Executive Summary

Q4 2021 (three months ended December 31, 2021) net income was $0.33M and diluted EPS was $0.19, down 7.0% YoY on lower net interest income and higher occupancy/equipment costs tied to a branch closure; sequential EPS improved from $0.16 in Q1 FY2022 (three months ended September 30, 2021) as non-interest income and tax expense provided offsets .
Interest income fell YoY on lower market yields across investment and MBS portfolios, partly offset by higher average balances; interest expense declined on lower rates paid on deposits and FHLB advances, with higher average balances tempering the benefit .
Management highlighted continued credit normalization—no loans in COVID-19 deferral—and expects to reverse the COVID-19 portion of the allowance through fiscal 2022, a potential earnings tailwind if macro trends remain favorable .
No formal guidance or earnings call transcript was available; therefore, no Wall Street consensus comparison was possible via S&P Global for this micro-cap bank (consensus not mapped) .

What Went Well and What Went Wrong

What Went Well
- Sequential improvement: EPS rose to $0.19 (Q4 2021) from $0.16 (Q1 FY2022), aided by higher non-interest income and lower taxes .
- Credit normalization continued: “As of December 31, 2021, the Company continued to have no loans in COVID-19 deferral status… anticipates continuing to reverse the COVID-19 portion of the allowance… through fiscal 2022” .
- Non-interest income increased YoY driven by investment securities gains and higher service charges, supporting earnings despite NII headwinds .
What Went Wrong
- Net interest income contracted YoY (-$41k) as lower market yields weighed on asset returns; loan balances were lower, though loan yields improved .
- Non-interest expense increased (+$43k), primarily occupancy/equipment (+$26k) due to Bellevue branch closing and higher salaries/benefits (+$12k), pressuring operating leverage .
- Investment/MBS yield pressure persisted, reflecting the low-rate environment; interest income fell by $112k YoY despite higher securities balances .

Financial Results

Metric ($USD Thousands, except per-share)	Q4 2020 (three months ended 12/31/2020)	Q3 2021 (three months ended 9/30/2021)	Q4 2021 (three months ended 12/31/2021)
Interest Income	$1,459	$1,319	$1,347
Interest Expense	$216	$175	$145
Net Interest Income	$1,243	$1,144	$1,202
Provision for Loan Losses	$(8)	$(14)	$(22)
Non-Interest Income	$103	$138	$138
Non-Interest Expense	$876	$932	$919
Income Before Taxes	$478	$364	$443
Income Taxes	$123	$93	$113
Net Income	$355	$271	$330
Diluted EPS ($)	$0.20	$0.16	$0.19

KPIs and Balance Sheet (period-end):

Metric	Jun 30, 2021	Sep 30, 2021	Dec 31, 2021
Total Assets ($000)	$346,078	$351,664	$355,571
Net Loans Receivable ($000)	$80,684	$81,300	$78,526
Deposits ($000)	$157,167	$155,288	$161,385
FHLB Advances – Short-term ($000)	$113,093	$115,594	$148,600
FHLB Advances – Long-term Fixed ($000)	$10,000	$10,000	$5,000
FHLB Advances – Long-term Variable ($000)	$25,000	$25,000	$0
Equity ($000)	$38,389	$38,421	$38,222
Book Value/Share – Common ($)	$20.37	$20.39	$20.29
Tier I Leverage Ratio (%)	11.71%	10.95%	10.85%

Notes:

YoY: EPS declined to $0.19 from $0.20; NII down $41k; non-interest income up $35k; non-interest expense up $43k .
Sequential (Q3→Q4): EPS $0.16→$0.19; NII $1,144k→$1,202k; non-interest expense $932k→$919k .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/Net Interest Income	Q4 2021 and FY 2022	None disclosed	None disclosed	Maintained (no guidance)
EPS	Q4 2021 and FY 2022	None disclosed	None disclosed	Maintained (no guidance)
Credit/Allowance Direction	FY 2022	Qualitative: reverse COVID-19 portion of allowance anticipated	Reaffirmed qualitative plan	Maintained (qualitative)
Dividends	Q4 2021	Not discussed in earnings 8-Ks	Not discussed	Maintained (no disclosure)

Earnings Call Themes & Trends

No earnings call transcript available for Q4 2021 or the prior quarters; themes below derive from the company’s earnings press releases.

Topic	Previous Mentions (Q3 FY2021 – three months ended 3/31/2021)	Previous Mentions (Q4 FY2021 – three months ended 6/30/2021)	Current Period (Q4 2021 – three months ended 12/31/2021)	Trend
Net interest income pressure from rates	NII down on lower yields across floating-rate investments/MBS; interest income down $1.3M YoY for the quarter	NII down $369k YoY; interest income down $770k YoY; lower market rates and balances cited	NII down $41k YoY; interest income down $112k YoY; lower market yields, loan balances cited	Improving sequentially but still pressured
Credit quality/COVID allowance	Reduction in off-balance sheet provision; nine months: lower provisions; macro normalization	Provision decreased; lower average loans outstanding	No loans in COVID-19 deferral; anticipate reversing COVID allowance through FY2022	Improving/normalizing
Non-interest income (securities gains, fees)	Up YoY: investment securities gains and lower OTTI	Up YoY: lower OTTI, gains on sales, higher ATM fees	Up YoY: higher investment securities gains and service charges	Stable positive contributor
Operating expenses	Higher employee compensation, occupancy; FDIC premiums higher in 9M	Slight decrease QoQ; but elevated FDIC premiums YoY in FY	Higher occupancy/equipment tied to Bellevue branch closing; higher salaries/benefits	Mixed; branch consolidation costs near term
Funding mix (deposits vs FHLB)	Short-term FHLB advances $82,093k; deposits $155,214k	Short-term FHLB $113,093k; deposits $157,167k	Short-term FHLB $148,600k; deposits $161,385k	Higher FHLB short-term usage

Management Commentary

“As of December 31, 2021, the Company continued to have no loans in COVID-19 deferral status. The Company anticipates continuing to reverse the COVID-19 portion of the allowance for loan and lease losses throughout fiscal 2022 assuming continued favorable trends in the COVID-19 pandemic.”
“The decrease in interest income… was primarily attributable to lower market yields earned on the Company’s investment and mortgage-backed securities portfolio and lower average balances of loans outstanding…”
“The increase in non-interest expense was primarily attributable to an increase of $26 thousand in occupancy and equipment expense (mostly attributable to costs associated with closing the Bellevue branch) and an increase of $12 thousand in salaries and employee benefits…”
Prior quarter framing: “Net income of $271 thousand or $0.16 per diluted share… decrease… primarily attributable to a $196 thousand decrease in net interest income…”

Q&A Highlights

No earnings call or Q&A transcript was available for Q4 2021 or the prior two quarters; all commentary is derived from the company’s earnings press releases .

Estimates Context

Wall Street consensus EPS and revenue estimates via S&P Global were unavailable for WVFC this quarter due to missing CIQ mapping; therefore, no beat/miss assessment versus consensus can be provided .

Key Takeaways for Investors

Sequential stabilization in EPS ($0.19) and net income ($0.33M) alongside higher non-interest income suggests early signs of earnings resilience despite ongoing NII yield pressure; monitor rate trajectory and asset mix shifts .
Continued credit normalization with no COVID deferrals and anticipated allowance reversal through FY2022 is a positive earnings lever if macro trends hold; track provision releases versus actual credit metrics .
Expense pressure tied to branch consolidation (Bellevue) impacted Q4; once integration costs subside, operating leverage could improve if NII stabilizes; evaluate subsequent quarters for normalization .
Balance sheet shows increased short-term FHLB funding usage; funding costs and duration management are key risk areas if rates rise; watch deposit pricing and advance laddering .
With no formal guidance and no consensus coverage, positioning should emphasize reported trends and qualitative signals from press releases; absence of an earnings call reduces visibility into strategic initiatives .
Near-term trading implications: sentiment may hinge on evidence of NII recovery and visible allowance releases; medium-term thesis depends on rate environment, funding mix optimization, and non-interest income sustainability .

WVS FINANCIAL CORP (WVFC)·Q4 2021 Earnings Summary