Executive Summary

Q1 FY2022 (three months ended September 30, 2021) delivered net income of $0.271M and diluted EPS of $0.16; sequentially higher vs Q4 FY2021 EPS $0.15, but lower year-over-year vs $0.24 in Q1 FY2021 .
Net interest income was $1.144M, down year-over-year as lower asset yields outweighed lower funding costs; non-interest expense rose on salaries/benefits and provision for off-balance sheet commitments .
Management emphasized continued reversal of COVID-19 allowance (no loans in COVID deferral), which supported lower provision for loan losses and is expected to continue assuming favorable trends .
No formal financial guidance or earnings call transcript was available; consensus estimates (EPS, revenue, target price) from S&P Global were unavailable for WVFC (CIQ mapping missing), so no beat/miss assessment could be made .

What Went Well and What Went Wrong

What Went Well

Sequential EPS improvement to $0.16 from $0.15 in Q4 FY2021, supported by disciplined cost control and lower interest expense vs prior-year comparisons .
Continued normalization of credit: no loans in COVID-19 deferral status and ongoing reversal of the COVID-specific allowance, contributing to a lower provision for loan losses in the quarter .
Non-interest income benefited from higher investment securities gains vs the prior year Q1 FY2021, partly offsetting pressures in net interest income .

What Went Wrong

Year-over-year decline: net income down to $0.271M from $0.420M in Q1 FY2021, with net interest income pressured by lower asset yields despite lower funding costs .
Operating expense headwinds: salaries and benefits increased by ~$36K and provision for off-balance sheet items rose by ~$21K vs prior year, elevating non-interest expense .
Funding mix sensitivity: higher balances of wholesale time deposits and dynamics in FHLB advances indicate continued reliance on wholesale funding, leaving earnings sensitive to rate shifts .

Financial Results

Income Statement Trend (oldest → newest)

Metric (USD)	Q3 FY2021 (Mar 31, 2021)	Q4 FY2021 (Jun 30, 2021)	Q1 FY2022 (Sep 30, 2021)
Interest Income	$1.314M	$1.317M	$1.319M
Interest Expense	$0.181M	$0.169M	$0.175M
Net Interest Income	$1.133M	$1.148M	$1.144M
Provision for Loan Losses	$(0.007)M	$(0.039)M	$(0.014)M
Non-Interest Income	$0.152M	$0.109M	$0.138M
Non-Interest Expense	$0.936M	$0.958M	$0.932M
Income Before Taxes	$0.356M	$0.338M	$0.364M
Income Taxes	$0.091M	$0.082M	$0.093M
Net Income	$0.265M	$0.256M	$0.271M
Diluted EPS	$0.15	$0.15	$0.16

Year-over-Year (Q1 FY2022 vs Q1 FY2021)

Metric (USD)	Q1 FY2022 (Sep 30, 2021)	Q1 FY2021 (Sep 30, 2020)
Interest Income	$1.319M	$1.665M
Interest Expense	$0.175M	$0.325M
Net Interest Income	$1.144M	$1.340M
Non-Interest Income	$0.138M	$0.111M
Non-Interest Expense	$0.932M	$0.880M
Net Income	$0.271M	$0.420M
Diluted EPS	$0.16	$0.24

Balance Sheet and KPIs

Metric	Q3 FY2021 (Mar 31, 2021)	Q4 FY2021 (Jun 30, 2021)	Q1 FY2022 (Sep 30, 2021)
Total Assets	$314.233M	$346.078M	$351.664M
Deposits	$155.214M	$157.167M	$155.288M
FHLB Advances (Short-term)	$82.093M	$113.093M	$115.594M
Equity	$38.506M	$38.389M	$38.421M
Book Value per Share – Common	$20.24	$20.37	$20.39
Annualized ROA	0.43%	0.40%	0.31%
Annualized ROE	3.65%	3.40%	2.82%
Tier I Leverage Ratio	12.37%	11.71%	10.95%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (Revenue/EPS/Margins/OpEx/Tax)	Q1 FY2022	None provided	None provided	Maintained (no guidance)
Dividends	Q1 FY2022	Not disclosed in Q1 materials	Not disclosed in Q1 materials	N/A

Note: No formal guidance was provided in the Q1 FY2022 8-K press release; no separate press releases were found in Q1 FY2022’s window .

Earnings Call Themes & Trends

No earnings call transcript was found for Q1 FY2022; themes below are derived from press releases.

Topic	Previous Mentions (Q3 FY2021)	Previous Mentions (Q4 FY2021)	Current Period (Q1 FY2022)	Trend
COVID-19 Allowance/Deferrals	Reversal of COVID allowance began; lower provision; no loans in COVID deferral	Lower provision; continued normalization	No loans in COVID deferral; continued reversal anticipated through FY2022	Improving credit normalization
Asset Yields (MBS/Loans)	Lower yields on floating-rate MBS and loans pressured interest income	Yields remained a headwind vs prior year	Lower asset yields vs prior year persisted; partially offset by higher balances in floating-rate investments	Persistent yield pressure
Funding Costs (Deposits/FHLB)	Lower rates paid reduced interest expense	Continued benefit from lower rates on deposits and FHLB advances	Lower rates paid helped, though wholesale time deposits remained elevated	Beneficial but diminishing vs prior year
Operating Expenses	Modest increases in compensation/occupancy	Bellevue branch closure costs impacted occupancy/equipment	Salaries/benefits +$36K; provision for off-balance sheet items +$21K	Upward pressure from staffing/commitments
Securities Gains/OTTI	Gains improved vs prior periods; lower OTTI losses	Gains and OTTI remained favorable tailwinds	Higher gains vs prior year contributed to non-interest income	Supportive non-interest income
Branch Footprint	Six offices in North Hills; Bellevue noted	Bellevue closure raised occupancy costs short-term	Ongoing occupancy cost optimization; Bellevue closure effects persist	Consolidation benefits emerging

Management Commentary

The company highlighted that lower market rates and lower average loan balances reduced interest income, partially offset by higher balances in investment and mortgage-backed securities, and lower rates on deposits and FHLB advances .
Credit quality trends remain favorable: “As of September 30, 2021, the Company continued to have no loans in COVID-19 deferral status,” and management “anticipates continuing to reverse the COVID-19 portion of the allowance… throughout fiscal 2022” assuming favorable trends .
Operating costs increased due to “a $36 thousand increase in salaries and employee benefits and a $21 thousand increase in the provision for off-balance sheet items,” partially offset by lower deposit insurance expense .
Securities activities supported non-interest income: “higher investment securities gains” with the absence of prior-year OTTI on PLMBS .

Q&A Highlights

No earnings call transcript was available for Q1 FY2022; therefore, no Q&A highlights or guidance clarifications were disclosed in call format .

Estimates Context

Wall Street consensus (S&P Global) for EPS, revenue, and target price for WVFC was unavailable due to missing Capital IQ mapping; as a result, we cannot assess beat/miss vs consensus for Q1 FY2022 .
Implication: Absent formal consensus, investors should anchor on sequential and year-over-year operating trends and the evolving rate environment; if/when coverage initiates, estimate revisions would likely hinge on net interest margin trajectory, funding mix, and credit normalization.

Key Takeaways for Investors

Sequential improvement: EPS rose to $0.16 from $0.15 in Q4 FY2021, with net income at $0.271M, aided by lower provision and disciplined costs .
Year-over-year pressure: Net interest income and EPS declined versus Q1 FY2021 on lower asset yields; ongoing rate dynamics remain the principal earnings driver .
Credit normalization a tailwind: No COVID-related deferrals and anticipated allowance reversal through FY2022 support lower provision expense and smoother earnings cadence .
Funding mix sensitivity: Wholesale time deposits and FHLB advances continue to influence interest expense; careful monitoring of funding costs as rates rise is warranted .
Cost actions: Bellevue branch closure and staffing efficiencies should gradually lower occupancy and personnel run-rate, though near-term expense volatility may persist .
Non-interest income: Securities gains and absence of OTTI support non-interest income, but these are opportunistic and may not be recurring; core drivers remain NII and credit costs .
Lack of guidance/coverage: With no formal guide and limited Street coverage, trading setups will key off macro rate moves, funding mix updates, and subsequent quarter disclosures rather than estimate beats/misses .

WVS FINANCIAL CORP (WVFC)·Q1 2022 Earnings Summary