PVF Capital Corp. Announces Positive Impact of Repayment of Repurchase Agreement

PVF Capital Corp. PVFC announced today a change in the liquidity position and improvement in the tier 1 core capital ratio of its banking subsidiary, Park View Federal Savings Bank (the "Bank"), as a result of the maturity of a $50 million repurchase agreement, which the Bank entered into in March 2006. The borrowing, which matured March 21, 2011, carried an interest rate of 4.99% and was settled by using a portion of the Bank's short-term cash and cash equivalents position, which totaled $131 million at December 31, 2010. The Company expects to reduce its annual borrowing costs related to the matured borrowing by approximately $2.5 million. As a result of this maturity transaction, the Company's total assets, which were $830.6 million at December 31, 2010, are expected to decline by approximately 6.0%. The Bank's tier 1 core capital ratio, which totaled 8.84% at December 31, 2010, is expected to improve by approximately 50 basis points as a result of the smaller balance sheet.