Investor says PVF Capital's bank is poised for expansion, but doubts management can pull it off

By Lisa Kerner

Charlotte, N.C., May 16 - PVF Capital Corp. investor Ancora Capital, LP said despite the current environment for construction and development lending, as well as for mortgage financing, it believes there are several exceptionally favorable factors exclusive to Park View Federal Savings Bank, which is held by PVF Capital.

Park View's asset base is the ideal size to undertake the costs of developing non-mortgage-related new business, the investor said in a schedule 13D filing with the Securities and Exchange Commission.

In addition, Ancora said Park View's comprehensive footprint "provides an ideal base for more aggressive expansion."

However, Ancora said that Park View "lacks the depth in management to undertake these challenges."

Ancora, a 6.87% shareholder, would support proposals that plan to move the company forward, the filing stated.

The SEC filing reported Ancora's purchase of 58,765 shares of Solon, Ohio-based PVF Capital between April 17 and May 5.

Ancora also expressed support for public comments made by fellow shareholder Umberto Fedeli.

PVF Capital sent an open letter to stockholders on Friday in an attempt to "set the record straight" regarding Fedeli's statements, noting Fedeli has been on a year-long campaign to assert control over the company.

Rather than allow Fedeli to have board representation, name a new company president and acquire a controlling interest in PVF Capital, the company agreed to a merger transaction that would have benefited all the stockholders, the letter said.

PVF Capital said it has a solid business model, is well capitalized and is well managed.

"This is no doubt the beginning of a long and distracting process, and we do not intend to wage a protracted battle for publicity," PVF Capital chairman and chief executive officer John R. Male stated in the letter to shareholders.

In April, PVF Capital announced the termination of its agreement and plan of merger with United Community Financial Corp.

Originally, United Community, a Youngstown, Ohio-based unitary thrift holding company, agreed to acquire PVF Capital in a stock and cash transaction valued at about $130.8 million and expected to close by the end of 2007, it was previously reported.

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