgages               $ 10,956,179            --        (45,000)      10,911,179
Deferred loan origination fees          (173,458)           --             --         (173,458)
                                    ------------       -------     ----------      -----------

                                    $ 10,782,721            --        (45,000)      10,737,721
                                    ============       =======     ==========      ===========
</TABLE>

        Mortgage banking activities, net, including gains and losses on sales of
        loans, for each of the years in the three-year period ended June 30,
        2001, consist of the following:

<TABLE>
<CAPTION>
                                                         2001            2000             1999
                                                    -----------       ----------       ----------
<S>                                                 <C>              <C>              <C>
Mortgage loan servicing fees                        $   810,567          755,705          702,645
Amortization of mortgage servicing rights              (354,424)        (162,918)        (280,341)
Gross realized:
   Gains on sales of loans                            1,766,805          613,584        1,506,985
   Losses on sales of loans                          (1,133,443)        (443,385)        (905,929)
Market valuation provision for losses on loans
    receivable held for sale                                 --          (45,000)              --
Market valuation recoveries                              45,000               --               --
                                                    -----------       ----------       ----------

                                                    $ 1,134,505          717,986        1,023,360
                                                    ===========       ==========       ==========
</TABLE>


        The allowance for mortgage banking market value losses was $0, $45,000,
        and $0 for the years ended June 30, 2001, 2000 and 1999.

        At June 30, 2001 and 2000, the Bank was servicing whole and
        participation mortgage loans for others aggregating approximately
        $351,657,535 and $288,249,513, respectively. The Bank had $4,817,581 and
        $3,411,372 at June 30, 2001 and 2000, respectively, of funds collected
        on mortgage loans serviced for others due to investors, which is
        included in accrued expenses and other liabilities.


34
<PAGE>   37



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

        Originated mortgage servicing rights capitalized and amortized during
        the years ended June 30, 2001, 2000 and 1999 were as follows:

<TABLE>
<CAPTION>
                                    2001              2000              1999
                                -----------        ----------        ----------
<S>                          <C>                   <C>               <C>
Beginning balance               $   833,558           798,973           606,200
Originated                          805,544           197,503           473,114
Amortized                          (354,424)         (162,918)         (280,341)
                                -----------        ----------        ----------

Ending balance                  $ 1,284,678           833,558           798,973
                                ===========        ==========        ==========

Estimated fair value            $ 3,548,783         2,349,255         2,334,665
                                ===========        ==========        ==========
</TABLE>

     No valuation allowance has been established for mortgage servicing rights,
     as there has been no impairment on those rights.

(6)  OFFICE PROPERTIES AND EQUIPMENT

     Office properties and equipment at cost, less accumulated depreciation and
     amortization at June 30, 2001 and 2000 are summarized as follows:

<TABLE>
<CAPTION>
                                                         2001             2000
                                                    ------------       ----------
<S>                                                 <C>               <C>
Land and land improvements                          $    682,500               --
Building and building improvements                     4,217,307           23,747
Leasehold improvements                                 2,446,845        2,042,976
Furniture and equipment                                5,450,947        4,378,276
                                                    ------------       ----------

                                                      12,797,599        6,444,999
Less accumulated depreciation and amortization        (5,014,142)      (4,587,655)
                                                    ------------       ----------

                                                    $  7,783,457        1,857,344
                                                    ============       ==========
</TABLE>




                                                                              35
<PAGE>   38



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

  (7)   DEPOSITS

        Deposit balances at June 30, 2001 and 2000 are summarized by interest
rate as follows:

<TABLE>
<CAPTION>
                                                                             2001                       2000
                                                                   -------------------------- --------------------------
                                                                       AMOUNT          %          AMOUNT          %
                                                                   ---------------- --------- ---------------- ---------

<S>                                        <C>                  <C>                <C>       <C>              <C>
        NOW and money market accounts
                                           Noninterest bearing     $   12,131,093       2.5%  $   10,681,710       2.4%
                                               2.00 - 5.00%            40,968,105       8.5       38,611,269       8.8
                                                                   ---------------- --------- ---------------- ---------

                                                                       53,099,198      11.0       49,292,979      11.2

        Passbook savings                       3.00 - 5.00%            31,244,931       6.5       32,137,728       7.3

        Certificates of deposit                2.50 - 2.99%               253,089        .1          721,663        .2
                                               3.00 - 3.99             11,015,229       2.3               --       --
                                               4.00 - 4.99             58,371,097      12.1       20,079,686       4.5
                                               5.00 - 5.99             73,859,206      15.4      108,986,262      24.7
                                               6.00 - 6.99            154,064,360      32.1      214,068,573      48.5
                                               7.00 - 7.99             98,547,027      20.5       15,413,432       3.5
                                               8.00 - 8.99                 78,013       0.0          281,536        .1
                                                                   ---------------- --------- ---------------- ---------

                                                                      396,188,021      82.5      359,551,152      81.5
                                                                   ---------------- --------- ---------------- ---------

                                                                   $  480,532,150     100.0%  $  440,981,859     100.0%
                                                                   ================ ========= ================ =========

        Weighted average rate on deposits                                              5.53%                      5.49%
                                                                                    =========                  =========
</TABLE>


<TABLE>
<CAPTION>

                                                                             2001                       2000
                                                                   -------------------------- --------------------------
                                                                       AMOUNT          %          AMOUNT          %
                                                                   ---------------- --------- ---------------- ---------

        Remaining term to maturity of certificates of deposit:
<S>          <C>                                               <C>                 <C>       <C>               <C>
             12 months or less                                     $  291,120,701      73.5   $  277,540,274      77.2%
             13 to 24 months                                           88,000,633      22.2       43,853,077      12.2
             25 to 36 months                                            7,055,108       1.8       28,263,017       7.9
             Over 36 months                                            10,011,579       2.5        9,894,784       2.7
                                                                   ---------------- --------- ---------------- ---------

                                                                   $  396,188,021     100.0%  $  359,551,152     100.0%
                                                                   ================ ========= ================ =========

        Weighted average rate on certificates of deposit                               6.23%                      6.17%
                                                                                    =========                  =========
</TABLE>

     Time deposits in amounts of $100,000 or more totaled $119,309,822 and
     $99,473,486 at June 30, 2001 and 2000, respectively.


36
<PAGE>   39



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


        Interest expense on deposits is summarized as follows:

<TABLE>
<CAPTION>
                                               2001             2000            1999
                                           -----------       ----------       ----------
<S>                                     <C>                  <C>              <C>
        NOW accounts                       $ 1,292,321          978,645          730,099
        Passbook accounts                      771,793          812,545          832,070
        Certificates of deposit             25,015,617       17,617,936       15,398,792
                                           -----------       ----------       ----------

                                           $27,079,731       19,409,126       16,960,961
                                           ===========       ==========       ==========
</TABLE>

  (8)   ADVANCES FROM THE FEDERAL HOME LOAN BANK OF CINCINNATI

        Advances from the Federal Home Loan Bank of Cincinnati, with maturities
        and interest rates thereon at June 30, 2001 and 2000, were as follows:

<TABLE>
<CAPTION>
        MATURITY                         INTEREST RATE                          2001             2000
        --------                         -------------                     ---------------- ---------------
<S>                                     <C>                               <C>                <C>
        June 2002                              5.37%for 2001 and
                                               6.60% for 2000            $     65,000,000       89,000,000
        March 2001                             5.93                                    --        5,000,000
        February 2003                          6.00                               500,000          500,000
        February 2006                          6.05                               366,855          473,840
        February 2008                          5.37                            10,000,000       10,000,000
        March 2008                             5.64                            10,000,000       10,000,000
        March 2011                             3.94                            50,000,000               --
        May 2011                               4.16                            50,000,000               --
                                                                           ---------------- ---------------

                                                                         $    185,866,855      114,973,840
                                                                           ================ ===============

        Weighted average interest rate                                            4.68%            6.38%
                                                                           ================ ===============
</TABLE>

        The Bank maintains two lines of credit, totaling $122,500,000, with the
        Federal Home Loan Bank of Cincinnati (FHLB). The $100,000,000 repurchase
        line matures in June 2001. The Bank has chosen to take daily advances
        from this line, with the interest rate set daily. The $22,500,000 cash
        management line matures in October 2000. Serving as collateral for such
        advances, the Bank has pledged mortgage loans with unpaid principal
        balances aggregating approximately $191,095,000 and $172,460,760 at June
        30, 2001 and 2000, respectively. In addition, stock in the FHLB is
        pledged for such advances.




                                                                              37
<PAGE>   40



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

  (9)   NOTES PAYABLE

        On April 12, 2000, PVF Service Corporation, a wholly owned subsidiary of
        the Company, secured a mortgage note from another federally insured
        institution at a variable interest rate that adjusts to prime without
        notice on the effective date of each change in the lender's prime rate.
        The balance at June 30, 2001 and 2000 was $0 and $1,000,000,
        respectively. The note was to mature in April of 2002, but was paid in
        full during the year ended June 30, 2001.

        On July 26, 2000, PVF Capital Corp. secured a $5 million line of credit
        from another federally insured institution at a variable interest rate
        that adjusts to LIBOR plus 200 basis points. Each draw is separately
        negotiated with respect to rate and term. The outstanding balance at
        June 30, 2001 was $4,700,000. The line matures on July 31, 2002, but can
        be extended indefinitely in 2-year increments.

(10)    FEDERAL INCOME TAXES AND RETAINED EARNINGS

        The accompanying consolidated financial statements reflect provisions
        for federal income taxes differing from the amounts computed by applying
        the U.S. federal income tax statutory rate to income before federal
        income taxes. These differences are reconciled as follows:

<TABLE>
<CAPTION>
                                                      2001                      2000                      1999
                                            ------------------------- ----------------------    ----------------------
                                                AMOUNT         %          AMOUNT         %          AMOUNT         %
                                            --------------   -----     -------------  ------    --------------  ------
<S>                                         <C>            <C>      <C>              <C>      <C>              <C>
        Computed expected tax                   $3,500,410    35.0%    $   3,316,457    35.0%    $   3,944,733    35.0%
        Decrease in tax resulting from:
           Benefit of graduated rates             (100,000)   (1.0)          (94,756)   (1.0)         (112,706)   (1.0)
           Tax credits                            (111,646)   (1.1)         (111,774)   (1.2)         (219,332)   (2.0)
           Other, net                               76,528     0.8            53,333     0.6           (61,315)   (0.5)
                                                ----------   -----    --------------  ------    --------------  ------

                                                $3,365,292    33.7%    $   3,163,260    33.4%    $   3,551,380    31.5%
                                                ==========   =====    ==============  ======    ==============   =====
</TABLE>



38

<PAGE>   41



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


        The net tax effects of temporary differences that give rise to
        significant portions of the deferred tax assets and liabilities at June
        30, 2001 and 2000 are:

<TABLE>
<CAPTION>
                                                                                            2001             2000
                                                                                      ---------------     --------------
<S>                                                                                 <C>                 <C>
        Deferred tax assets:
            Loan loss and other reserves                                               $    1,188,320         1,166,543
            Other                                                                             206,027           151,741
                                                                                       --------------     -------------

                  Total gross deferred tax assets                                           1,394,347         1,318,284

        Less valuation allowance                                                                   --                --
                                                                                       --------------     -------------

                  Net deferred tax assets                                                   1,394,347         1,318,284
                                                                                       --------------     -------------

        Deferred tax liabilities:
            Deferred loan fees, net                                                           421,069           411,289
            FHLB stock dividend                                                               845,427           717,315
            Unrealized gains on loan sales, net                                               116,711           192,334
            Originated mortgage servicing asset                                               436,791           283,396
            Basis differences - fixed assets                                                  874,116           797,507
            Other                                                                             199,094           178,590
                                                                                       --------------     -------------

                  Total gross deferred tax liabilities                                      2,893,208         2,580,431
                                                                                       --------------     -------------

                  Net deferred tax liability                                           $   (1,498,861)       (1,262,147)
                                                                                       ==============     =============
</TABLE>

        A valuation allowance is established to reduce the deferred tax asset if
        it is more likely than not that the related tax benefits will not be
        realized. In management's opinion, it is more likely than not that the
        tax benefits will be realized; consequently, no valuation allowance has
        been established as of June 30, 2001 or 2000.

        Retained earnings at June 30, 2001 include approximately $4,516,000 for
        which no provision for federal income tax has been made. This amount
        represents allocations of income during years prior to 1988 to bad debt
        deductions for tax purposes only. These qualifying and nonqualifying
        base year reserves and supplemental reserves will be recaptured into
        income in the event of certain distributions and redemptions. Such
        recapture would create income for tax purposes only, which would be
        subject to the then current corporate income tax rate. Recapture would
        not occur upon the reorganization, merger, or acquisition of the Bank,
        nor if the Bank is merged or liquidated tax-free into a bank or
        undergoes a charter change. If the Bank fails to qualify as a bank or
        merges into a nonbank entity, these reserves will be recaptured into
        income.

        The favorable reserve method previously afforded to thrifts was repealed
        for tax years beginning after December 31, 1995. Large thrifts were
        required to switch to the specific charge-off method of section 166. In
        general, a thrift is required to recapture the amount of its qualifying
        and nonqualifying reserves in excess of its qualifying and nonqualifying
        base year reserves. The Bank has no such excess reserves to recapture.

                                                                              39

<PAGE>   42



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

(11)    LEASES

        Future minimum payments under noncancelable operating leases with
        initial or remaining terms of one year or more consisted of the
        following at June 30, 2001:

        YEAR ENDING JUNE 30,

        2002                                         $     934,688
        2003                                               883,149
        2004                                               778,773
        2005                                               642,531
        2006                                               546,700
        Thereafter                                       1,115,300
                                                     -------------

        Total minimum lease payments                 $   4,901,141
                                                     =============

        During the years ended June 30, 2001, 2000, and 1999, rental expense
        was $809,169, $593,331 and $460,313, respectively.

(12)    COMMITMENTS AND CONTINGENCIES

        In the normal course of business, the Bank enters into commitments with
        off-balance sheet risk to meet the financing needs of its customers.
        Commitments to extend credit involve elements of credit risk and
        interest rate risk in excess of the amount recognized in the
        consolidated statements of financial condition. The Bank's exposure to
        credit loss in the event of nonperformance by the other party to the
        commitment is represented by the contractual amount of the commitment.
        The Bank uses the same credit policies in making commitments as it does
        for on-balance sheet instruments. Interest rate risk on commitments to
        extend credit results from the possibility that interest rates may have
        moved unfavorably from the position of the Bank since the time the
        commitment was made.

        Commitments to extend credit are agreements to lend to a customer as
        long as there is no violation of any condition established in the
        contract. Commitments generally have fixed expiration dates of 60 to 120
        days or other termination clauses and may require payment of a fee.
        Since some of the commitments may expire without being drawn upon, the
        total commitment amounts do not necessarily represent future cash
        requirements.

        The Bank evaluates each customer's creditworthiness on a case-by-case
        basis. The amount of collateral obtained by the Bank upon extension of
        credit is based on management's credit evaluation of the applicant.
        Collateral held is generally residential and commercial real estate.

        The Bank's lending is concentrated in Northeastern Ohio, and as a
        result, the economic conditions and market for real estate in
        Northeastern Ohio could have a significant impact on the Bank.


40
<PAGE>   43



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

        At June 30, 2001 and 2000, the Bank had the following commitments:

<TABLE>
<CAPTION>
                                                                                            2001             2000
                                                                                      ----------------- ----------------

<S>                                                                                 <C>                 <C>
        Commitments to sell mortgage loans in the secondary market                  $         100,000         1,024,479
        Commitments to fund variable mortgage loans                                        37,223,216        28,615,700
        Commitments to fund fixed mortgage loans                                           18,667,550         4,304,905
</TABLE>

        There are pending against the Company various lawsuits and claims which
        arise in the normal course of business. In the opinion of management,
        any liabilities that may result from pending lawsuits and claims will
        not materially affect the financial position of the Company.

(13)    REGULATORY CAPITAL

        The Company is subject to various regulatory capital requirements
        administered by the federal banking agencies. Failure to meet minimum
        capital requirements can initiate certain mandatory and possibly
        additional discretionary actions by regulators that, if undertaken,
        could have a direct material effect on the Company's financial
        statements. Under capital adequacy guidelines and the regulatory
        framework for prompt corrective action, the Company must meet specific
        capital guidelines that involve quantitative measures of the Company's
        assets, liabilities, and certain off-balance-sheet items as calculated
        under regulatory accounting practices. The Company's capital amounts and
        classification are also subject to qualitative judgments by the
        regulators about components, risk weightings, and other factors.

        Office of Thrift Supervision (OTS) regulations requires savings
        institutions to maintain certain minimum levels of regulatory capital.
        An institution that fails to comply with its regulatory capital
        requirements must obtain OTS approval of a capital plan and can be
        subject to a capital directive and certain restrictions on its
        operations. At June 30, 2001, the minimum regulatory capital regulations
        require institutions to have equity capital to total tangible assets of
        1.5%; a minimum leverage ratio of core (Tier 1) capital to total
        adjusted tangible assets of 3%; and a minimum ratio of total capital to
        risk weighted assets of 8%. At June 30, 2001, the Bank exceeded all of
        the aforementioned regulatory capital requirements.


                                                                              41
<PAGE>   44



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

        The most recent notification from the Office of Thrift Supervision
        categorized the Company as well capitalized under the regulatory
        framework for prompt corrective action. To be categorized as well
        capitalized the Company must maintain minimum total risk-based, Tier 1
        risk-based, and Tier 1 leverage ratios as set forth in the table. There
        are no conditions or events since that notification that management
        believes have changed the institution's category.

        At June 30, 2001 and 2000, the Bank was in compliance with regulatory
        capital requirements as set forth below (dollars in thousands):

<TABLE>
<CAPTION>
                                                                              CORE/          TIER-1           TOTAL
                                                             EQUITY         LEVERAGE       RISK-BASED      RISK-BASED
                                                             CAPITAL        CAPITAL         CAPITAL         CAPITAL
                                                          --------------- --------------  --------------  --------------
<S>                                                     <C>                    <C>             <C>             <C>
        June 30, 2001:
           GAAP capital                                 $      47,698          47,698          47,698          47,698
           Nonallowable component                                                (209)           (209)           (209)
           General loan valuation allowances                                       --              --           3,495
                                                                          --------------  --------------  --------------

                 Regulatory capital                                            47,489          47,489          50,984

           Total assets                                       735,500

           Adjusted total assets                                              735,291

           Risk-weighted assets                                                               496,709         496,709

           Actual capital ratio                                6.49%           6.46%           9.56%          10.26%

           Regulatory requirement                              1.50%           3.00%                           8.00%

           Regulatory capital category -
             well-capitalized -
               equal to or greater than                                        5.00%           6.00%          10.00%
</TABLE>




42
<PAGE>   45
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


<TABLE>
<CAPTION>
                                                                              CORE/          TIER-1           TOTAL
                                                              EQUITY        LEVERAGE       RISK-BASED      RISK-BASED
                                                              CAPITAL        CAPITAL         CAPITAL         CAPITAL
                                                          --------------- --------------  --------------  --------------
<S>                                                     <C>                    <C>             <C>             <C>
        June 30, 2000:
           GAAP capital                                 $      40,994          40,994          40,994          40,994
           General loan valuation allowances                                       --              --           3,386
                                                        -------------     --------------  --------------  --------------

                 Regulatory capital                                            40,994          40,994          44,380

           Total assets                                       613,695

           Adjusted total assets                                              613,695

           Risk-weighted assets                                                               443,612         443,612

           Actual capital ratio                                 6.68%           6.68%           9.24%          10.00%

           Regulatory requirement                               1.50%           3.00%                           8.00%

           Regulatory capital category -
             well-capitalized -
               equal to or greater than                                         5.00%           6.00%          10.00%
</TABLE>

(14)    STOCK OPTIONS

        The Bank offered stock options to the directors and officers of the bank
        under a 1992 plan, a 1996 plan, and a 2000 plan.

        Under the 1992 plan 85,000 options were originally authorized and
        granted, which are exercisable for a ten-year period and can be
        exercised at any time. All options under the 1992 plan have been both
        issued and granted, and 202, 482 options, adjusted to reflect all stock
        dividends, remain outstanding at June 30, 2001.

        Under the 1996 plan, in fiscal year 1997, 21,400 options were originally
        authorized and granted, in fiscal year 1998, 21,700 options were
        originally authorized and granted, in fiscal year 1999, 21,700 options
        were originally authorized and granted, in fiscal year 2000, 53,300
        options were originally authorized and granted and in fiscal year 2001,
        64,700 options were originally authorized and granted. The options are
        exercisable for a ten-year period, with a vesting period ranging from
        zero to five years as stated in the individual option agreements. As of
        June 30, 2001, 254,583 options, adjusted to reflect all stock dividends,
        remain as issued but outstanding, and 74, 839 options are still
        available to be issued.


                                                                              43

<PAGE>   46

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


        As of June 30, 2001, no options have been issued under the 2000 plan.

        Options were granted at fair market value and, accordingly, no charges
        were reflected in compensation and benefits expense due to the granting
        of stock options. The excess of the option price over the par value of
        the shares purchased through the exercise of stock options is credited
        to additional capital:

<TABLE>
<CAPTION>
                                       2001                    2000                       1999
                              ----------------------   -----------------------   -----------------------
                                             AVERAGE                   AVERAGE                  AVERAGE
                                             OPTION                    OPTION                   OPTION
                               SHARES        PRICE      SHARES         PRICE      SHARES        PRICE
                              --------       -------   --------       -------     -------      -------
<S>                           <C>           <C>       <C>           <C>         <C>          <C>
Outstanding beginning of
   year                        405,748          5.09    346,073       $  3.95     317,190      $  3.51
Exercised                      (22,878)         1.68     (4,818)         1.68          --           --
Expired                             --            --         --            --          --           --
Granted                         74,195          9.02     64,493         10.69      28,883         8.72
                              --------       -------   --------       -------     -------      -------

Outstanding end of year        457,065          5.93    405,748       $  5.09     346,073      $  3.95
                              ========       =======   ========       =======     =======      =======

Exercisable end of year        367,032          4.99    310,083       $  5.09     279,216      $  3.95
                              ========       =======   ========       =======     =======      =======
</TABLE>

        As of June 30, 2001, options outstanding have exercise prices between
        $1.68 and $11.36 and a weighted average remaining contractual life of
        4.5 years.

        The Company has elected to disclose pro forma net income and net income
        per share as if the fair-value-based method had been applied in
        measuring compensation costs. The Company's pro forma information for
        the years ended June 30:

<TABLE>
<CAPTION>
                                                           2001                2000            1999
                                                       -------------      -------------     -------------
<S>                                                    <C>              <C>               <C>
Net income                                             $   6,635,878          6,312,330         7,719,287
Less:  Pro forma compensation expense, net of tax            129,146             90,372            48,427
                                                       -------------      -------------     -------------
                  Pro forma earnings                   $   6,506,732          6,221,958         7,670,860
                                                       =============      =============     =============
Basic earnings per share                               $        1.27               1.20              1.45
                                                       =============      =============     =============

Pro forma basic earnings per share                     $        1.25               1.18              1.44
                                                       =============      =============     =============

Diluted earning per share                              $        1.23               1.16              1.40
                                                       =============      =============     =============

Pro forma diluted earnings per share                   $        1.21               1.15              1.39
                                                       =============      =============     =============
</TABLE>

The above results may not be representative of the effects of SFAS No. 123 on
net income for future years.

44

<PAGE>   47
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


        The fair value of each option grant is estimated on the date of grant
        using the Black-Scholes option-pricing model with the following
        assumptions used for grants in 2001, 2000, and 1999; expected dividend
        yield of 2%, and expected option lives of 7 years; expected volatility
        of 30% in 2001, 2000 and 1999 and average risk free interest rates of
        5.71 %, 6.14 %, and 4.33 %, respectively.

        Pursuant to the terms of the plans, share information and exercise
        prices have been adjusted to reflect the impact of stock splits and
        dividends subsequent to the granting dates of the options.

(15)    EARNINGS PER SHARE

        Reconciliation of basic earnings per share to diluted earnings per share
for the years ended June 30:

<TABLE>
<CAPTION>
                                                              2001
                                             ------------------------------------------
                                                                              PER-SHARE
                                             NET INCOME        SHARES          AMOUNT
                                             ----------      ----------     ----------
<S>                                        <C>                 <C>                 <C>
Basic EPS
Income available to common shareholders      $6,635,878       5,214,672           1.27
Effect of stock options                              --         177,035           0.04
                                             ----------      ----------     ----------
Diluted EPS
Income available to common shareholders      $6,635,878       5,391,707           1.23
                                             ==========      ==========     ==========
</TABLE>

<TABLE>
<CAPTION>
                                                              2000
                                             ------------------------------------------
                                                                              PER-SHARE
                                             NET INCOME        SHARES          AMOUNT
                                             ----------      ----------     ----------
<S>                                        <C>                 <C>                 <C>
Basic EPS
Income available to common shareholders      $6,312,330       5,261,209           1.20
Effect of stock options                              --         195,747           0.04
                                             ----------      ----------     ----------
Diluted EPS
Income available to common shareholders      $6,312,330       5,456,956           1.16
                                             ==========      ==========     ==========
</TABLE>

<TABLE>
<CAPTION>
                                                              1999
                                             ------------------------------------------
                                                                              PER-SHARE
                                             NET INCOME        SHARES          AMOUNT
                                             ----------      ----------     ----------
<S>                                        <C>                 <C>                 <C>

Basic EPS
Income available to common shareholders      $7,719,287       5,311,765           1.45
Effect of stock options                              --         195,117           0.05
                                             ----------      ----------     ----------
Diluted EPS
Income available to common shareholders      $7,719,287       5,506,882           1.40
                                             ==========       =========     ==========
</TABLE>


                                                                              45
<PAGE>   48
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

(16)    FAIR VALUE OF FINANCIAL INSTRUMENTS

        The estimated fair value amounts have been determined by the Bank using
        available market information and appropriate valuation methodologies.
        However, considerable judgment is necessarily required to interpret
        market data to develop the estimates of fair value. Accordingly, the
        estimates presented herein are not necessarily indicative of the amounts
        the Bank could realize in a current market exchange. The use of
        different market assumptions and/or estimation methodologies may have a
        material effect on the estimated fair value amounts.

<TABLE>
<CAPTION>
                                                                  JUNE 30, 2001                   JUNE 30, 2000
                                                         ----------------------------------------------------------------
                                                            CARRYING     ESTIMATED FAIR  CARRYING AMOUNT    ESTIMATED
                                                             AMOUNT           VALUE                         FAIR VALUE
                                                         --------------- -------------------------------- ---------------
<S>                                                    <C>              <C>             <C>              <C>
        Assets:
           Cash and amounts due from depository
              institutions                             $      8,144,926       8,144,926       3,806,575        3,806,575
           Interest-bearing deposits                          1,200,192       1,200,192         815,280          815,280
           Federal funds sold                                56,050,000      56,050,000       1,050,000        1,050,000
           Securities held to maturity                       50,211,605      50,211,605      65,258,853       63,853,318
           Mortgage-backed securities held to maturity
                                                             18,123,936      18,585,184       1,215,045        1,200,418
           Loans receivable held for:
               Long-term investment, net                    573,643,498     580,385,000     513,669,748      511,085,000
               Sale, net                                      6,151,814       6,198,747      10,737,721       10,737,721
           Stock in the Federal Home Loan Bank of
              Cincinnati                                      9,442,305       9,442,305       5,841,227        5,841,227

        Liabilities:
           Demand deposits and passbook savings        $     84,344,129      84,344,129      81,430,707       81,430,707
           Time deposits                                    396,188,021     401,746,000     359,551,152      359,551,152
           Advances from the Federal Home loan Bank of
              Cincinnati                                    185,866,855     186,563,000     114,973,840      114,334,000
           Notes payable                                      4,700,000       4,700,000       1,000,000        1,000,000
</TABLE>


46
<PAGE>   49

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


        Cash and amounts due from depository institutions, interest bearing
        deposits, and federal funds sold. The carrying amount is a reasonable
        estimate of fair value because of the short maturity of these
        instruments.

        Securities and mortgage-backed securities. Estimated fair value for
        securities and mortgage-backed securities is based on quoted market
        prices.

        Loans receivable held for investment and held for sale. For loans
        receivable held for sale, fair value is estimated using the quoted
        market prices for securities backed by similar loans, adjusted for
        differences in loan characteristics. For performing loans receivable
        held for investment, fair value is estimated by discounting contractual
        cash flows adjusted for prepayment estimates using discount rates based
        on secondary market sources adjusted to reflect differences in servicing
        and credit costs. For other loans, cash flows and maturities are
        estimated based on contractual interest rates and historical experience
        and are discounted using secondary market rates adjusted for differences
        in servicing and credit costs.

        Fair value for significant nonperforming loans is based on recent
        external appraisals. If appraisals are not available, estimated cash
        flows are discounted using a rate commensurate with the risk associated
        with the estimated cash flows. Assumptions regarding credit risk, cash
        flows, and discount rates are judgmentally determined using available
        market information and specific borrower information.

        Stock in the Federal Home Loan Bank of Cincinnati. This item is valued
        at cost, which represents redemption value and approximates fair value.

        Demand deposits and time deposits. The fair value of demand deposits,
        savings accounts, and certain money market deposits is the amount
        payable on demand at the reporting date. The fair value of
        fixed-maturity certificates of deposit is estimated using discounted
        cash flows and rates currently offered for deposits of similar remaining
        maturities.

        Advances from the Federal Home Loan Bank of Cincinnati. The fair value
        of the Bank's FHLB debt is estimated based on the current rates offered
        to the Bank for debt of the same remaining maturities.

        Notes payable. The carrying value of the Company's variable rate note
        payable is a reasonable estimate of fair value based on the current
        incremental borrowing rate for similar types of borrowing arrangements.

        Off-balance sheet instruments. The fair value of commitments is
        estimated using the fees currently charged to enter similar agreements,
        taking into account the remaining terms of the agreements and the
        counterparties' credit standing. For fixed-rate loan commitments, fair
        value also considers the difference between current levels of interest
        rates and the committed rates. The fair value of undisbursed lines of
        credit is based on fees currently charged for similar agreements or on
        estimated cost to terminate them or otherwise settle the obligations
        with the counterparties at the reporting date. The carrying amount and
        fair value of off-balance sheet instruments is not significant as of
        June 30, 2001 and 2000.


                                                                              47
<PAGE>   50
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999



(17) SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

     The following is a summary of the unaudited consolidated quarterly results
     of operations for 2001 and 2000 (in thousands of dollars, except per share
     data): (1)

<TABLE>
<CAPTION>
                                      QUARTERS FOR THE YEAR ENDED JUNE 30, 2001
                                     ------------------------------------------
                                      FIRST       SECOND      THIRD      FOURTH
                                     -------      ------      ------      ------
<S>                                  <C>          <C>         <C>         <C>
Interest income                      $13,202      13,856      13,266      13,639
Interest expense                       8,365       8,931       8,256       8,567
                                     -------      ------      ------      ------

          Net interest income          4,837       4,925       5,010       5,072

Provision for losses on loans             --          --          75         150
Noninterest income                       441         589         566       1,108
Noninterest expense                    2,841       3,043       3,222       3,215
                                     -------      ------      ------      ------

          Income before taxes          2,437       2,471       2,279       2,815

Federal income taxes                     808         829         771         957
                                     -------      ------      ------      ------

          Net income                 $ 1,629       1,642       1,508       1,858
                                     =======      ======      ======      ======

Basic earnings per share (2)         $  0.31        0.31        0.29        0.36
                                     =======      ======      ======      ======

Diluted earnings per share (2)       $  0.30        0.30        0.28        0.35
                                     =======      ======      ======      ======
</TABLE>




48
<PAGE>   51
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999



<TABLE>
<CAPTION>
                                       QUARTERS FOR THE YEAR ENDED JUNE 30, 2000
                                       ------------------------------------------
                                        FIRST      SECOND      THIRD      FOURTH
                                        ------      -----      ------      ------
<S>                                     <C>         <C>        <C>         <C>
Interest income                         $9,112      9,930      10,840      12,144
Interest expense                         4,900      5,437       6,421       7,215
                                        ------      -----      ------      ------

               Net interest income       4,212      4,493       4,419       4,929

Provision for losses on loans              350        100          --         400
Noninterest income                       1,016        657         327         681
Noninterest expense                      2,551      2,598       2,631       2,630
                                        ------      -----      ------      ------

               Income before taxes       2,327      2,452       2,115       2,580

Federal income taxes                       775        818         702         867
                                        ------      -----      ------      ------

               Net income               $1,552      1,634       1,413       1,713
                                        ======      =====      ======      ======

Basic earnings per share (2)            $ 0.29       0.31        0.27        0.33
                                        ======      =====      ======      ======

Diluted earnings per share (2)          $ 0.28       0.30        0.25        0.32
                                        ======      =====      ======      ======
</TABLE>


--------------------------------------------------

(1)  The total of the four quarterly amounts may not equal the full year amount
     due to rounding.

(2)  After giving effect to a 10% stock dividend, declared on July 25, 2000 and
     issued on September 1, 2000 and a 10% stock dividend, declared on July 25,
     2001 and issued on August 31, 2001.

                                                                              49

<PAGE>   52
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999


(18)    PARENT COMPANY

        The following condensed statements of financial condition as of June 30,
        2001 and 2000, and related condensed statements of operations and cash
        flows for the years ended June 30, 2001, 2000 and 1999 for PVF Capital
        Corp. should be read in conjunction with the consolidated financial
        statements and the notes thereto.

<TABLE>
<CAPTION>
                        CONDENSED STATEMENTS OF FINANCIAL CONDITION               2001             2000
                        -------------------------------------------           -----------      ----------


<S>                                                                          <C>                  <C>
Cash and amounts due from depository institutions                            $    44,578          21,689
Prepaid expenses and other assets                                              3,279,888         492,305
Investment in subsidiaries, at equity in underlying value of net assets       49,396,610      42,428,540
                                                                             -----------      ----------

         Total assets                                                        $52,721,076      42,942,534
                                                                             ===========      ==========

Accrued expenses and other liabilities                                            14,941          42,471
Note payable                                                                   4,700,000              --

Stockholders' equity                                                          48,006,135      42,900,063
                                                                             -----------      ----------

         Total liabilities and stockholders' equity                          $52,721,076      42,942,534
                                                                             ===========      ==========
</TABLE>


<TABLE>
<CAPTION>
              CONDENSED STATEMENTS OF OPERATIONS                  2001              2000          1999
              ----------------------------------               -----------       ---------      ---------
<S>                                                           <C>                 <C>            <C>
Income:
   Mortgage banking activities                                 $   213,171         251,349        310,930
   Other, net                                                           --          12,261             --
                                                               -----------       ---------      ---------

                                                                   213,171         263,610        310,930
                                                               -----------       ---------      ---------
Expenses:
   Interest expense                                                304,688              --             --
   General and administrative                                      184,532         206,579        249,630
                                                               -----------       ---------      ---------
                                                                   489,220         206,579        249,630
                                                               -----------       ---------      ---------
     (Loss) income before federal income taxes and
         equity in undistributed net income of
         subsidiaries                                             (276,049)         57,031         61,300

Federal income taxes                                                93,856          20,267         20,950
                                                               -----------       ---------      ---------

     (Loss) income before equity in undistributed
         net income of subsidiaries                               (182,193)         36,764         40,350

Equity in undistributed net income of subsidiaries               6,818,071       6,275,566      7,678,937
                                                               -----------       ---------      ---------

         Net income                                            $ 6,635,878       6,312,330      7,719,287
                                                               ===========       =========      =========
</TABLE>


50
<PAGE>   53

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999



<TABLE>
<CAPTION>
                CONDENSED STATEMENTS OF CASH FLOWS              2001            2000               1999
                ----------------------------------        --------------- --------------   ------------------
<S>                                                        <C>                 <C>              <C>
Operating activities:
   Net income                                              $  6,635,878        6,312,330        7,719,287
   Equity in undistributed net income of subsidiaries        (6,818,071)      (6,275,566)      (7,678,937)
   Repayment of advance from subsidiary                      10,175,000        1,890,000               --
   Other, net                                                (6,890,112)        (436,314)        (221,796)
                                                           ------------       ----------       ----------

         Net cash provided by (used in) operating
           activities                                         3,102,695        1,490,450         (181,446)
                                                           ------------       ----------       ----------

Investing activities:
   Investment in Parkview Federal Savings Bank                 (500,000)        (765,000)              --
                                                           ------------       ----------       ----------


         Net cash used in investing activities                 (500,000)        (765,000)              --
                                                           ------------       ----------       ----------

Financing activities:
   Repayment on note payable                                 (1,400,000)              --       (1,060,000)
   Proceeds from exercise of stock options                       38,405            8,083               --
   Cash paid in lieu of fractional shares                            --           (2,110)            (939)
   Dividends received from subsidiaries                         350,000        1,500,000        1,350,000
   Dividends paid                                            (1,378,774)      (1,372,120)
   Purchase of Treasury stock                                  (189,437)        (901,928)         (71,250)
                                                           ------------       ----------       ----------

         Net cash provided by (used in) financing
           activities                                        (2,579,806)        (768,075)         217,811
                                                           ------------       ----------       ----------

         Net increase (decrease) in cash and cash
           equivalents                                           22,889          (42,625)          36,365

Cash and cash equivalents at beginning of year                   21,689           64,314           27,949
                                                           ------------       ----------       ----------

Cash and cash equivalents at end of year                   $     44,578           21,689           64,314
                                                           ============       ==========       ==========
</TABLE>

                                                                              51

<PAGE>   54

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 2001, 2000, and 1999

(19)    401(k) SAVINGS PLAN

        Employees who have reached age 18 and have completed one year of
        eligibility service are eligible to participate in the Company's 401(k)
        Savings Plan. The plan allowed eligible employees to contribute up to 7%
        of their compensation through December 31, 2000 and allows up to 15%,
        beginning on January 1, 2001, with the Company matching up to 50% of the
        first 4% contributed by the employee, as determined by the Company for
        the contribution period. The plan also permits the Company to make a
        profit sharing contribution at its discretion up to 4% of the employee's
        compensation. Participants vest in the Company's contributions as
        follows:

                 YEARS OF SERVICE                       PERCENT VESTED
                                                       -------------------

                 Less than 2                        $          0%
                 2 but less than 3                            20
                 3 but less than 4                            40
                 4 but less than 5                            60
                 5 but less than 6                            80
                 6 or more                                   100

        The total of the Company's matching and profit sharing contribution cost
        related to the plan for the years ended June 30, 2001, 2000, and 1999
        was $83,255, $78,295, and $79,638, respectively.



52
<PAGE>   55

[LOGO] PVF CAPITAL CORP.

Board of Directors

JOHN R. MALE
Chairman of the Board and
Chief Executive Officer

C. KEITH SWANEY
President, Chief Operating Officer
and Treasurer

ROBERT K. HEALEY
Retired

STANLEY T. JAROS
Partner
Moriarty & Jaros, P.L.L.

CREIGHTON E. MILLER
Partner
Miller, Stillman & Bartel

STUART D. NEIDUS
Chairman and
Chief Executive Officer
Anthony & Sylvan Pools Corporation

ROBERT F. URBAN
Retired


Executive Officers

JOHN R. MALE
Chairman of the Board and
Chief Executive Officer

C. KEITH SWANEY
President, Chief Operating Officer
and Treasurer

JEFFREY N. MALE
Vice President and Secretary

General Information

INDEPENDENT
CERTIFIED ACCOUNTANTS
KPMG LLP
One Cleveland Center
1375 East Ninth Street
Suite 2600
Cleveland, Ohio 44114

GENERAL COUNSEL
Moriarty & Jaros, P.L.L.
30195 Chagrin Boulevard
Suite 110 North
Pepper Pike, Ohio 44124

TRANSFER AGENT AND REGISTRAR
Fifth Third Bank
Corporate Trust Services
Mail Drop 10AT66-3212
38 Fountain Square
Cincinnati, Ohio 45263

SPECIAL COUNSEL
Stradley Ronon Housley Kantarian & Bronstein, LLP
1220 19th Street, N.W., Suite 700
Washington, D.C. 20036

STOCK LISTING
NASDAQ Small-Cap Market
Symbol:  PVFC

ANNUAL MEETING
The 2001 Annual Meeting of Stockholders will be held on October 22, 2001 at
10:00 a.m. at the Hilton Cleveland East, 3663 Park East Drive, Beachwood, Ohio.

ANNUAL REPORT ON FORM 10-K
A copy of the Company's Annual Report on Form 10-K for the fiscal year ended
June 30, 2001 as filed with the Securities and Exchange Commission will be
furnished without charge to stockholders upon written request to the Corporate
Secretary, PVF Capital Corp., 30000 Aurora Road, Solon, Ohio 44139.

<PAGE>   56








































                                                       [LOGO] PVF CAPITAL CORP.
                                                       Corporate Center
                                                       30000 Aurora Road
                                                       Solon, OH 44139
                                                       440-248-7171