<PAGE>   1
                                                                      Exhibit 13

                           [PVF CAPITAL CORP. LOGO]



                                Annual Report
                                June 30, 1999
<PAGE>   2
                                TABLE OF CONTENTS

Letter to Shareholders................................................2

Selected Consolidated Financial and Other Data........................4

Management's Discussion and Analysis of
Financial Condition and Results of Operations.........................6

Independent Auditors' Report.........................................16

<PAGE>   3

                               TO OUR SHAREHOLDERS


     We are pleased to announce that fiscal 1999 was another successful year for
PVF Capital Corp. With the assistance of a strong economy, we achieved record
earnings and substantial growth in loans, and made much progress toward
introducing new technology that will bring a higher level of service to our
customers, shareholders, and the communities we serve.

     Earnings were a record $7,719,000, or $1.70 diluted earnings per share, for
the year ended June 30, 1999. In addition, return on average assets was 1.77
percent and return on average common equity was 22.21 percent for fiscal 1999.

     In March 1999, the previously announced sale by PVF Service Corporation, a
wholly-owned subsidiary of PVF Capital Corp., of its 250-acre parcel of land in
Solon, Ohio to Cameratta Properties Limited was completed. This sale resulted in
an after-tax profit of approximately $2.5 million, or $0.55 diluted earnings per
share, for the year ended June 30, 1999.

     In June 1999, the Company announced a stock repurchase program to acquire
up to 5 percent of the outstanding common stock and a quarterly cash dividend
policy. The stock repurchase program and the cash dividend policy will be
dependent on the Company's financial condition, earnings, capital needs,
regulatory requirements, and market conditions. Also, in August 1999, the
company declared a 10 percent stock dividend.

     The continued consolidation of the banking industry has presented the
Company with new growth opportunities. Recent acquisition activity has reduced
competition among local community banks and has opened new markets to us for the
future expansion of our branch network. Park View Federal remains committed to
the community bank concept of providing its customers personalized service and
financial products that may not be available to them at large commercial banks.
With this in mind, we remain optimistic about the future role of community banks
and look to the future with much anticipation.

     In the coming year, Park View Federal is planning the following growth and
restructuring of its branch network.

         In November 1999, Park View Federal will relocate its Parma, Ohio
         branch to North Royalton, Ohio. This new full-service branch office
         will be equipped with an ATM machine and will be located near the
         northeast corner of Route 82 and Ridge Road.

         In December 1999, Park View Federal will open a new branch office in
         Medina, Ohio. This new full-service branch office will also be equipped
         with an ATM machine and will be located in the Reserve Square Shopping
         Center on Route 18 just west of Interstate 71.

2                                          PVF Capital Corp. 1999 Annual Report
<PAGE>   4

         On or before March 31, 2000, Park View Federal is planning to relocate
         its North Moreland branch office near Shaker Square in Cleveland, Ohio
         to Shaker Towne Centre in Shaker Heights, Ohio. This move will provide
         our customers a more spacious office in a more easily accessible
         location with ample parking not available at the North Moreland
         facility. The administrative offices will remain at North Moreland.

     The reconfiguration of our branch network will give us a greater presence
in new higher-growth areas. These offices are expected to open new markets to us
in residential, construction, multi-family, and commercial real estate lending
and also increase our ability to attract consumer deposits. Upon completion,
Park View Federal will have a total of eleven full-service branch office
locations throughout northeast Ohio.

     On or before December 31, 1999, the Company is expecting to launch its Web
site on the Internet. This Web site will provide information about our products
and services, and allow our customers access to current loan and deposit rate
information. Our ultimate goal is to provide a full line of home banking
services to our customers, including the ability to make loan applications
on-line and access account balances and information. Other available features
will be a community news and updates bulletin board and calculators providing
analytical ability for our customers. Look for us at www.parkviewfederal.com.

     The Company has made every effort to ensure that the Bank will continue to
deliver financial services to its customers on an uninterrupted basis as we move
into the next century. All Y2K mission critical systems have been tested and
remediated. Also, in preparation for potential Y2K problems, the Company has
initiated a business resumption contingency plan and a customer awareness
program to educate and inform our customers of Y2K issues.

     Finally, we invite all shareholders to attend the Annual Meeting of
Stockholders of PVF Capital Corp. on Monday, October 18, 1999 at 10:00 a.m. at
the Cleveland Marriott 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
                                                     President

PVF Capital Corp. 1999 Annual Report                                       3
<PAGE>   5



                 SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA


FINANCIAL CONDITION DATA:
<TABLE>
<CAPTION>
                                                                           At June 30,
                                                       ----------------------------------------------------
                                                         1999       1998       1997       1996       1995
                                                       ----------------------------------------------------
(dollars in thousands)
<S>                                                   <C>        <C>        <C>        <C>        <C>
Total assets .......................................   $449,201   $433,279   $373,081   $331,634   $315,432
Loans receivable and mortgage-backed
  securities held for investment, net ..............    397,284    371,949    341,914    278,956    250,244
Loans receivable held for sale and
  mortgage-backed securities available for sale, net      1,772      1,645        710     18,817      4,451
Cash equivalents and securities ....................     35,423     51,017     23,576     27,884     53,812
Deposits ...........................................    331,242    344,229    288,270    271,045    272,290
FHLB advances and notes payable ....................     66,041     47,384     49,715     30,191     16,800
Stockholders' equity ...............................     38,856     31,209     26,273     22,474     18,818

Number of:
   Real estate loans outstanding ...................      3,527      2,676      2,648      2,527      2,512
   Savings accounts ................................     24,346     25,122     23,190     23,259     24,007
   Offices .........................................         10         10          9          9          9
</TABLE>


OPERATING DATA:
<TABLE>
<CAPTION>

                                                                        Year Ended June 30,
                                               --------------------------------------------------------------------
                                                 1999            1998           1997          1996           1995
                                               --------------------------------------------------------------------
(dollars in thousands except for earnings per share)
<S>                                           <C>            <C>            <C>            <C>            <C>
Interest income ........................        $35,347        $34,365        $30,963        $27,761        $22,941
Interest expense .......................         19,863         19,558         16,561         15,703         12,261
                                                -------        -------        -------        -------        -------
Net interest income
  before provision for loan losses .....         15,484         14,807         14,402         12,058         10,680
Provision for loan losses ..............              0            246            187            417            416
                                                -------        -------        -------        -------        -------
Net interest income
  after provision for loan losses ......         15,484         14,561         14,215         11,641         10,264
Non-interest income ....................          5,435          1,597          1,336          1,747          1,514
Non-interest expense ...................          9,649          8,851         10,000          7,989          7,177
                                                -------        -------        -------        -------        -------
Income before federal income tax expense         11,270          7,307          5,551          5,399          4,601
Federal income taxes ...................          3,551          2,379          1,904          1,613          1,244
                                                -------        -------        -------        -------        -------
Net income .............................        $ 7,719        $ 4,928        $ 3,647        $ 3,786        $ 3,357
                                                =======        =======        =======        =======        =======

Basic earnings per share ...............        $  1.76        $  1.14        $  0.86        $  0.90        $  0.80
                                                =======        =======        =======        =======        =======

Diluted earnings per share .............        $  1.70        $  1.09        $  0.81        $  0.84        $  0.76
                                                =======        =======        =======        =======        =======
</TABLE>

4                                          PVF Capital Corp. 1999 Annual Report
<PAGE>   6

<TABLE>
<CAPTION>
OTHER DATA:

                                                                           At or For the Year Ended June 30,
                                                               ------------------------------------------------------------
                                                                1999         1998         1997          1996         1995
                                                               ------------------------------------------------------------
<S>                                                             <C>          <C>          <C>          <C>          <C>
Interest rate spread information:
  Average during year.....................................        3.26%        3.38%        3.84%        3.45%        3.67%

Net interest margin.......................................        3.68%        3.78%        4.22%        3.90%        4.00%
Average interest-earning assets to
  average interest-bearing liabilities....................      108.92%      107.93%      107.93%      108.83%      107.08%

Non-accruing loans (> 90 days) and
  repossessed assets to total assets......................        0.85%        0.92%        1.11%        0.73%        1.14%

Stockholders' equity to total assets......................        8.65%        7.20%        7.04%        6.78%        5.97%

Return on average assets..................................        1.77%        1.23%        1.04%        1.19%        1.23%

Return on average equity .................................       22.21%       17.11%       15.19%       18.43%       19.61%

Ratio of average equity to
  average assets..........................................        7.95%        7.18%        6.84%        6.47%        6.26%
Dividend payout ratio.....................................        0.00%        0.00%         0.00%       0.00%        8.37%


BANK REGULATORY CAPITAL RATIOS:

Ratio of tangible capital to
  adjusted total assets...................................        7.99%        7.21%        7.34%        7.25%        6.10%
Ratio of core capital to
  adjusted total assets...................................        7.99%        7.21%        7.34%        7.25%        6.10%
Ratio of total capital to
  risk-weighted assets....................................       11.17%       10.93%       10.62%       11.42%       10.77%
</TABLE>

PVF Capital Corp. 1999 Annual Report                                          5
<PAGE>   7


        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, and PVF Service Corporation, a wholly-owned real estate subsidiary.
Park View Federal has ten offices located in Cleveland and surrounding
communities, including a recently opened branch in Chardon, 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, 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, competition that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected, and Year 2000 issues. 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, 1999, 1998, AND 1997

PVF had total assets of $449.2 million, $433.3 million, and $373.1 million at
June 30, 1999, 1998, and 1997, 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 $399.1 million, $373.6 million, and $342.6
million at June 30, 1999, 1998, and 1997, respectively. The increase of $25.5
million in net loans and mortgage-backed securities at June 30, 1999 resulted
primarily from increases in land loans, commercial real estate loans, and home
equity line of credit loans of $11.5 million, $10.8 million, and $4.2 million,
respectively. The Bank's current loans-to-one-borrower limitation was
approximately $4.0 million at June 30, 1999. In addition, securities totaled
$25.3 million, $27.8 million, and $14.0 million at the years ended June 30,
1999, 1998, and 1997, respectively. The increase of $25.5 million in net loans
and mortgage-backed securities and the decrease of $13.0 million in deposits at
June 30, 1999, were funded by an increase of $19.7 million in Federal Home Loan
Bank ("FHLB") advances, and decreases of $13.1 million in cash and cash
equivalents and $2.5 million in securities.

The securities portfolio has been and will continue to be used primarily to meet
the regulatory 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
that qualify as regulatory liquidity, federal funds sold, and deposits at the
FHLB of Cincinnati. Approximately $6.0 million, or 19.3 percent, of the
securities portfolio has a repricing period of one year or less, 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.

6                                          PVF Capital Corp. 1999 Annual Report
<PAGE>   8

The Bank's deposits totaled $331.2 million, $344.2 million, and $288.3 million
at June 30, 1999, 1998, and 1997, respectively. Advances from the FHLB of
Cincinnati amounted to $66.0 million, $46.3 million, and $47.4 million at June
30, 1999, 1998, and 1997, respectively. Management's decision to borrow
utilizing attractive FHLB advance rates rather than to aggressively compete with
market savings rates resulted in an increase in FHLB advances of $19.7 million
and a decrease in savings deposits of $13.0 million for the year ended June 30,
1999.

CAPITAL

PVF's stockholders' equity totaled $38.9 million, $31.2 million, and $26.3
million at the years ended June 30, 1999, 1998, and 1997, 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, 1999, 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:

<TABLE>
<CAPTION>
                               Park View                   Requirement for
                                Federal      Percent of    Well-Capitalized
(dollars in thousands)          Capital       Assets (1)     Institution
                               --------------------------------------------
<S>                            <C>             <C>
GAAP capital                     $35,950         7.99%          N/A
Tangible capital                 $35,950         7.99%          N/A
Core capital                     $35,950         7.99%         5.00%
Tier 1 risk-based capital        $35,950        10.43%         6.00%
Risk-based capital               $38,524        11.17%        10.00%
</TABLE>

(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 August 1995, a
three-for-two stock split effected in the form of a dividend was issued in
August 1996, 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, and a 10 percent stock dividend was issued in September 1999. As
adjusted to reflect all stock dividends and all stock splits, the Company had
4,389,742 shares of common stock outstanding and approximately 320 holders of
record of the common stock at September 7, 1999. 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.
The stock repurchase program will be dependent on market conditions with no
guarantee as to the exact number of shares to be repurchased, while the cash
dividend policy will be dependent upon the Company's financial condition,
earnings, capital needs, regulatory requirements, and economic conditions.

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

<TABLE>
<CAPTION>
                               ---------------------------------------------
                                   Fiscal 1999               Fiscal 1998
                               -------------------       -------------------
                               High Bid    Low Bid       High Bid    Low Bid
<S>                           <C>          <C>           <C>         <C>
Fourth Quarter                  $12.95      $ 9.55        $17.12      $14.47
Third Quarter                    12.95       10.45         14.55       11.52
Second Quarter                   12.39        8.86         12.57       11.52
First Quarter                    15.61        9.55         13.03       10.98
</TABLE>

(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, and 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.

PVF Capital Corp. 1999 Annual Report                                          7
<PAGE>   9

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, 1999, the Bank had
commitments to originate loans totaling $52.1 million and had $54.9 million of
undisbursed loans in process. Scheduled maturities of certificates of deposit
during the twelve months following June 30, 1999 totaled $216.4 million.
Management believes that a significant portion of the amounts maturing during
fiscal 2000 will be reinvested with the Bank because they are retail deposits,
however, no assurances can be made that this will occur.

Park View Federal is required by current OTS regulations to maintain specified
liquid assets of at least 4 percent of its net withdrawable accounts plus
short-term borrowings. Such investments serve as a source of liquid funds which
the Bank may use to meet deposit withdrawals and other short-term 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, 1999 was 9.8 percent, and its
short-term liquidity ratio was significantly above regulatory requirements.

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 Company's market risk is composed of interest rate risk.

Asset/Liability Management: The Company'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.

The Company'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 Company'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 Company 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

         PROFILE OF INTEREST SENSITIVE ASSETS
                    [PIE GRAPH]

Fixed rate other mortgage loans              (3.9%)
Fixed-rate single-family mortgage loans      (5.4%)
Adjustable-rate mortgage-backed securities   (0.4%)
Adjustable-rate other mortgage loans         (40.7%)
Adjustable-rate single-family mortgage loans (40.6%)
Overnight Fed Funds                          (1.3%)
Investment securities 60 months or less      (5.9%)
Consumer loans                               (1.8%)

8                                         PVF Capital Corp. 1999 Annual Report

<PAGE>   10

   PROFILE OF INTEREST SENSITIVE LIABILITIES
               [PIE GRAPH]
CDs 12 months or less                   (55.5%)
CDs 25 to 36 months                     (1.9%)
CDs 13 to 24 months                     (8.1%)
CDs over 36 months                      (1.4%)
Transaction accounts                    (7.7%)
FHLB Advances over 36 months            (9.2%)
FHLB Advances 13 to 36 months           (1.3%)
FHLB Advances 12 months or less         (6.4%)
Passbook accounts                       (8.5%)


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 Company'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, 1999. All
market risk sensitive instruments presented in this table are held to maturity
or available for sale. The Bank has no trading securities.

(dollars in thousands)
<TABLE>
<CAPTION>
                    Change in    Market Value of    Dollar      Percentage
                  Interest Rates Portfolio Equity   Change        Change
                  -------------- ----------------   ------        ------
<S>                 <C>        <C>            <C>              <C>
                      +200        $  45,027      $  (1,398)       (0.3)%
                      +100           46,254           (171)        0.0
                         0           46,425
                      -100           45,571           (854)       (0.2)
                      -200           44,841         (1,584)       (0.4)

</TABLE>

The table indicates that at June 30, 1999, in the event of either an immediate
and sustained increase or decrease in prevailing market interest rates, the
Bank's NPV would not be materially impacted, but would be expected to decrease
slightly. This is the case, because of the current flatness of the yield curve
along with the borrowers' and/or lenders' ability to prepay or extend the terms
of loans, investments, deposits, and borrowings. 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, 1999, the Bank's estimated changes in NPV were well within the targets
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 quarter ended June 30, 1999, 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

PVF Capital Corp. 1999 Annual Report                                          9
<PAGE>   11

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.

In addition, 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 Company's interest rate sensitivity gap
analysis at June 30, 1999. The table indicates that the Company's one year and
under ratio of cumulative gap to total assets is negative 8.6 percent and
one-to-three year ratio of cumulative gap to total assets is negative 1.5
percent. The well-matched maturities along with the short-term repricing nature
of interest-rate-sensitive assets to interest-rate-sensitive liabilities
explains the Company's strong NPV position to an immediate and sustained 1 and 2
percent increase or decrease in market interest rates.

<TABLE>
<CAPTION>
                                                                   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.........................     $206,643    $110,046    $ 84,882    $ 28,768    $430,339
Total interest-rate-sensitive liabilities....................      245,277      78,101      17,944      48,778     390,100
Periodic GAP.................................................      (38,634)     31,945      66,938     (20,010)     40,239
Cumulative GAP...............................................      (38,634)     (6,689)     60,249      40,239
Ratio of cumulative GAP to total assets......................         (8.6)%      (1.5)%      13.4%        9.0%
</TABLE>

                             RESULTS OF OPERATIONS

GENERAL

PVF Capital Corp.'s net income for the year ended June 30, 1999 was $7.7
million, or $1.76 basic earnings per share and $1.70 diluted earnings per share,
as compared to $4.9 million, or $1.14 basic earnings per share and $1.09 diluted
earnings per share for fiscal 1998, and $3.6 million, or $0.86 basic earnings
per share and $0.81 diluted earnings per share for fiscal 1997. All per share
amounts have been adjusted for stock dividends and stock splits.

Net income for the current year increased by $2.8 million from the prior fiscal
year and exceeded net income for fiscal 1997 by $4.1 million. 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. In fiscal 1997, the Bank recorded a one-time special
assessment to recapitalize the Savings Association Insurance Fund ("SAIF") that
required SAIF-insured savings institutions to pay 65.7 cents for every $100 of
deposits. This assessment was charged against earnings in fiscal 1997 and had an
after-tax impact of $1.1 million.

10                                        PVF Capital Corp. 1999 Annual Report
<PAGE>   12

NET INTEREST INCOME

Net interest income amounted to $15.5 million for the year ended June 30, 1999,
as compared to $14.8 million and $14.4 million for the years ended June 30, 1998
and 1997, respectively. The increase in net interest income of $0.7 million and
$0.4 million from the year ended June 30, 1998 to 1999 and from the year ended
June 30, 1997 to 1998, respectively, is due to changes in interest rates and
changes in volume of interest-earning assets and interest-bearing liabilities.
Tables 1 and 2 provide information as to change 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.

This table 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 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.

<TABLE>
<CAPTION>

Table 1                                                      AVERAGE BALANCES, INTEREST AND AVERAGE YIELDS AND RATES
                                                                             FOR THE YEAR ENDED JUNE 30,
                                                                 1999                                     1998
                                                 -------------------------------------------------------------------------------
                                                   Average                      Yield/     Average                      Yield/
(dollars in thousands)                             Balance     Interest          Cost      Balance      Interest         Cost
                                                 -------------------------------------------------------------------------------
<S>                                            <C>          <C>               <C>     <C>          <C>                <C>
Interest-earning assets:
  Loans ......................................   $  384,420   $   33,146         8.62%   $  361,308   $   32,500         9.00%
  Mortgage-backed securities .................        2,338          147         6.29         2,439          155         6.36
  Securities and other interest-earning
    assets ...................................       34,500        2,054         5.95        27,918        1,710         6.13
                                                 ----------   ----------                 ----------   ----------
    Total interest-earning assets ............      421,258       35,347         8.39       391,665       34,365         8.77
Non-interest-earning assets ..................       16,071   ----------                      9,291
                                                 ----------                              ----------
    Total assets .............................   $  437,329                              $  400,956
                                                 ==========                              ==========
Interest-bearing liabilities:
  Deposits ...................................   $  334,530   $   16,961         5.07    $  321,039   $   17,062         5.31
  FHLB advances ..............................       52,102        2,891         5.55        40,240        2,351         5.84
  Notes payable ..............................          122           11         9.02         1,604          145         9.04
                                                 ----------   ----------                 ----------   ----------
       Total interest-bearing liabilities           386,754       19,863         5.14       362,883       19,558         5.39
                                                              ----------         ----                 ----------         ----
  Non-interest-bearing liabilities............       15,818                                   9,267
                                                 ----------                              ----------
       Total liabilities .....................      402,572                                 372,150

Stockholders' equity..........................       34,757                                  28,806
                                                 ----------                              ----------

       Total liabilities and stockholders'
         equity ..............................   $  437,329                              $  400,956
                                                 ==========                              ==========
Net interest income ..........................                $   15,484                              $   14,807
                                                              ==========                              ==========
Interest rate spread .........................                                   3.26%                                   3.38%
                                                                                 ====                                    ====
Net yield on interest-earning assets .........                                   3.68%                                   3.78%
                                                                                 ====                                    ====
Ratio of average interest-earning assets
  to average interest-bearing liabilities ....       108.92%                                 107.93%
                                                 ==========                              ==========
</TABLE>

<TABLE>
<CAPTION>

Table 1                                  AVERAGE BALANCES, INTEREST AND AVERAGE YIELDS AND RATES
                                                      FOR THE YEAR ENDED JUNE 30,
                                                               1997
                                               --------------------------------------
                                                  Average                      Yield/
(dollars in thousands)                            Balance     Interest          Cost
                                               --------------------------------------
<S>                                            <C>          <C>                <C>
Interest-earning assets:
  Loans ......................................  $  317,453   $   29,419         9.27%
  Mortgage-backed securities .................       3,832          285         7.44
  Securities and other interest-earning
    assets ...................................      19,706        1,259         6.39
                                                ----------   ----------
    Total interest-earning assets ............     340,991       30,963         9.08
Non-interest-earning assets ..................       9,773   ----------
                                                ----------
    Total assets .............................  $  350,764
                                                ==========
Interest-bearing liabilities:
  Deposits ...................................  $  272,341   $   13,957         5.12
  FHLB advances ..............................      41,083        2,367         5.76
  Notes payable ..............................       2,510          237         9.44
                                                ----------   ----------
       Total interest-bearing liabilities          315,934       16,561         5.24
                                                             ----------         ----
  Non-interest-bearing liabilities............      10,825
                                                ----------
       Total liabilities .....................     326,759

Stockholders' equity..........................      24,005
                                                ----------

       Total liabilities and stockholders'
         equity ..............................  $   350,764
                                                ===========
Net interest income ..........................               $   14,402
                                                             ==========
Interest rate spread .........................                                  3.84%
                                                                                ====
Net yield on interest-earning assets .........                                  4.22%
                                                                                ====
Ratio of average interest-earning assets
  to average interest-bearing liabilities ....       107.93%
                                                ===========
</TABLE>

PVF Capital Corp. 1999 Annual Report                                       11
<PAGE>   13

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), changes relating to
rate (changes in average rate multiplied by average old volume), and changes
relating to rate and volume (changes in average rate multiplied by changes in
average volume).

As is evidenced by these tables, interest rate changes unfavorably affected the
Bank's net interest income for the years ended June 30, 1999 and 1998. Due to
the long-term nature of the Bank's loan portfolio and short-term nature of its
deposit portfolio, along with decreasing interest rates and a relatively flat
yield curve during much of the years ended June 30, 1999 and 1998, the Bank
experienced a decrease of 12 basis points in its interest rate spread to 3.26
percent for fiscal 1999 from 3.38 percent for fiscal 1998, and during fiscal
1998 its interest rate spread decreased 46 basis points from 3.84 percent for
fiscal 1997. These changes in average interest rate spread resulted in a
decrease in net interest income for the years ended June 30, 1999 and 1998 of
$0.5 million and $1.5 million, respectively, due to interest rate changes.

Net interest income was favorably affected by volume changes during the two
years ended June 30, 1999 and 1998. Accordingly, net interest income grew by
$1.2 million and $2.1 million due to volume changes for the years ended June 30,
1999 and 1998, respectively. Changes attributable to both rate and volume
impacted net interest income negatively during the years ended June 30, 1999 and
June 30, 1998.

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.
<TABLE>
<CAPTION>
      Table 2                                                           YEAR ENDED JUNE 30,
                                     --------------------------------------------------------------------------------------
                                             1999            vs.           1998        1998            vs.           1997
                                     -------------------------------------------- -----------------------------------------
                                                     Increase (Decrease)                       Increase (Decrease)
                                                           Due to                                    Due to
                                     -------------------------------------------- -----------------------------------------
                                                                 Rate/                                     Rate/
      (dollars in thousands)                Volume     Rate     Volume     Total      Volume      Rate    Volume     Total
                                     -------------------------------------------- -----------------------------------------
<S>                                  <C>        <C>        <C>        <C>        <C>        <C>        <C>        <C>
Interest income:
  Loans ...........................   $ 2,079    $(1,347)   $   (86)   $   646    $ 4,064    $  (864)   $  (119)   $ 3,081
  Mortgage-backed securities ......        (7)        (2)         0         (9)      (104)       (41)        15       (130)
  Securities and other
    interest-earning assets .......       403        (47)       (11)       345        525        (52)       (22)       451
                                      -------    -------    -------    -------    -------    -------    -------    -------
      Total interest-earning assets     2,475     (1,396)       (97)       982      4,485       (957)      (126)     3,402
                                      -------    -------    -------    -------    -------    -------    -------    -------
Interest expense:
  Deposits ........................       717       (784)       (33)      (100)     2,496        517         92      3,105
  FHLB advances ...................       693       (119)       (35)       539        (49)        34         (1)       (16)
  Other borrowings ................      (134)         0          0       (134)       (86)       (10)         4        (92)
                                      -------    -------    -------    -------    -------    -------    -------    -------
      Total interest-bearing
        liabilities ...............     1,276       (903)       (68)       305      2,361        541         95      2,997
                                      -------    -------    -------    -------    -------    -------    -------    -------
Net interest income ...............   $ 1,199    $  (493)   $   (29)       677    $ 2,124    $(1,498)   $  (221)   $   405
                                      =======    =======    =======        ===    =======    =======    =======    =======
</TABLE>

12                                        PVF Capital Corp. 1999 Annual Report
<PAGE>   14

PROVISION FOR LOAN LOSSES

Due to the increased risks associated with commercial real estate, construction,
and land loans, 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 Company 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 Company, 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, 1999,
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 Company 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 1999, the Company experienced growth in the loan portfolio of $26.7
million, or 7.2 percent, while maintaining the composition of the loan
portfolio. In addition, the level of impaired loans increased from $3.3 million
to $3.6 million, while allowance related to impaired loans decreased from
$89,000 to $55,000. The increase in the level of impaired loans caused the
percentage of allowance for loan losses to impaired loans to decrease from 82 to
72 percent. Net charge-offs decreased from $234,000 in 1998 to $57,000 in 1999.
Therefore, taking into consideration the growth of the portfolio, the lower
level of impaired loans to total loans, as well as the lower level of net
charge-offs, the overall performance of the portfolio, and adjustments made to
the systematic established reserve percentages, the Company made no provision
and maintained the allowance at a level deemed appropriate of $2.6 million.

During 1998, the Company experienced growth in the loan portfolio of $28.5
million, or 8.3 percent, while maintaining the composition of the loan
portfolio. In addition, the level of impaired loans decreased from $4.1 million
to $3.3 million, while allowance related to impaired loans increased from
$76,000 to $89,000. The decrease in the level of impaired loans caused the
percentage of allowance for loan losses to impaired loans to increase from 65 to
82 percent. Net charge-offs increased from $77,000 in 1997 to $234,000 in 1998.
Therefore, taking into consideration the growth of the portfolio, the lower
level of impaired loans, as well as the higher level of net charge-offs, and the
overall performance of the portfolio, the Company provided $246,000 of
additional provision to maintain the allowance at a level deemed appropriate of
$2.7 million.

NON-INTEREST INCOME

Non-interest income amounted to $5.4 million, $1.6 million, and $1.3 million for
the years ended June 30, 1999, 1998, and 1997, respectively. The fluctuations in
non-interest income are due primarily to fluctuations in income derived from
mortgage banking activities and fee income on deposit accounts. 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. The increase in non-interest income of $3.8
million for the year ended June 30, 1999 is primarily the result of a gain

PVF Capital Corp. 1999 Annual Report                                         13

<PAGE>   15

on the sale of real estate by PVF Service Corporation, a wholly-owned subsidiary
of PVF Capital Corp., attributable to the sale of its 250-acre parcel of land in
Solon, Ohio. Income from mortgage banking activities amounted to $1,023,000,
$869,000, and $663,000 for the years ended June 30, 1999, 1998, and 1997,
respectively. The increase in income from mortgage banking activities of
$154,000 from the year ended June 30, 1998 to 1999 is primarily due to an
increase in net profit realized on the sale of loans. Other non-interest income
amounted to $611,000, $727,000, and $673,000 for the years ended June 30, 1999,
1998, and 1997, respectively. Changes in other non-interest income are the
result of service and other miscellaneous fee income, 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 $9.6 million, $8.9 million, and $10.0 million
for the years ended June 30, 1999, 1998, and 1997, respectively. The principal
component of non-interest expense is compensation and related benefits which
amounted to $4.8 million, $4.5 million, and $4.4 million for the years ended
June 30, 1999, 1998, and 1997, respectively. The increase in compensation for
the years ended June 30, 1999 and 1998 is due primarily to growth in the staff,
the opening of a new branch in fiscal 1998, employee 401K benefits, a
compensation incentive plan for both management and loan originators, and
inflationary salary and wage adjustments to employees. Office occupancy totaled
$1.8 million, $1.6 million, and $1.6 million for the years ended June 30, 1999,
1998, and 1997, respectively. The increased occupancy expense is attributable to
maintenance and repairs to office buildings, and the cost of opening and
operating an additional branch office. Other non-interest expense totaled $3.0
million, $2.7 million, and $4.0 million for the years ended June 30, 1999, 1998,
and 1997, respectively. Changes in other non-interest expense are the result of
advertising, professional and legal services, regulatory and insurance expenses,
and franchise tax expense. The decrease in other non-interest expense of $1.3
million from the year ended June 30, 1997 to 1998 is primarily attributable to
the payment of the SAIF assessment in fiscal 1997. The increase in other
non-interest expense of $0.3 million from the year ended June 30, 1998 to 1999
is attributable to increased legal expenses. Information pertaining to these
expenses is set forth in Item 3 of Form 10-K.

FEDERAL INCOME TAXES

The Bank's federal income tax expense was $3.6 million, $2.4 million, and $1.9
million for the years ended June 30, 1999, 1998, and 1997, respectively. Due to
the availability of tax credits for the year ended June 30, 1998 and 1999, and
other miscellaneous deductions, the Bank's effective federal income tax rate was
below the expected tax rate of 35 percent with an effective rate of 32, 33, and
34 percent for the years ended June 30, 1999, 1998, and 1997, respectively.

YEAR 2000

Park View Federal realizes the challenges of the Year 2000 (Y2K) issue and, in
compliance with federal regulators, has assembled a project team to assess and
remediate any deficient system in use within the Bank. A formal plan, approved
by the Board of Directors, called for the inventory of all internal systems and
third-party relationships to determine the impact on Bank operations. Following
this assessment, correction, testing, validation and installation of affected
systems was completed without any complications. These systems are currently in
production within the organization and have been operating successfully.

As part of the effort to assure continued inter-operability with third-party
relationships, the Bank was an active participant in the Mortgage Bankers
Association Y2K readiness testing program. This program established specific
guidelines and standards for testing information exchange between financial
organizations. The Bank successfully completed all required testing and did
additional testing to assure readiness in this area.

Rapid and accurate data processing is essential to Company operations. If
testing reveals that any system critical to continued business operation should
fail, all internal and external resources available will be directed toward
correcting these systems. System delays, mistakes, or failures could have an
adverse impact on the Company. In addition, non-compliance by third parties
(including loan customers) and disruptions to the economy in general resulting
from Year 2000 issues could also have a negative impact.

As part of its Y2K readiness efforts, the Bank has initiated a customer
awareness program to educate and inform its customers of Y2K issues and progress
made in resolving these issues. The Bank has developed a Y2K business

14                                         PVF Capital Corp. 1999 Annual Report

<PAGE>   16

resumption contingency plan for all mission critical systems that augments its
existing disaster recovery plan.

The cost for the Bank to become Year 2000 ready is not anticipated to be
material to the Bank's net income for any year. The Board of Directors and Bank
staff are making every effort to ensure that the Bank will continue to deliver
financial services to its customers.

IMPACT OF INFLATION AND CHANGING PRICES

The consolidated financial statements and related data presented herein have
been prepared in accordance with GAAP, 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

In June 1997, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 130, Reporting Comprehensive
Income. SFAS No. 130 requires public business enterprises to additionally report
items that affect comprehensive income but not net income. Examples of these
items relevant to the Company include unrealized gains and losses on securities
available for sale. The Company adopted SFAS No. 130 on July 1, 1998. However,
at this time, the Company does not have other comprehensive income to be
reported.

In June 1997, the FASB issued SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information. SFAS No. 131 requires public business
enterprises to report certain information about operating segments. Also
required is certain information about products and services, geographic areas in
which an enterprise operates, and any major customers. SFAS No. 131 is effective
for years beginning after December 15, 1997. The Company determined that the
adoption of SFAS No. 131 has no effect on its consolidated financial statements
as the Company's operations are managed and performance is evaluated on a
corporate-wide basis. Accordingly, all of the Company's operations are
considered by management to be aggregated in one reportable operating segment.

In June 1998, the FASB issued SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities. This statement establishes comprehensive
accounting and reporting requirements for derivative instruments and hedging
activities. This statement requires entities to recognize all derivatives as
either assets or liabilities, with the instruments measured at fair value. The
accounting for gains and losses resulting from changes in fair value of the
derivative instrument depends on the use of the derivative and the type of risk
being hedged. This statement is effective for all fiscal quarters of all fiscal
years beginning after June 15, 2000. Management is currently analyzing the
effect of the adoption of SFAS No. 133 on the Bank's consolidated financial
statements.

In October 1998, the FASB issued SFAS No. 134, Accounting for Mortgage-Backed
Securities Retained after Securitization of Mortgage Loans Held for Sale by a
Mortgage Banking Enterprise. This statement amends SFAS No. 65 to require that
after the securitization of mortgage loans held for sale, an entity engaged in
mortgage banking activities must classify the resulting mortgage-backed
securities or other retained interests based on its ability and intent to sell
or hold those investments. After the securitization of a mortgage loan held for
sale, any retained mortgage-backed securities shall be classified in accordance
with the provisions of SFAS No. 115. However, a mortgage banking enterprise must
classify as trading any retained mortgage-backed securities that it commits to
sell before or after the securitization process. This statement is effective for
the first fiscal quarter beginning after December 15, 1998. The Bank has not
historically securitized mortgage loans and retained the mortgage-backed
security. Therefore, the adoption did not have any impact on the Company's
consolidated financial statements.

PVF Capital Corp. 1999 Annual Report                                      15

<PAGE>   17
                          INDEPENDENT AUDITORS' REPORT



The Board of Directors
PVF Capital Corp. and Subsidiaries:


We have audited the accompanying consolidated statements of financial condition
of PVF Capital Corp. and subsidiaries (Company) as of June 30, 1999 and 1998,
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, 1999.
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 generally accepted auditing
standards. 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, 1999 and 1998, and the results of their
operations and their cash flows for each of the years in the three-year period
ended June 30, 1999, in conformity with generally accepted accounting
principles.


                                  /s/ KPMG LLP



Cleveland, Ohio
July 15, 1999


<PAGE>   18
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                 Consolidated Statements of Financial Condition

                             June 30, 1999 and 1998


<TABLE>
<CAPTION>
                                             ASSETS                                  1999                1998
                                                                               ------------------  -----------------

<S>                                                                          <C>                          <C>
Cash and amounts due from depository institutions                            $         4,140,460          2,447,631
Interest bearing deposits                                                                573,872            394,331
Federal funds sold                                                                     5,375,000         20,375,000
                                                                               ------------------  -----------------

             Cash and cash equivalents                                                10,089,332         23,216,962

Securities held to maturity (fair values of $24,895,033 and
   $27,767,525, respectively)                                                         25,334,041         27,800,000
Mortgage-backed securities held to maturity (fair values
   of $1,728,656 and $2,965,247, respectively)                                         1,732,726          2,950,856
Loans receivable held for long-term investment, net of allowance
   for loan losses of $2,629,743 and $2,686,521, respectively                        395,550,737        368,998,087
Loans receivable held for sale, net                                                    1,772,176          1,644,735
Office properties and equipment, net                                                   2,003,211          2,313,546
Real estate held for investment                                                        3,796,852            938,071
Real estate owned                                                                        168,500            699,236
Investment required by law -
      stock in the Federal Home Loan Bank of Cincinnati                                3,759,452          3,507,564
Prepaid expenses and other assets                                                      4,994,438          1,210,099
                                                                               ------------------  -----------------

             Total assets                                                    $       449,201,465        433,279,156
                                                                               ==================  =================

                              LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
   Deposits                                                                  $       331,241,736        344,228,729
   Advances from the Federal Home Loan Bank of Cincinnati                             66,040,736         46,324,456
   Notes payable                                                                              --          1,060,000
   Advances from borrowers for taxes and insurance                                     5,463,660          4,931,114
   Accrued expenses and other liabilities                                              7,599,525          5,526,147
                                                                               ------------------  -----------------

             Total liabilities                                                       410,345,657        402,070,446
                                                                               ------------------  -----------------

Commitments

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;
      4,389,888 and 3,990,808 shares issued, respectively                                 43,899             39,908
   Additional paid-in capital                                                         20,250,236         14,517,452
   Retained earnings (substantially restricted)                                       18,632,923         16,651,350
   Treasury stock, at cost 5,000 shares                                                  (71,250)                --
                                                                               ------------------  -----------------

             Total stockholders' equity                                               38,855,808         31,208,710
                                                                               ------------------  -----------------

             Total liabilities and stockholders' equity                      $       449,201,465        433,279,156
                                                                               ==================  =================
</TABLE>


See accompanying notes to consolidated financial statements.

                                       17
<PAGE>   19

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                      Consolidated Statements of Operations

                    Years ended June 30, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                                                                               1999               1998                1997
                                                                         -----------------  ------------------  ------------------

<S>                                                                   <C>                          <C>                 <C>
Interest income:
   Loans                                                              $        33,145,769          32,499,826          29,418,869
   Mortgage-backed securities                                                     146,865             155,446             285,246
   Cash and securities                                                          2,054,310           1,709,951           1,258,732
                                                                         -----------------  ------------------  ------------------

             Total interest income                                             35,346,944          34,365,223          30,962,847

Interest expense:
   Deposits                                                                    16,960,961          17,062,418          13,957,543
   Short-term borrowings                                                        2,901,621             978,144           1,182,874
   Long-term borrowings                                                                --           1,517,766           1,420,346
                                                                         -----------------  ------------------  ------------------

             Total interest expense                                            19,862,582          19,558,328          16,560,763
                                                                         -----------------  ------------------  ------------------

             Net interest income                                               15,484,362          14,806,895          14,402,084

   Provision for loan losses                                                           --             246,000             187,000
                                                                         -----------------  ------------------  ------------------

             Net interest income after provision for loan losses               15,484,362          14,560,895          14,215,084
                                                                         -----------------  ------------------  ------------------

   Noninterest income:
      Service and other fees                                                      492,316             621,277             519,512
      Mortgage banking activities, net                                          1,023,360             869,535             663,002
      Gain on sale of real estate                                               3,800,696                  --                  --
      Other, net                                                                  119,090             105,905             153,253
                                                                         -----------------  ------------------  ------------------

             Total noninterest income                                           5,435,462           1,596,717           1,335,767

   Noninterest expense:
      Compensation and benefits                                                 4,848,030           4,512,664           4,423,470
      Office, occupancy, and equipment                                          1,783,631           1,631,802           1,603,583
      Insurance                                                                   272,607             255,365             445,804
      Special SAIF assessment                                                          --                  --           1,707,867
      Professional and legal                                                      921,664             264,555             208,164
      Other                                                                     1,823,225           2,185,965           1,611,475
                                                                         -----------------  ------------------  ------------------

             Total noninterest expense                                          9,649,157           8,850,351          10,000,363
                                                                         -----------------  ------------------  ------------------

             Income before federal income taxes                                11,270,667           7,307,261           5,550,488

   Federal income taxes:
      Current                                                                   2,437,926           2,332,125           1,975,742
      Deferred                                                                  1,113,454              47,230             (72,093)
                                                                         -----------------  ------------------  ------------------

                                                                                3,551,380           2,379,355           1,903,649
                                                                         -----------------  ------------------  ------------------

             Net income                                               $         7,719,287           4,927,906           3,646,839
                                                                         =================  ==================  ==================

   Basic earnings per share                                           $               1.76                1.14                0.86
                                                                         =================  ==================  ==================

   Diluted earnings per share                                         $               1.70                1.09                0.81
                                                                         =================  ==================  ==================
</TABLE>


See accompanying notes to consolidated financial statements.

                                       18
<PAGE>   20


                       PVF CAPITAL CORP. AND SUBSIDIARIES

                 Consolidated Statements of Stockholders' Equity

                    Years ended June 30, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                                                                                       ACCUMULATED
                                                        ADDITIONAL                        OTHER
                                             COMMON       PAID-IN         RETAINED     COMPREHEN-       TREASURY
                                              STOCK       CAPITAL         EARNINGS     SIVE INCOME        STOCK          TOTAL
                                           =========== ==============  =============== ============== ============== ===============

<S>                                       <C>          <C>             <C>             <C>            <C>            <C>
Balance at June 30, 1996                  $     23,235     9,995,916       12,608,775       (154,268)            --      22,473,658

   Comprehensive income:
      Net income                                    --            --        3,646,839             --             --       3,646,839
      Net change in unrealized securities
        losses, net of taxes of $79,471             --            --               --        154,268             --         154,268
                                                                                                                     ---------------

             Comprehensive income                                                                                         3,801,107

   Stock dividend issued, 232,224 shares         2,321     4,526,359       (4,528,680)            --             --              --

   Cash paid in lieu of fractional shares           --            --           (1,349)            --             --          (1,349)
                                           ----------- --------------  --------------- -------------- -------------- ---------------

Balance at June 30, 1997                        25,556    14,522,275       11,725,585             --             --      26,273,416

   Net income                                       --            --        4,927,906             --             --       4,927,906

   Stock options exercised,
      127,278 shares                             1,049         8,480               --             --             --           9,529

   Cash paid in lieu of fractional shares           --            --           (2,141)            --             --          (2,141)

   Three-for-two stock split effected
      in the form of a dividend                 13,303       (13,303)              --             --             --              --
                                           ----------- --------------  --------------- -------------- -------------- ---------------

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, 399,080 shares         3,991     5,732,784       (5,736,775)            --             --              --

   Purchase of 5,000 shares of
      Treasury stock                                --            --               --             --        (71,250)        (71,250)
                                           ----------- --------------  --------------- -------------- -------------- ---------------

Balance at June 30, 1999                  $     43,899    20,250,236       18,632,923             --        (71,250)     38,855,808
                                           =========== ==============  =============== ============== ============== ===============
</TABLE>


See accompanying notes to consolidated financial statements.

                                       19
<PAGE>   21

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                      Consolidated Statements of Cash Flows

                    Years ended June 30, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                                                                         1999                1998               1997
                                                                   -----------------   -----------------  -----------------

<S>                                                              <C>                   <C>                <C>
Operating activities:
   Net income                                                    $        7,719,287           4,927,906          3,646,839
   Adjustments required to reconcile net income to net cash
      provided by (used in) operating activities:
        Accretion of discount on securities                                  (1,458)             (4,650)            (1,250)
        Depreciation and amortization                                       605,453             512,290            468,296
        Provision for loan losses                                                --             246,000            187,000
        Accretion of unearned discount and deferred loan
          origination fees, net                                          (1,263,266)         (1,464,630)        (1,660,399)
        Deferred income tax provision                                    (1,113,454)            (47,230)            72,093
        Proceeds from loans held for sale                               107,977,623          81,294,421         46,020,308
        Originations of loans held for sale                            (108,105,064)        (82,229,552)       (53,500,828)
        Mortgage banking operations, excluding mortgage loan
          servicing fees and amortization of mortgage servicing
          rights                                                           (601,056)           (483,915)          (250,757)
        Net change in other assets and other liabilities                   (649,409)          1,342,926            (62,112)
                                                                   -----------------   -----------------  -----------------

             Net cash provided by (used in) operating activities          4,568,656           4,093,566         (5,080,810)
                                                                   -----------------   -----------------  -----------------

Investing activities:
   Loans originated                                                    (157,546,496)       (143,825,436)      (136,862,188)
   Principal repayments on loans                                        132,682,883         116,232,185         87,823,393
   Proceeds from sales of mortgage-backed securities
      available for sale                                                         --                  --         12,598,136
   Principal repayments on mortgage-backed securities
      available for sale                                                         --                  --            241,974
   Principal repayments on mortgage-backed securities
      held to maturity                                                    1,223,417             589,488            123,716
   Purchase of mortgage-backed securities held to maturity                       --          (3,017,075)                --
   Purchase of securities held to maturity                              (25,389,250)        (27,800,000)                --
   Maturities of securities held to maturity                             27,856,667          14,000,000            100,000
   Federal Home Loan Bank (FHLB) stock purchased, net                      (251,888)           (745,250)          (882,314)
   (Additions) disposal to office properties and equipment                 (295,118)           (943,445)           220,880
   Disposals of real estate owned                                           752,636           1,025,818            508,837
   (Additions) disposal of real estate
      held for investment, net                                           (2,858,782)            (28,313)           (54,867)
                                                                   -----------------   -----------------  -----------------

             Net cash used in investing activities                      (23,825,931)        (44,512,028)       (36,182,433)
                                                                   -----------------   -----------------  -----------------
</TABLE>
                                                                     (Continued)


                                       20
<PAGE>   22


                       PVF CAPITAL CORP. AND SUBSIDIARIES

                      Consolidated Statements of Cash Flows

                    Years ended June 30, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                                                                              1999                1998               1997
                                                                        -----------------   -----------------  -----------------

<S>                                                                   <C>                   <C>                <C>
Financing activities:
   Payments on FHLB advances                                          $      (10,283,720)        (92,580,968)       (72,576,227)
   Proceeds from FHLB advances                                                30,000,000          91,500,000         92,500,000
   Repayment of notes payable                                                 (1,060,000)         (1,250,000)          (400,000)
   Net increase (decrease) in NOW and passbook savings                         7,719,664           5,693,428            (48,405)
   Proceeds from issuance of certificates of deposit                          46,744,489          85,884,130         58,655,161
   Payments on maturing certificates of deposit                              (67,451,145)        (35,618,504)       (41,382,167)
   Other                                                                         531,607             426,908            305,095
   Purchase of Treasury stock                                                    (71,250)                 --                 --
                                                                        -----------------   -----------------  -----------------

             Net cash provided by financing activities                         6,129,645          54,054,994         37,053,457

             Net increase (decrease) in cash and cash equivalents            (13,127,630)         13,636,532         (4,209,786)

Cash and cash equivalents at beginning of year                                23,216,962           9,580,430         13,790,216
                                                                        -----------------   -----------------  -----------------

Cash and cash equivalents at end of year                              $       10,089,332          23,216,962          9,580,430
                                                                        =================   =================  =================


Supplemental disclosures of cash flow information:
   Cash payments of interest expense                                  $       19,922,567          19,530,151         16,416,368
   Cash payments of income taxes                                               2,480,000           2,617,000          1,580,000
                                                                        =================   =================  =================

Supplemental schedule of noncash investing and financing activities:
      Loans exchanged for mortgage-backed securities                  $               --                  --          5,376,484
      Transfers from real estate owned                                          (700,736)           (989,299)          (481,567)
      Transfers to real estate owned                                             170,000           2,714,353            428,982
                                                                        =================   =================  =================
</TABLE>


See accompanying notes to consolidated financial statements.

                                       21


<PAGE>   23



                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


  (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
              generally accepted accounting principles 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.



                                                                     (Continued)
                                       22

<PAGE>   24
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


        (d)   MORTGAGE BANKING ACTIVITIES

              Mortgage loans held for sale are carried at the lower of cost or
              market value, determined on a net 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.

        (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.


                                       23
                                                                     (Continued)

<PAGE>   25
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


        (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 IN DEVELOPMENT

              Real estate in development 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 is 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 1999, 1998, and 1997 are adjusted to
              reflect the 10% stock dividend declared July, 1997; the
              three-for-two stock issuance declared July, 1998; and the 10%
              stock dividend declared August, 1999.

        (l)   RECLASSIFICATION

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

                                       24

                                                                     (Continued)
<PAGE>   26
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


  (2)   SECURITIES

        Securities held to maturity at June 30, 1999 and 1998, are summarized as
follows:

<TABLE>
<CAPTION>
                                                                                      1999
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                        AMORTIZED COST     UNREALIZED    UNREALIZED LOSS ESTIMATED FAIR
                                                                              GAIN                            VALUE
                                                        ---------------- --------------- --------------- ----------------
<S>                                                   <C>                <C>             <C>              <C>
        United States Government and agency
          securities                                    $   24,957,708               --        (439,008)     24,518,700

        Municipal bond                                         376,333               --              --         376,333
                                                        --------------   --------------  --------------   -------------

                  Total                                 $   25,334,041               --        (439,008)     24,895,033
                                                        ==============   ==============  ==============   =============

        Due after one year through five years           $   25,334,041               --        (439,008)     24,895,033
                                                        ==============   ==============  ==============   =============
</TABLE>

<TABLE>
<CAPTION>

                                                                                      1998
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                        AMORTIZED COST     UNREALIZED    UNREALIZED LOSS   ESTIMATED FAIR
                                                                              GAIN                             VALUE
                                                        ---------------- --------------- --------------------------------
<S>                                                   <C>                <C>             <C>              <C>
        United States Government and agency
          securities                                    $   27,800,000            4,565         (37,040)     27,767,525
                                                        ==============   ==============  ==============   =============

        Due after one year through five years                9,800,000            4,565              --       9,804,565
        Due after five years                                18,000,000               --         (37,040)     17,962,960
                                                        --------------   --------------  --------------   -------------

                                                        $   27,800,000            4,565         (37,040)     27,767,525
                                                        ==============   ==============  ==============   =============
</TABLE>

        There were no sales of securities for the year ended June 30, 1999
        or 1998.



                                       25
                                                                     (Continued)
<PAGE>   27
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

  (3)   MORTGAGE-BACKED SECURITIES

        Mortgage-backed securities held to maturity at June 30, 1999 and 1998,
        are summarized as follows:
<TABLE>
<CAPTION>

                                                                                      1999
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                        AMORTIZED COST     UNREALIZED    UNREALIZED LOSS   ESTIMATED FAIR
                                                                              GAIN                             VALUE
                                                        --------------   --------------  --------------   -------------
<S>                                                    <C>              <C>              <C>             <C>
        FHLMC mortgage-backed securities                $    1,721,883               --          (4,070)      1,717,813
        Accrued interest receivable                             10,883               --              --          10,843
                                                        --------------   --------------  --------------   -------------

                                                        $    1,732,726               --          (4,070)      1,728,656
                                                        ==============   ==============  ==============   =============

        Due after one year through five years                1,434,965               --          (4,070)      1,430,895
        Due after five years                                   297,761               --              --         297,761
                                                        --------------   --------------  --------------   -------------

                                                        $    1,732,726               --          (4,070)      1,728,656
                                                        ==============   ==============  ==============   =============
</TABLE>

<TABLE>
<CAPTION>
                                                                                      1998
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                        AMORTIZED COST     UNREALIZED    UNREALIZED LOSS  ESTIMATED FAIR
                                                                              GAIN                            VALUE
                                                        --------------   --------------  --------------   -------------
<S>                                                  <C>                <C>              <C>              <C>
        FHLMC mortgage-backed securities                $    2,932,491           14,391              --       2,946,882
        Accrued interest receivable                             18,365               --              --          18,365
                                                        --------------   --------------  --------------   -------------

                                                        $    2,950,856           14,391              --       2,965,247
                                                        ==============   ==============  ==============   =============

        Due after one year through five years           $    2,950,856           14,391              --       2,965,247
                                                        ==============   ==============  ==============   =============
</TABLE>

        There were no sales of mortgage-backed securities for the years ended
        June 30, 1999 or 1998.


                                       26
                                                                     (Continued)
<PAGE>   28
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


  (4)   LOANS RECEIVABLE HELD FOR LONG-TERM INVESTMENT

        Loans receivable held for long-term investment at June 30, 1999 and
        1998, consist of the following:
<TABLE>
<CAPTION>

                                                                                           1999                  1998
                                                                                     -----------------       -----------
<S>                                                                                <C>                     <C>
        Real estate mortgages:
            One-to-four family residential                                           $     139,505,849       140,562,371
            Home equity line of credit                                                      22,956,231        18,761,725
            Multifamily residential                                                         34,074,620        31,493,450
            Commercial                                                                     105,426,600        94,587,534
            Commercial equity line of credit                                                 4,712,750         1,878,826
            Land                                                                            42,003,325        30,462,374
            Construction                                                                   101,031,742        96,062,788
                                                                                     -----------------       -----------

                                   Total real estate mortgages                             449,711,117       413,809,068

        Consumer                                                                             3,085,680         2,008,437
                                                                                     -----------------       -----------

                                                                                           452,796,797       415,817,505

        Accrued interest receivable                                                          2,191,226         2,198,910
        Deferred loan origination fees                                                      (1,920,738)       (1,673,697)
        Unearned discount                                                                      (22,752)          (35,887)
        Undisbursed portion of loan proceeds                                               (54,864,053)      (44,622,223)
        Allowance for loan losses                                                           (2,629,743)       (2,686,521)
                                                                                     -----------------       -----------

                                                                                     $     395,550,737       368,998,087
                                                                                     =================       ===========

</TABLE>
        A summary of the changes in the allowance for loan losses for the years
        ended June 30, 1999, 1998, and 1997, is as follows (write-offs include
        transfers to real estate owned):
<TABLE>
<CAPTION>
                                             1999           1998           1997
                                         -----------    -----------    -----------
<S>                                    <C>              <C>            <C>
       Beginning balance                 $ 2,686,521      2,674,537      2,564,720
       Provision charged to operations          --          246,000        187,000
       Write-offs                            (62,097)      (236,593)      (197,875)
       Recoveries                              5,319          2,577        120,692
                                         -----------    -----------    -----------

       Ending balance                    $ 2,629,743      2,686,521      2,674,537
                                         ===========    ===========    ===========
</TABLE>

                                       27
                                                                     (Continued)
<PAGE>   29
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


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

<TABLE>
<CAPTION>
                                                                       1999         1998
                                                                    ----------   ----------
<S>                                                               <C>           <C>
      Loans on nonaccrual status:
          Real estate mortgages:
             One-to-four family residential                         $1,242,000    1,236,000
             Commercial                                                551,000      551,000
             Multi-family residential                                  230,000      263,000
             Construction and land                                   1,616,000    1,212,000
          Consumer                                                        --         15,000
                                                                    ----------   ----------

                                 Total loans on nonaccrual status    3,639,000    3,277,000
                                                                    ----------   ----------

      Past due loans on accrual status -
           real estate mortgages -
             construction and land                                     248,000      163,000
                                                                    ----------   ----------

                                 Total past due loans               $3,887,000    3,440,000
                                                                    ==========   ==========
</TABLE>


        During the years ended June 30, 1999 and 1998, gross interest income of
        $349,539 and $204,736, 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, 1999 and 1998, the recorded investment in loans which have
        been identified as being impaired totaled $3,639,000 and $3,277,000,
        respectively. Included in the impaired amount at June 30, 1999 and 1998,
        is $443,062 and $453,113, respectively, related to loans with a
        corresponding valuation allowance of $202,334 and $196,386,
        respectively. The Company recognized no interest on impaired loans in
        1999, 1998, and 1997 (during the portion of the respective years that
        they were impaired).

        Average impaired loans for the years ended June 30,  1999,  1998, and
        1997 amounted to $3,522,000, $3,026,000, and $2,482,000, respectively.

  (5)   LOANS RECEIVABLE HELD FOR SALE

        Loans receivable held for sale at June 30, 1999 and 1998, consist of the
        following:
<TABLE>
<CAPTION>

                                                                                      1999
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                        AMORTIZED COST     UNREALIZED    UNREALIZED LOSS   ESTIMATED FAIR
                                                                              GAIN                            VALUE
                                                        --------------   --------------  --------------   -------------
<S>                                                 <C>                 <C>              <C>              <C>
        Real estate mortgages                           $    1,802,323               --         (27,717)      1,774,606
        Deferred loan origination fees                         (30,147)              --              --         (30,147)
                                                        --------------   --------------  --------------   -------------

                                                        $    1,772,176               --         (27,717)      1,744,459
                                                        ==============   ==============  ==============   =============
</TABLE>

                                       28
                                                                     (Continued)
<PAGE>   30
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                                                                                      1998
                                                        -----------------------------------------------------------------
                                                                             GROSS            GROSS
                                                        AMORTIZED COST     UNREALIZED    UNREALIZED LOSS  ESTIMATED FAIR
                                                                              GAIN                            VALUE
                                                        --------------   --------------  --------------   -------------
<S>                                                 <C>                 <C>              <C>              <C>
        Real estate mortgages                           $    1,660,719           30,065              --       1,690,784
        Deferred loan origination fees                         (15,984)              --              --         (15,984)
                                                        --------------   --------------  --------------   -------------

                                                        $    1,644,735           30,065              --       1,674,800
                                                        ==============   ==============  ==============   =============
</TABLE>

        Mortgage banking activities, net, for each of the years in the
        three-year period ended June 30, 1999, consist of the following:

<TABLE>
<CAPTION>
                                                               1999            1998           1997
                                                           -----------        -------        -------
<S>                                                       <C>                <C>            <C>
        Mortgage loan servicing fees                       $   702,645        617,080        580,328
        Amortization of mortgage servicing rights             (280,341)      (231,460)      (168,083)
        Gross realized:
           Gains on sales of loans                           1,506,985      1,209,893        975,826
           Losses on sales of loans                           (905,929)      (725,978)      (578,053)
           Gains on sales of mortgage-backed securities           --             --           16,673
           Losses on sales of mortgage-backed securities          --             --          (81,759)
        Market valuation provision for losses on loans
            receivable held for sale                              --             --         (176,514)
        Market valuation recoveries                               --             --           94,584
                                                           -----------        -------        -------

                                                           $ 1,023,360        869,535        663,002
                                                           ===========        =======        =======
</TABLE>

        A summary of the changes in the allowance for mortgage banking market
        value losses for the years ended June 30, 1999, 1998, and 1997 is as
        follows:

<TABLE>
<CAPTION>
                                                                      1999              1998               1997
                                                                --------------      -------------      ---------------
<S>                                                          <C>                   <C>                 <C>
Balance at beginning of year                                    $           --                 --               13,314
Market valuation provision for losses on loans
    receivable held for sale                                                --                 --              176,514
Market valuation loss on loans and mortgage-backed securities
    sold                                                                    --                 --              (95,244)
Market valuation recoveries                                                 --                 --              (94,584)


                                                                --------------      -------------      ---------------
Balance at end of year                                          $           --                 --                 --
                                                                ==============      =============      ===============
</TABLE>


        At June 30, 1999, 1998, and 1997, the Bank was servicing whole and
        participation mortgage loans for others aggregating approximately
        $277,288,302, $233,893,979, and $195,250,000, respectively. The Bank had
        $3,458,030 and $3,304,702 at June 30, 1999 and 1998, respectively, of
        funds collected on mortgage loans serviced for others due to investors,
        which is included in accrued expenses and other liabilities.


                                       29
                                                                     (Continued)
<PAGE>   31
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997




        Originated mortgage servicing rights capitalized and amortized during
        the years ended June 30, 1999, 1998 and 1997 were as follows:
<TABLE>
<CAPTION>
                                   1999           1998           1997
                               -----------    -----------    -----------
<S>                           <C>                <C>            <C>
        Beginning balance      $   606,200        451,000        241,000
        Originated                 473,114        386,600        378,000
        Amortized                 (280,341)      (231,400)      (168,000)
                               -----------    -----------    -----------

        Ending balance         $   798,973        606,200        451,000
                               ===========    ===========    ===========

        Estimated fair value   $ 2,334,665      1,639,261        865,481
                               ===========    ===========    ===========
</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, 1999 and 1998 are summarized as follows:

<TABLE>
<CAPTION>
                                                             1999           1998
                                                         -----------    -----------
<S>                                                    <C>                <C>
        Land and land improvements                       $   207,092        207,092
        Building and building improvements                 1,062,525      1,062,525
        Leasehold improvements                             1,849,929      1,847,269
        Furniture and equipment                            3,788,158      3,512,837
                                                         -----------    -----------

                                                           6,907,704      6,629,723
        Less accumulated depreciation and amortization    (4,904,493)    (4,316,177)
                                                         -----------    -----------

                                                         $ 2,003,211      2,313,546
                                                         ===========    ===========
</TABLE>


                                       30
                                                                     (Continued)
<PAGE>   32
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


  (7)   DEPOSITS

        Deposit balances at June 30, 1999 and 1998 are summarized by interest
        rate as follows:
<TABLE>
<CAPTION>
                                                                             1999                       1998
                                                                   -------------------------- --------------------------
                                                                       AMOUNT          %          AMOUNT          %
                                                                   ---------------- --------- ---------------- ---------

<S>                                       <C>                   <C>                <C>       <C>               <C>
        NOW and money market accounts
                                           Noninterest bearing     $    7,182,506       2.2%  $    6,261,947       1.8%
                                               2.00 - 5.00%            30,146,167       9.1       24,756,893       7.2
                                                                   ---------------- --------- ---------------  ---------

                                                                       37,328,673      11.3       31,018,840       9.0

        Passbook savings                       3.00 - 5.00%            33,254,163      10.0       31,844,333       9.3

        Certificates of deposit                2.50 - 2.99%               750,000        .2          385,101        .1
                                               4.00 - 4.99             86,009,310      26.0        9,568,477       2.8
                                               5.00 - 5.99            115,086,171      34.7      121,695,954      35.4
                                               6.00 - 6.99             48,828,427      14.7      137,125,129      39.8
                                               7.00 - 7.99              9,784,800       3.0       12,406,221       3.5
                                               8.00 - 8.99                200,192        .1          184,674        .1
                                                                   ---------------- --------- ---------------- ---------

                                                                      260,658,900      78.7      281,365,556      81.7
                                                                   ---------------- --------- ---------------- ---------

                                                                 $    331,241,736     100.0%$    344,228,729     100.0%
                                                                   ================ ========= ================ =========

        Weighted average rate on deposits                                             4.80%                      5.32%
                                                                                    =========                  =========
</TABLE>
<TABLE>
<CAPTION>

                                                                             1999                       1998
                                                                   -------------------------- --------------------------
                                                                       AMOUNT          %          AMOUNT          %
                                                                   ---------------- --------- ---------------- ---------
<S>                                                              <C>               <C>       <C>                <C>
        Remaining term to maturity of certificates of deposit:
             12 months or less                                   $    216,355,447      83.0%  $  211,559,590      75.2%
             13 to 24 months                                           32,535,028      12.5       52,392,548      18.6
             25 to 36 months                                            6,253,664       2.4       13,613,228       4.8
             Over 36 months                                             5,514,761       2.1        3,800,190       1.4
                                                                   ---------------- --------- ---------------- ---------

                                                                 $    260,658,900     100.0%$    281,365,556     100.0%
                                                                   ================ ========= ================ =========

        Weighted average rate on certificates of deposit                              5.48%                      5.95%
                                                                                    =========                  =========
</TABLE>

        Time deposits in amounts of $100,000 or more totaled  $65,113,000  and
        $64,157,000 at June 30,  1999 and 1998, respectively.



                                       31
                                                                     (Continued)
<PAGE>   33
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


        Interest expense on deposits is summarized as follows:

<TABLE>
<CAPTION>
                                                                              1999            1998            1997
                                                                         --------------- --------------  ----------------
<S>                                                                  <C>                      <C>             <C>
        NOW accounts                                                   $        730,099         599,436         529,889
        Passbook accounts                                                       832,070         870,661         867,687
        Certificates of deposit                                              15,398,792      15,592,321      12,559,967
                                                                         --------------- --------------   ---------------

                                                                       $     16,960,961      17,062,418      13,957,543
                                                                         =============== ==============   ===============
</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, 1999 and 1998, were as follows:

<TABLE>
<CAPTION>
        MATURITY                                       INTEREST RATE                          1999             1998
        --------                                       -------------                   ----------------   ---------------
<S>                                                       <C>                       <C>                    <C>
        March 1999                                           6.50%                     $             --       10,000,000
        July 1999                                            6.00                            25,000,000               --
        March 2001                                           5.93                             5,000,000        5,000,000
        February 2003                                        6.00                               500,000          500,000
        February 2006                                        6.05                               540,736          824,456
        February 2008                                        5.37                            10,000,000       10,000,000
        March 2008                                           5.15                             5,000,000        5,000,000
        March 2008                                           5.64                            10,000,000       10,000,000
        March 2008                                           5.13                             5,000,000        5,000,000
        July 2008                                            5.15                             5,000,000               --
                                                                                         ---------------- ---------------

                                                                                       $     66,040,736       46,324,456
                                                                                         ================ ===============

        Weighted average interest rate                                                          5.65%            5.71%
                                                                                         ================ ===============
</TABLE>

        The Bank maintains two lines of credit, totaling $60,000,000, with the
        Federal Home Loan Bank of Cincinnati (FHLB). The $40,000,000 repurchase
        line matures in March 2000. The Bank has chosen to take daily advances
        from this line, with the interest rate set daily. The $20,000,000 cash
        management line matures in October 1999. Serving as collateral for such
        advances, the Bank has pledged mortgage loans with unpaid principal
        balances aggregating approximately $99,061,104 and $69,486,683 at June
        30, 1999 and 1998, respectively. In addition, stock in the FHLB is
        pledged for such advances.

        The Bank has the capacity to borrow up to 25% of its assets, upon
        approval of the FHLB. At June 30, 1999 and 1998, the Bank had the
        capacity to borrow an additional $27,000,000 and $47,000,000,
        respectively, in FHLB advances.


                                       32
                                                                     (Continued)
<PAGE>   34
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


  (9)   NOTES PAYABLE

        On August 16, 1996, 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 plus 1%
        without notice on the effective date of each change in the lender's
        prime rate. The balance at June 30, 1998 was $1,060,000. The note was
        paid in full in August of 1998.

(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>

                                                      1999                      1998                      1997
                                            ------------------------- ------------------------- -------------------------
                                                AMOUNT         %          AMOUNT         %          AMOUNT         %
                                            --------------- --------- --------------- --------- --------------- ---------

<S>                                      <C>                 <C>    <C>                <C>    <C>                <C>
        Computed expected tax             $      3,944,733    35.0%  $     2,557,541    35.0%  $     1,942,671    35.0%
        Decrease in tax resulting from:
           Benefit of graduated rates             (112,706)   (1.0)          (73,073)   (1.0)          (55,505)   (1.0)
           Tax credits                            (219,332)   (2.0)         (287,788)   (3.9)               --      --
           Other, net                              (61,315)   (0.5)          182,675     2.5            16,483     0.3
                                            --------------- --------- --------------- --------- --------------- ---------

                                          $      3,551,380    31.5%  $     2,379,355    32.6%  $     1,903,649    34.3%
                                            =============== ========= =============== ========= =============== =========
</TABLE>

                                       33
                                                                     (Continued)
<PAGE>   35
                       PVF CAPITAL CORP. AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                         June 30, 1999, 1998, and 1997

        The net tax effects of temporary differences that give rise to
        significant portions of the deferred tax assets and liabilities at June
        30, 1999 and 1998 are:
<TABLE>
<CAPTION>
                                                                                            1999             1998
                                                                                      ----------------- ----------------
<S>                                                                               <C>                   <C>
        Deferred tax assets:
           Loan loss and other reserves                                             $         875,271           883,039
           Capital loss carryforward                                                               --           102,374
           Basis differences - fixed assets                                                        --            94,836
           Other                                                                              282,819            67,871
                                                                                      ----------------- ----------------

                                   Total gross deferred tax assets                          1,158,090         1,148,120

        Less valuation allowance                                                                   --          (102,374)
                                                                                      ----------------- ----------------

                                   Net deferred tax assets                                  1,158,090         1,045,746
                                                                                      ----------------- ----------------

        Deferred tax liabilities:
           Deferred loan fees                                                                 257,290           262,929
           FHLB stock dividend                                                                582,845           517,587
           Unrealized gains on loan sales, net                                                 95,871                --
           Originated mortgage servicing asset                                                271,637           206,094
           Basis differences - fixed assets                                                   968,345                --
           Other                                                                              180,570           144,150
                                                                                      ----------------- ----------------

                                   Total gross deferred tax liabilities                     2,356,558         1,130,760
                                                                                      ----------------- ----------------

                                   Net deferred tax liability                       $      (1,198,468)          (85,014)
                                                                                      ================= ================
</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, 1999 or 1998, other than as noted above
        for the capital loss carryforward.

        Retained earnings at June 30, 1999 includes 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 must
        switch to the specific charge-off method of section 166, while small
        thrifts, such as the Bank, must switch to the reserve method of section
        585 (the method used by small commercial banks). 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. There is an

                                       34
                                                                     (Continued)
<PAGE>   36
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

        exception to the general recapture provision for small thrifts. A small
        thrift is required to recapture the portion of its reserves that
        exceeds the greater of (1) the experience method reserve computed as if
        the thrift had always been a small bank, or (2) the lesser of the
        qualifying and nonqualifying base year reserves or the contracted base
        year reserves. The Bank has no such excess reserves to recapture.

(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, 1999:

        YEAR ENDING JUNE 30,
        --------------------
        2000                                       $       322,889
        2001                                               283,848
        2002                                               283,848
        2003                                               213,966
        Thereafter                                         171,318
                                                   ---------------

        Total minimum lease payments               $     1,275,869
                                                   ===============

        During the years ended June 30, 1999, 1998, and 1997, rental expense was
        $460,313, $435,097, and $374,420, 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.



                                       35
                                                                     (Continued)
<PAGE>   37
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


        At June 30, 1999 and 1998, the Bank had the following commitments:
<TABLE>
<CAPTION>

                                                                                            1999             1998
                                                                                      ----------------- ----------------

<S>                                                                               <C>                       <C>
        Commitments to sell mortgage loans in the secondary market                  $         540,000         3,407,600
        Commitments to fund variable mortgage loans                                        43,472,000        21,871,601
        Commitments to fund fixed mortgage loans                                            8,669,000         5,736,100
</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 require 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, 1999, 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, 1999, the Bank exceeded all of
        the aforementioned regulatory capital requirements.


                                       36
                                                                     (Continued)
<PAGE>   38

                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


        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, 1999 and 1998, the Bank was in compliance with regulatory
        capital requirements as set forth below (dollars in thousands):
<TABLE>
<CAPTION>

                                                                              CORE/          TIER-1           TOTAL
                                                          EQUITY CAPITAL    LEVERAGE       RISK-BASED      RISK-BASED
                                                                             CAPITAL         CAPITAL         CAPITAL
                                                          --------------- --------------  --------------  --------------
<S>                                                    <C>                <C>             <C>            <C>
        June 30, 1999:
           GAAP capital                                 $      35,950          35,950          35,950          35,950
           General loan valuation allowances                                       --              --           2,574
                                                                          --------------  --------------  --------------

                                                                               35,950          35,950          38,524
                 Regulatory capital

           Total assets                                       450,039
                                                          ---------------

           Adjusted total assets                                              450,039
                                                                          --------------

           Risk-weighted assets                                                               344,753         344,753
                                                                                          --------------  --------------

           Capital ratio                                       7.99%           7.99%          10.43%          11.17%

           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>

                                       37
                                                                     (Continued)
<PAGE>   39
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997
<TABLE>
<CAPTION>
                                                                              CORE/          TIER-1           TOTAL
                                                          EQUITY CAPITAL    LEVERAGE       RISK-BASED      RISK-BASED
                                                                             CAPITAL         CAPITAL         CAPITAL
                                                          --------------- --------------  --------------  --------------
<S>                                                    <C>                <C>            <C>              <C>
        June 30, 1998:
           GAAP capital                                 $      31,727          31,727          31,727          31,727
           General loan valuation allowances                                       --              --           2,597
                                                                          --------------  --------------  --------------

                 Regulatory capital                                            31,727          31,727          34,324

           Total assets                                       440,065
                                                          ---------------

           Adjusted total assets                                              440,065
                                                                          --------------

           Risk-weighted assets                                                               313,915         313,915
                                                                                          --------------  --------------

           Capital ratio                                       7.21%           7.21%          10.11%          10.93%

           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>



                                       38
                                                                     (Continued)
<PAGE>   40
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


(14)    STOCK OPTIONS

        The Bank offered stock options to the directors and officers of the bank
        in fiscal years 1993, 1997, 1998 and 1999. Under the 1992 plan, 381,830
        options were originally granted, which are exercisable for a ten-year
        period and can be exercised at any time. In 1996, 32,100 options were
        originally granted, in 1997 32,550 options were originally granted, and
        in 1998, 21,700 options were originally granted, which are exercisable
        for a ten-year period, with 20% of the options vesting each year.
        Options were granted at fair market value and, accordingly, no charges
        were reflected in the 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>
                                                1999                        1998                         1997
                                     -------------------------------------------------------- ---------------------------
                                                      AVERAGE                      AVERAGE                     AVERAGE
                                                      OPTION                       OPTION                      OPTION
                                         SHARES        PRICE           SHARES       PRICE         SHARES        PRICE
                                     -------------------------------------------------------- ---------------------------
<S>                                 <C>           <C>              <C>         <C>             <C>         <C>
        Outstanding beginning of
           year                           262,131  $    4.25          439,057  $    2.58           400,216 $    2.03
        Exercised                              --         --         (210,553)      2.05                --        --
        Expired                                --         --           (2,178)      8.26                --        --
        Granted                            23,870      10.56           35,805      11.96            38,841      8.26
                                     ------------  ---------        ---------- ---------           ------- ----------

        Outstanding end of year           286,001  $    4.78          262,131  $    4.25           439,057 $    2.58
                                     ============  =========        =========  =========           ======= ==========

        Exercisable end of year           230,757  $    4.78          211,489  $    4.25           407,985 $    2.58
                                     ============  =========        =========  =========           ======= =========
</TABLE>

        As of June 30, 1999, options outstanding have exercise prices between
        $2.03 and $13.16 and a weighted average remaining contractual life of
        4.6 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>

                                                                              1999            1998            1997
                                                                         --------------- --------------------------------
<S>                                                                   <C>                    <C>             <C>
        Net income                                                     $      7,719,287       4,927,906       3,646,839
        Less:  Compensation expense, net of tax                                  48,427          34,589          58,516
                                                                         --------------- ----------------- --------------

                          Pro forma earnings                           $      7,670,860       4,893,317       3,588,323
                                                                         =============== ================= ==============

        Basic earnings per share                                       $           1.76            1.14             .86
                                                                         =============== ================= ==============

        Pro forma basic earnings per share                             $           1.75            1.13             .85
                                                                         =============== ================= ==============

        Diluted earning per share                                      $           1.70            1.09             .81
                                                                         =============== ================= ==============

        Pro forma diluted earnings per share                           $           1.69            1.09             .80
                                                                         =============== ================= ==============
</TABLE>
        Compensation expense reflected in the pro forma disclosures is not
        indicative of future amounts when the SFAS No. 123 prescribed method
        will apply to all outstanding nonvested awards.

                                       39
                                                                     (Continued)
<PAGE>   41
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

        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 1999, 1998, and 1997; expected dividend
        yield of -0-, and expected option lives of 7 years; expected volatility
        of 30%, 5%, and 20%, and risk free interest rates of 4.33 %, 5.56%, and
        6%, 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>
                                                                                              1999
                                                                         ------------------------------------------------
                                                                                                            PER-SHARE
                                                                           NET INCOME        SHARES          AMOUNT
                                                                         --------------- ---------------- ---------------
<S>                                                                  <C>                 <C>                 <C>
        Basic EPS
        Income available to common shareholders                        $      7,719,287       4,389,888           1.76

        Effect of stock options                                                      --         161,254            .06
                                                                         --------------- ----------------- --------------

        Diluted EPS
        Income available to common shareholders                        $      7,719,287       4,551,142           1.70
                                                                         =============== ================= ==============

                                                                                              1998
                                                                         ------------------------------------------------
                                                                                                            PER-SHARE
                                                                           NET INCOME        SHARES          AMOUNT
                                                                         --------------- ---------------- ---------------

        Basic EPS
        Income available to common shareholders                        $      4,927,906       4,332,217           1.14

        Effect of stock options                                                      --         174,706            .05
                                                                         --------------- ----------------- --------------

        Diluted EPS
        Income available to common shareholders                        $      4,927,906       4,506,923           1.09
                                                                         =============== ================= ==============
</TABLE>

                                       40
                                                                     (Continued)
<PAGE>   42
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                                                                                              1997
                                                                         ------------------------------------------------
                                                                                                              PER-SHARE
                                                                           NET INCOME        SHARES            AMOUNT
                                                                         --------------- ------------------  --------------
<S>                                                                   <C>                 <C>                 <C>
        Basic EPS
        Income available to common shareholders                        $      3,646,839       4,216,677              .86

        Effect of stock options                                                      --         299,883              .05
                                                                         --------------- ------------------  --------------

        Diluted EPS
        Income available to common shareholders                        $      3,646,839       4,516,560              .81
                                                                         =============== ==================  ==============
</TABLE>

(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, 1999                   JUNE 30, 1998
                                                         ------------------------------- --------------------------------
                                                            CARRYING     ESTIMATED FAIR  CARRYING AMOUNT    ESTIMATED
                                                             AMOUNT           VALUE                         FAIR VALUE
                                                         --------------- --------------- ---------------- ---------------
<S>                                                    <C>               <C>              <C>             <C>
        Assets:
           Cash and amounts due from depository
              institutions                             $      4,140,460       4,140,460       2,447,631        2,447,631
           Interest-bearing deposits                            573,872         573,872         394,331          394,331
           Federal funds sold                                 5,375,000       5,375,000      20,375,000       20,375,000
           Securities held to maturity                       25,334,041      24,895,033      27,800,000       27,767,525
           Mortgage-backed securities held to maturity
                                                              1,732,726       1,728,656       2,950,856        2,965,247
           Loans receivable held for:
               Long-term investment, net                    395,550,737     398,014,043     368,998,087      378,879,256
               Sale, net                                      1,772,176       1,744,459       1,644,735        1,674,800
           Stock in the Federal Home Loan Bank of
              Cincinnati                                      3,759,452       3,759,452       3,507,564        3,507,564

        Liabilities:
           Demand deposits and passbook savings        $     70,582,836      70,582,836      62,863,173       62,863,173
           Time deposits                                    260,658,900     258,939,726     281,365,556      282,062,000
           Advances from the Federal Home loan Bank of
              Cincinnati                                     66,040,736      63,240,609      46,324,456       45,434,000
           Notes payable                                             --              --       1,060,000        1,060,000
</TABLE>

                                       41
                                                                     (Continued)
<PAGE>   43
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


        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 approximate 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 fixed rate note
        payable is a reasonable estimate of fair value based on the current
        incremental borrowing rate for similar types of borrowing arrangements.
        For the variable rate note payable, the carrying amount is a reasonable
        estimate of fair value.

        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, 1999 and 1998.

                                       42
                                                                     (Continued)
<PAGE>   44
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997



(17)    SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

        The following is a summary of the unaudited consolidated quarterly
        results of operations for 1999 and 1998 (in thousands of dollars, except
        per share data): (1)
<TABLE>
<CAPTION>

                                                                    QUARTERS FOR THE YEAR ENDED JUNE 30, 1999
                                                         ---------------------------------- ------------------------------
                                                             FIRST           SECOND            THIRD           FOURTH
                                                         --------------- ------------------ -------------- ---------------
<S>                                                   <C>                <C>                <C>            <C>
        Interest income                                $          8,938           8,935            8,666            8,808
        Interest expense                                          5,165           5,079            4,878            4,740
                                                         --------------- ------------------ -------------- ---------------

                       Net interest income                        3,773           3,856            3,788            4,068

        Provision for losses on loans                                --              --               --               --
        Noninterest income                                          363             445            4,221              407
        Noninterest expense                                       2,241           2,198            2,713            2,498
                                                         --------------- ------------------ -------------- ---------------

                       Income before taxes                        1,895           2,103            5,296            1,977

        Federal income taxes                                        632             696            1,804              420
                                                         --------------- ------------------ -------------- ---------------

                       Net income                      $          1,263           1,407            3,492            1,557
                                                         =============== ================== ============== ===============

        Basic earnings per share (2)                   $           .29             .32              .79              .35
                                                         =============== ================== ============== ===============

        Diluted earnings per share (2)                 $           .27             .31              .76              .34
                                                         =============== ================== ============== ===============

</TABLE>

                                       43
                                                                     (Continued)
<PAGE>   45
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997


<TABLE>
<CAPTION>
                                                                    QUARTERS FOR THE YEAR ENDED JUNE 30, 1998
                                                         ----------------------------------------------------------------
                                                             FIRST           SECOND           THIRD           FOURTH
                                                         --------------- ---------------- ---------------- ---------------

<S>                                                   <C>                   <C>              <C>              <C>
        Interest income                                $          8,196           8,569            8,713            8,887
        Interest expense                                          4,683           4,782            4,861            5,232
                                                         --------------- ---------------- ---------------- ---------------

                       Net interest income                        3,513           3,787            3,852            3,655

        Provision for losses on loans                                45              50              106               45
        Noninterest income                                          425             367              461              344
        Noninterest expense                                       2,006           2,104            2,173            2,568
                                                         --------------- ---------------- ---------------- ---------------

                       Income before taxes                        1,887           2,000            2,034            1,386

        Federal income taxes                                        626             699              700              354
                                                         --------------- ---------------- ---------------- ---------------

                       Net income                      $          1,261           1,301            1,334            1,032
                                                         =============== ================ ================ ===============

        Basic earnings per share (2)                   $           0.30            0.30             0.30             0.24
                                                         =============== ================ ================ ===============

        Diluted earnings per share (2)                 $           0.28            0.29             0.29             0.23
                                                         =============== ================ ================ ===============
</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 three-for-two stock split, declared on July 16,
        1998 and distributed on August 17, 1998 and a 10% stock dividend,
        declared on July 27, 1999 and issued on September 7, 1999.


                                       44
                                                                     (Continued)
<PAGE>   46
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

(18)    PARENT COMPANY

        Condensed parent company only financial information as of and for the
        years ended June 30, 1999 and 1998 follows:
<TABLE>
<CAPTION>
                        CONDENSED STATEMENTS OF FINANCIAL CONDITION                         1999             1998
                        -------------------------------------------                   ----------------- ----------------

<S>                                                                               <C>                    <C>
        Cash and amounts due from depository institutions                           $          64,314            27,949
        Prepaid expenses and other assets                                                   1,888,123           621,904
        Investment in subsidiaries, at equity in underlying value of net assets            36,887,972        30,559,036
                                                                                      ----------------- ----------------

                 Total assets                                                       $      38,840,409        31,208,889
                                                                                      ================= ================

        Accrued expenses and other liabilities                                                (15,399)              179
                                                                                      ----------------- ----------------

        Stockholders' equity                                                               38,855,808        31,208,710
                                                                                      ----------------- ----------------

                 Total liabilities and stockholders' equity                         $      38,840,409        31,208,889
                                                                                      ================= ================


                      CONDENSED STATEMENTS OF OPERATIONS                      1999            1998            1997
                      ----------------------------------               --------------- ------------------ -------------

        Income -
           mortgage banking activities                                 $        310,930         421,344         493,440

        Expenses:
           Interest expense                                                          --           7,758          70,136
           General and administrative                                           249,630         266,287         255,804
                                                                         --------------- ----------------- --------------

                                                                                249,630         274,045         325,940
                                                                         --------------- ----------------- --------------

                 Income before federal income taxes and
                   equity in undistributed net income of
                   subsidiaries                                                  61,300         147,299         167,500

        Federal income taxes                                                     20,950          50,266          57,146
                                                                         --------------- ------------------ -------------

                 Income before equity in undistributed
                   net income of subsidiaries                                    40,350          97,033         110,354

        Equity in undistributed net income of subsidiaries                    7,678,937       4,830,873       3,536,485
                                                                         --------------- ------------------ -------------

                 Net income                                            $      7,719,287       4,927,906       3,646,839
                                                                         =============== ================== =============
</TABLE>

                                       45
                                                                     (Continued)
<PAGE>   47
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

<TABLE>
<CAPTION>
                      CONDENSED STATEMENTS OF CASH FLOWS                      1999            1998              1997
                      ----------------------------------                 --------------- -----------------  ---------------
<S>                                                                    <C>                <C>              <C>
        Operating activities:
           Net income                                                  $      7,719,287       4,927,906         3,646,839
           Equity in undistributed net income of subsidiaries                (7,678,937)     (4,830,873)       (3,536,485)
           Other, net                                                          (221,796)       (326,913)           50,443
                                                                         --------------- -----------------  ---------------

                 Net cash provided by (used in) operating
                   activities                                                  (181,446)       (229,880)          160,797
                                                                         --------------- -----------------  ---------------

        Investing activities:
           Investment in PVF Holdings Inc.                                           --        (301,100)               --
                                                                         --------------- -----------------  ---------------

                 Net cash used in investing activities                               --        (301,100)               --
                                                                         --------------- -----------------  ---------------

        Financing activities:
           Repayment on note payable                                         (1,060,000)       (600,000)         (400,000)
           Proceeds from exercise of stock options                                   --           9,529                --
           Cash paid in lieu of fractional shares                                  (939)         (2,141)           (1,349)
           Dividends received from subsidiaries                               1,350,000       1,100,000           300,000
           Purchase of Treasury stock                                           (71,250)             --                --
                                                                         --------------- -----------------  ---------------

                 Net cash provided by (used in) financing
                   activities                                                   217,811         507,388          (101,349)
                                                                         --------------- -----------------  ---------------

                 Net increase (decrease) in cash and cash
                   equivalents                                                   36,365         (23,592)          (59,448)

        Cash and cash equivalents at beginning of year                           27,949          51,541           110,989
                                                                         --------------- -----------------  ---------------

        Cash and cash equivalents at end of year                       $         64,314          27,949            51,541
                                                                         =============== =================  ===============
</TABLE>

                                       46
                                                                     (Continued)
<PAGE>   48
                       PVF CAPITAL CORP. AND SUBSIDIARIES

                   Notes to Consolidated Financial Statements

                          June 30, 1999, 1998, and 1997

(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 allows eligible employees to contribute up to 7%
        of their compensation, 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 employees
        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, 1999, 1998, and 1997
        was $79,638, $72,602, and $76,300, respectively.

                                       47
<PAGE>   49
                         PARK VIEW FEDERAL SAVINGS BANK
                           OFFICE LOCATIONS AND HOURS
<TABLE>
<S>                           <C>                                                 <C>

MAIN OFFICE                   LOBBY                                                   PARMA OFFICE
2618 N. Moreland Blvd.        Mon., Tue., Thurs...........9:00 a.m. - 4:30 p.m.       7448 Ridge Road
Cleveland, Ohio 44120         Fri.........................9:00 a.m. - 5:00 p.m.       Parma, Ohio 44129
216-991-9600                  Sat.........................9:00 a.m. - 1:00 p.m.       440-845-5300

                                            Closed Wednesday

                              DRIVE-UP WINDOW
                              Mon., Tue., Thurs., Fri.....9:00 a.m. - 5:00 p.m.
                              Sat.........................9:00 a.m. - 1:00 p.m.


LA PLACE OFFICE               LOBBY                                                   LAKEWOOD-CLEVELAND OFFICE
2111 Richmond Road            Mon., Tue., Thurs...........9:00 a.m. - 4:30 p.m.       11010 Clifton Blvd.
Beachwood, Ohio 44122         Fri.........................9:00 a.m. - 5:30 p.m.       Cleveland, Ohio 44102
216-831-6373                  Sat.........................9:00 a.m. - 1:00 p.m.       216-631-8900

                                                 Closed Wednesday
                              DRIVE-UP WINDOW
                              Mon., Tue., Thurs...........9:00 a.m. - 5:00 p.m.
                              Fri.........................9:00 a.m. - 6:00 p.m.
                              Sat.........................9:00 a.m. - 1:00 p.m.

BAINBRIDGE OFFICE             LOBBY                                                   MACEDONIA OFFICE
8500 Washington Street        Mon., Tue., Wed., Thurs.....9:00 a.m. - 4:30 p.m.       497 East Aurora Road
Chagrin Falls, Ohio 44023     Fri.........................9:00 a.m. - 5:30 p.m.       Macedonia, Ohio 44056
440-543-8889                  Sat.........................9:00 a.m. - 1:00 p.m.       330-468-0055
                              DRIVE-UP WINDOW
BEDFORD HEIGHTS OFFICE        Mon., Tue., Wed., Thurs. ...9:00 a.m. - 5:00 p.m.       MAYFIELD HEIGHTS OFFICE
25350 Rockside Road           Fri.........................9:00 a.m. - 6:00 p.m.       1456 SOM Center Road
Bedford Hts., Ohio 44146      Sat.........................9:00 a.m. - 1:00 p.m.       Mayfield Hts., Ohio 44124
440-439-2200                                                                          440-449-8597

CHARDON OFFICE                                                                        MENTOR OFFICE
408 Water Street                                                                      6990 Heisley Road
Chardon, Ohio 44024                                                                   Mentor, Ohio 44060
440-285-2343                                                                          440-944-0276

</TABLE>


                             ADMINISTRATIVE OFFICES
                               25350 Rockside Road
                            Bedford Hts., Ohio 44146
                                  440-439-6790
                                 Monday - Friday
                              9:00 a.m. - 5:00 p.m.

<PAGE>   50

PVF CAPITAL CORP.

BOARD OF DIRECTORS

JAMES W. MALE
Chairman of the Board

JOHN R. MALE
President and
Chief Executive 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

EXECUTIVE OFFICERS

JAMES W. MALE
Chairman of the Board

JOHN R. MALE
President and
Chief Executive Officer

C. KEITH SWANEY
Vice President and Treasurer

JEFFREY N. MALE
Vice President and
Corporate Secretary


PARK VIEW FEDERAL SAVINGS BANK

EXECUTIVE OFFICERS

JOHN R. MALE
President and
Chief Executive Officer

C. KEITH SWANEY
Executive Vice President and
Chief Financial Officer

JEFFREY N. MALE
Senior Vice President

CAROL S. PORTER
Corporate Secretary and
Marketing Director

EDWARD B. DEBEVEC
Treasurer

OTHER OFFICERS

ANNE M. JOHNSON
Vice President
Mortgage Loan Servicing

ADELINE NOVAK
Vice President
Human Resources

ROBERT J. PAPA
Vice President
Construction Lending

JOHN E. SCHIMMELMANN
Vice President
Savings Administration

KENNAIRD H. STEWART
Vice President
Commercial Real Estate Lending

ROBERT D. TOTH
Vice President
Data Processing

GENERAL INFORMATION

INDEPENDENT
CERTIFIED ACCOUNTANTS

KPMG LLP
1500 National City Center
1900 East Ninth Street
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 10AT66-4129
38 Fountain Square
Cincinnati, Ohio 45263

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

STOCK LISTING
NASDAQ Small-Cap Market
Symbol:  PVFC

ANNUAL MEETING
The 1999 Annual Meeting of
Stockholders will be held on
October 18, 1999 at 10:00 a.m. at the
Cleveland Marriott 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, 1999 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., 2618 N. Moreland Boulevard,
Cleveland, Ohio 44120.



<PAGE>   51


                            [PVF CAPITAL CORP. LOGO]

         2618 North Moreland Blvd., Cleveland, Ohio 44120, 216-991-9600