NEW YORK, June 11, 2014 (GLOBE NEWSWIRE) -- Carver Bancorp, Inc. (the "Company") (Nasdaq:CARV), the holding company for Carver Federal Savings Bank ("Carver" or the "Bank"), today announced financial results for its fourth quarter and fiscal year ended March 31, 2014 ("Fiscal 2014").
The Company reported a net loss of $418 thousand or basic and diluted loss per share of $0.11 for the fourth quarter of its fiscal year ending March 31, 2014, compared to net income of $687 thousand or basic and diluted earnings per share of $0.19, for the prior year period. The Company reported net income of $231 thousand or basic and diluted earnings per share of $0.06 for fiscal year 2014, compared to net income of $662 thousand, or basic and diluted earnings per share of $0.18 for fiscal year 2013.
Deborah C. Wright, the Company's Chairman and CEO said: "As the economy continues to improve, growing demand for our traditional and innovative banking products and services is driving Carver's recovery. We realized our second consecutive profitable year since the economic downturn and continue to see improvement in our loan portfolio, with non-performing assets declining 21% from the prior quarter and 59% year-over-year. For the full year, net interest margin remained strong at 3.35%, funding costs were stable and the Tier I leverage ratio was flat at 10.44%. During the quarter we chose to sell certain non-performing loans and make strategic investments to upgrade our technology platform to better serve our customers and attract new business. While these actions impacted our quarterly results, we believe they are prudent business decisions that will benefit the Company going forward.
"The recent upgrade to our core technology platform provides our customers with peer competitive, state-of-the-art mobile banking options and expanded products and services including the ability to open new accounts online. The new platform also seamlessly integrates the Carver Community Cash product line with our other online banking services. Carver Community Cash, which serves the underbanked community, continues to perform well and helps to seed growth in the more traditional deposit-based channel."
Ms. Wright concluded: "This year we are celebrating our 65th year as a community bank focused on serving urban customers in New York City. On behalf of our Board of Directors and the entire Carver team, I would like to thank our customers, stockholders and partners for their ongoing commitment to Carver."
Statement of Operations Highlights
Fourth Quarter Results
The Company reported a net loss of $418 thousand for the three months ended March 31, 2014, compared to net income of $687 thousand in the prior year period. The primary driver of the change was a net increase in the loan loss provision in the current quarter, driven by the transfer of loans to held-for-sale ("HFS"), partially offset by an improvement in non performing loans. This impact was partially offset by higher non-interest income and lower non-interest expense in the current period.
Net Interest Income
Interest income increased $143 thousand, or 2.6%, to $5.7 million in the fourth quarter, compared to $5.6 million for the prior year quarter, primarily attributable to a $23.1 million, or 6.1% increase in average loans over the prior year period. The average yield on mortgage-backed securities increased 81 basis points to 2.32% from 1.51% as higher yielding securities were added to the portfolio in the current fiscal year.
Interest expense decreased $108 thousand, or 9.9%, to $986 thousand in the fourth quarter, compared to $1.1 million for the prior year quarter, following lower rates paid on money market accounts and certificates of deposits, and restructuring of certain long-term borrowings in the first quarter of the current fiscal year. The average rate on interest-bearing liabilities decreased 10 basis points to 0.82% for the quarter ended March 31, 2014.
Provision for Loan Losses
The Company recorded a $300 thousand provision for loan losses for the fourth quarter compared to a $3.7 million recovery of loan losses for the prior year quarter. For the three months ended March 31, 2014, net charge-offs of $1.5 million were recognized, compared to net recoveries of $219 thousand in the prior year period. Charge-offs and recoveries in both periods were primarily related to loans moved to held-for-sale ("HFS") and impaired loans.
Non-interest Income
Non-interest income increased $755 thousand, or 66.6%, to $1.9 million in the fourth quarter, compared to $1.1 million for the prior year quarter. Most of the increase resulted from higher loan fees in the current period, compared to losses on real estate owned which negatively impacted non-interest income in the prior year period.
Non-interest Expense
Non-interest expense decreased $1.5 million to $6.9 million during the fourth quarter, compared to $8.4 million in the prior year quarter. The decrease is primarily due to the release of reserves for losses associated with repurchase of mortgage loans sold by the Bank to Fannie Mae.
Income Taxes
Income tax expense was $8 thousand for the fourth quarter compared to $64 thousand in the prior year period.
Fiscal Year 2014 Results
The Company reported net income of $231 thousand for fiscal 2014 compared to net income of $662 thousand for the prior year period. The change was driven by a higher recovery of loan losses in the prior year period, partially offset by higher net interest income and lower non-interest expense in the current year.
Net Interest Income
Interest income decreased $537 thousand, or 2.3%, to $23.2 million compared to $23.8 million in the prior year period, with the decrease primarily attributed to a $21.8 million, or 5.4%, decrease in average loans. The average yield on loans increased 12 basis points to 5.38% from 5.26% following a 59.0% reduction in non-performing loans. The decline in average loan balances did, however, decrease total interest income on loans. The average yield on mortgage-backed securities increased 16 basis points to 2.07% from 1.91% in the prior year period, as higher yielding securities were added to the portfolio in the current fiscal year.
Interest expense decreased $927 thousand, or 19.0%, to $4.0 million, compared to $4.9 million in the prior year, due to lower rates paid on money market accounts and certificates of deposits, and restructuring of certain long-term borrowings in the first quarter of the fiscal year. The average yield on interest-bearing liabilities decreased 17 basis points to 0.82%.
Provision for Loan Losses
The Company recorded a $426 thousand recovery of loan losses for the fiscal year, compared to $3.3 million for the prior year period. For the year ended March 31, 2014, net charge-offs of $3.3 million were recognized compared to $5.5 million in the prior year. Charge-offs in both periods were primarily related to loans that moved to HFS and impaired loans.
Non-interest Income
Non-interest income decreased $243 thousand, or 3.4%, to $6.8 million compared to $7.0 million in the prior year. The decrease is attributable to higher gains on sale of loans of $931 thousand and a $625 thousand New Markets Tax Credit ("NMTC") fee in the prior year period, offset by $378 thousand in higher gains on sale of securities and a $277 thousand increase in loan fees and service charges in the current year.
Non-interest Expense
Non-interest expense decreased $2.9 million or 10.0% to $26.3 million compared to $29.2 million in the prior year period. The decrease is attributed to lower expenses in most categories including a $1.8 million release of reserves for losses associated with the repurchase of mortgage loans sold by the Bank to Fannie Mae, and a $201 thousand decrease in net equipment expense.
Income Taxes
Income tax expense was $102 thousand for the fiscal year compared to $328 thousand in the prior year period due to lower pre-tax net income in the current period.
Financial Condition Highlights
At March 31, 2014, total assets increased $1.5 million, or 0.2%, to $639.8 million, compared to $638.3 million at March 31, 2013. The overall change was due to increases in the loan portfolio, net of the allowance for loan losses, of $23.6 million, and cash and cash equivalents of $17.9 million. These increases were offset by decreases of $26.6 million in the investment portfolio and HFS loans of $8.1 million.
Total investment securities decreased $26.6 million, or 21.3%, to $98.5 million at March 31, 2014, compared to $125.1 million at March 31, 2013. This change reflects a decrease of $26.6 million in available-for-sale securities, as the Company sold its lowest yielding securities.
Net loans receivable increased $19.9 million, or 5.4%, to $390.0 million at March 31, 2014, compared to $370.1 million at March 31, 2013. The majority of the increase resulted from loan originations, purchases, and advances of $124 million, offset by $90 million of principal repayments and loan payoffs across all loan classifications. An additional $15.2 million in loans were transferred from held-for-investment to HFS and $2.5 million represented principal charge-offs as loans were moved to HFS.
HFS loans decreased $8.1 million, or 61.8%, to $5.0 million at March 31, 2014, as the Company continued to take aggressive steps to complete resolution of troubled loans. During fiscal 2014, $12.7 million in loans, net of charge-offs, were transferred into the HFS portfolio from the held-for-investment portfolio. This increase was offset by $20.6 million in loan sales and paydowns.
Total liabilities increased $6.8 million, or 1.2%, to $588.3 million at March 31, 2014, compared to $581.5 million at March 31, 2013, following an increase in deposits of $13.7 million, partially offset by a decrease in borrowings of $6.0 million.
Deposits increased $13.7 million, or 2.8%, to $509.4 million at March 31, 2014, compared to $495.7 million at March 31, 2013, primarily due to increases in money market deposits and certificates of deposit during the period, partially offset by lower checking deposits.
Advances from the Federal Home Loan Bank of New York ("FHLB-NY") and other borrowed money decreased $6.0 million, or 7.9%, to $70.4 million at March 31, 2014, compared to $76.4 million at March 31, 2013, as growth in deposits replaced maturing short-term borrowings.
Total equity decreased $5.2 million, or 9.2%, to $51.5 million at March 31, 2014, compared to $56.7 million at March 31, 2013. The majority of the decrease was due to a $5.8 million change in unrealized losses on investments following an increase in interest rates during the fiscal year, partially offset by a $502 thousand change in unrealized loss on pension liability from termination of the Company's pension fund and net income earned for the fiscal year.
Asset Quality
At March 31, 2014, non-performing assets totaled $18.9 million, or 3.0% of total assets, compared to $24.0 million or 3.8% of total assets at December 31, 2013 and $46.1 million or 7.2% of total assets at March 31, 2013. Non-performing assets at March 31, 2014 were comprised of $8.2 million of loans 90 days or more past due and non-accruing, $3.0 million of loans classified as a troubled debt restructuring, $1.3 million of loans that are either performing or less than 90 days past due that have been classified as impaired, $1.4 million of Real Estate Owned, and $5.0 million of loans classified as HFS.
The allowance for loan losses was $7.2 million at March 31, 2014, which represents a ratio of the allowance for loan losses to non-performing loans of 57.6% compared to 35.9% at March 31, 2013. The ratio of the allowance for loan losses to total loans was 1.9% at March 31, 2014, a decrease from 3.0% at March 31, 2013.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank, founded in 1948 to serve African-American communities whose residents, businesses, and institutions had limited access to mainstream financial services. Carver, the largest African- and Caribbean-American run bank in the United States, operates ten full-service branches in the New York City boroughs of Brooklyn, Manhattan, and Queens. For further information, please visit the Company's website at www.carverbank.com.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, risks and uncertainties. More information about these factors, risks and uncertainties is contained in our filings with the Securities and Exchange Commission.
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||
| March 31, | March 31, | |
| $ in thousands, except per share data | 2014 | 2013 |
| ASSETS | ||
| Cash and cash equivalents: | ||
| Cash and due from banks | $ 115,239 | $ 98,083 |
| Money market investments | 7,315 | 6,563 |
| Total cash and cash equivalents | 122,554 | 104,646 |
| Restricted cash | 6,354 | 10,666 |
| Investment securities: | ||
| Available-for-sale, at fair value | 89,461 | 116,051 |
| Held-to-maturity, at amortized cost (fair value of $8,970 and $9,629 at March 31, 2014 and March 31, 2013, respectively) | 9,029 | 9,043 |
| Total investments | 98,490 | 125,094 |
| Loans held-for-sale ("HFS") | 5,011 | 13,107 |
| Loans receivable: | ||
| Real estate mortgage loans | 362,888 | 334,594 |
| Commercial business loans | 26,930 | 35,281 |
| Consumer loans | 138 | 247 |
| Loans, net | 389,956 | 370,122 |
| Allowance for loan losses | (7,233) | (10,989) |
| Total loans receivable, net | 382,723 | 359,133 |
| Premises and equipment, net | 7,830 | 8,597 |
| Federal Home Loan Bank of New York ("FHLB-NY") stock, at cost | 3,101 | 3,503 |
| Accrued interest receivable | 2,557 | 2,247 |
| Other assets | 11,218 | 11,284 |
| Total assets | $ 639,838 | $ 638,277 |
| LIABILITIES AND EQUITY | ||
| LIABILITIES | ||
| Deposits: | ||
| Savings | $ 98,051 | $ 98,066 |
| Non-interest bearing checking | 53,232 | 58,239 |
| Interest-bearing checking | 24,271 | 25,927 |
| Money market | 127,655 | 113,259 |
| Certificates of deposit | 206,157 | 200,225 |
| Total deposits | 509,366 | 495,716 |
| Advances from the FHLB-New York and other borrowed money | 70,403 | 76,403 |
| Other liabilities | 8,549 | 9,423 |
| Total liabilities | 588,318 | 581,542 |
| EQUITY | ||
| Non-controlling interest | (369) | — |
| STOCKHOLDERS' EQUITY | ||
| Preferred stock (par value $0.01 per share: 45,118 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding) | 45,118 | 45,118 |
| Common stock (par value $0.01 per share: 10,000,000 shares authorized; 3,697,836 and 3,697,364 shares issued; 3,695,892 and 3,695,420 shares outstanding at March 31, 2014 and March 31, 2013, respectively) | 61 | 61 |
| Additional paid-in capital | 56,114 | 55,708 |
| Accumulated deficit | (44,219) | (44,439) |
| Non-controlling interest | — | 141 |
| Treasury stock, at cost (1,944 shares at March 31, 2014 and March 31, 2013) | (417) | (417) |
| Accumulated other comprehensive (loss) income | (4,768) | 563 |
| Total stockholders' equity | 51,889 | 56,735 |
| Total equity | 51,520 | 56,735 |
| Total liabilities and equity | $ 639,838 | $ 638,277 |
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||
| Three Months Ended | Fiscal Year Ended | |||
| March 31, | March 31, | |||
| $ in thousands, except per share data | 2014 | 2013 | 2014 | 2013 |
| Interest income: | ||||
| Loans | $ 5,145 | $ 4,999 | $ 20,734 | $ 21,398 |
| Mortgage-backed securities | 238 | 187 | 1,034 | 971 |
| Investment securities | 312 | 355 | 1,321 | 1,211 |
| Money market investments | 38 | 49 | 159 | 205 |
| Total interest income | 5,733 | 5,590 | 23,248 | 23,785 |
| Interest expense: | ||||
| Deposits | 719 | 758 | 2,797 | 3,508 |
| Advances and other borrowed money | 267 | 336 | 1,154 | 1,370 |
| Total interest expense | 986 | 1,094 | 3,951 | 4,878 |
| Net interest income | 4,747 | 4,496 | 19,297 | 18,907 |
| Provision for (recovery of) loan losses | 300 | (3,713) | (426) | (3,327) |
| Net interest income after provision for loan losses | 4,447 | 8,209 | 19,723 | 22,234 |
| Non-interest income: | ||||
| Depository fees and charges | 810 | 828 | 3,452 | 3,480 |
| Loan fees and service charges | 234 | 127 | 970 | 693 |
| Gain on sale of securities, net | 45 | 114 | 552 | 174 |
| Gain on sale of loans, net | 551 | 537 | 1,319 | 2,250 |
| Gain (loss) on real estate owned | 23 | (520) | (257) | (808) |
| New Markets Tax Credit ("NMTC") fees | — | — | — | 625 |
| Lower of cost or market adjustment on loans held-for-sale | — | (32) | (231) | (32) |
| Other | 226 | 80 | 1,001 | 667 |
| Total non-interest income | 1,889 | 1,134 | 6,806 | 7,049 |
| Non-interest expense: | ||||
| Employee compensation and benefits | 2,755 | 2,883 | 11,086 | 11,126 |
| Net occupancy expense | 1,054 | 941 | 3,688 | 3,625 |
| Equipment, net | 300 | 295 | 983 | 1,184 |
| Data processing | 247 | 335 | 1,072 | 1,176 |
| Consulting fees | 176 | 114 | 506 | 357 |
| Federal deposit insurance premiums | 307 | 254 | 1,236 | 1,248 |
| Other | 2,053 | 3,589 | 7,735 | 10,522 |
| Total non-interest expense | 6,892 | 8,411 | 26,306 | 29,238 |
| (Loss) / income before income taxes | (556) | 932 | 223 | 45 |
| Income tax expense | 8 | 64 | 102 | 328 |
| Consolidated net (loss) / income | (564) | 868 | 121 | (283) |
| Less: Net (loss) / income attributable to non-controlling interest | (146) | 181 | (110) | (945) |
| Net (loss) / income attributable to Carver Bancorp, Inc. | $ (418) | $ 687 | $ 231 | $ 662 |
| (Loss) / Earnings per common share: | ||||
| Basic | $ (0.11) | $ 0.19 | $ 0.06 | $ 0.18 |
| Diluted | $ (0.11) | $ 0.19 | $ 0.06 | $ 0.18 |
| CARVER BANCORP, INC. AND SUBSIDIARIES | |||||
| Non Performing Asset Table | |||||
| $ in thousands |
March 2014 |
December 2013 |
September 2013 |
June 2013 |
March 2013 |
| Loans accounted for on a nonaccrual basis (1): | |||||
| Gross loans receivable: | |||||
| One-to-four family | $ 2,301 | $ 3,736 | $ 4,343 | $ 6,666 | $ 7,642 |
| Multifamily | 2,240 | 1,363 | 758 | 659 | 423 |
| Commercial real estate | 7,024 | 8,702 | 10,503 | 8,091 | 14,788 |
| Construction | — | — | 75 | 693 | 1,230 |
| Business | 993 | 1,120 | 2,457 | 3,350 | 6,505 |
| Consumer | 1 | 1 | 4 | — | 38 |
| Total non-performing loans | $ 12,559 | $ 14,922 | $ 18,140 | $ 19,459 | $ 30,626 |
| Other non-performing assets (2): | |||||
| Real estate owned | 1,369 | $ 1,423 | $ 970 | $ 946 | 2,386 |
| Loans held-for-sale | 5,011 | 7,678 | 7,854 | 9,709 | 13,107 |
| Total other non-performing assets | 6,380 | 9,101 | 8,824 | 10,655 | 15,493 |
| Total non-performing assets (3): | $ 18,939 | $ 24,023 | $ 26,964 | $ 30,114 | $ 46,119 |
| Non-performing loans to total loans | 3.22 % | 3.80 % | 4.55 % | 5.47 % | 8.27 % |
| Non-performing assets to total assets | 2.96 % | 3.76 % | 4.25 % | 4.75 % | 7.23 % |
| (1) Nonaccrual status denotes any loan where the delinquency exceeds 90 days past due and in the opinion of management the collection of contractual interest and/or principal is doubtful. Payments received on a nonaccrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on assessment of the ability to collect on the loan. | |||||
| (2) Other non-performing assets generally represent loans that the Bank is in the process of selling and has designated held-for-sale or property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure). These assets are recorded at the lower of their cost or fair value. | |||||
| (3) Troubled debt restructured loans performing in accordance with their modified terms for less than six months and those not performing in accordance with their modified terms are considered nonaccrual and are included in the nonaccrual category in the table above. At March 31, 2014 there were $6.3 million TDR loans that have performed in accordance with their modified terms for a period of at least six months. These loans are generally considered performing loans and are not presented in the table above. | |||||
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED AVERAGE BALANCES | ||||||
| For the Three Months Ended March 31, | ||||||
| 2014 | 2013 | |||||
| Average | Average | Average | Average | |||
| $ in thousands | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost |
| Interest-Earning Assets: | ||||||
| Loans (1) | $ 402,063 | $ 5,145 | 5.12 % | $ 378,993 | $ 4,999 | 5.28 % |
| Mortgage-backed securities | 41,110 | 238 | 2.32 % | 49,552 | 187 | 1.51 % |
| Investment securities | 51,984 | 240 | 1.85 % | 61,912 | 275 | 1.78 % |
| Restricted cash deposit | 6,464 | — | 0.03 % | 10,645 | 1 | 0.03 % |
| Equity securities (2) | 2,114 | 19 | 3.65 % | 2,750 | 23 | 3.39 % |
| Other investments and federal funds sold | 84,025 | 91 | 0.44 % | 89,188 | 105 | 0.48 % |
| Total interest-earning assets | 587,760 | 5,733 | 3.90 % | 593,040 | 5,590 | 3.77 % |
| Non-interest-earning assets | 14,329 | 12,849 | ||||
| Total assets | $ 602,089 | $ 605,889 | ||||
| Interest-Bearing Liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing checking | $ 24,114 | $ 9 | 0.15 % | $ 25,310 | $ 10 | 0.16 % |
| Savings and clubs | 96,183 | 63 | 0.27 % | 96,617 | 62 | 0.26 % |
| Money market | 119,907 | 137 | 0.46 % | 113,918 | 142 | 0.51 % |
| Certificates of deposit | 199,818 | 503 | 1.02 % | 201,036 | 537 | 1.08 % |
| Mortgagors deposits | 1,779 | 7 | 1.60 % | 1,733 | 7 | 1.64 % |
| Total deposits | 441,801 | 719 | 0.66 % | 438,614 | 758 | 0.70 % |
| Borrowed money | 44,859 | 267 | 2.41 % | 44,836 | 336 | 3.04 % |
| Total interest-bearing liabilities | 486,660 | 986 | 0.82 % | 483,450 | 1,094 | 0.92 % |
| Non-interest-bearing liabilities: | ||||||
| Demand | 54,340 | 58,957 | ||||
| Other liabilities | 8,360 | 8,607 | ||||
| Total liabilities | 549,360 | 551,014 | ||||
| Non-controlling interest | (225) | (434) | ||||
| Stockholders' equity | 52,954 | 55,309 | ||||
| Total liabilities & stockholders' equity | $ 602,089 | $ 605,889 | ||||
| Net interest income | $ 4,747 | $ 4,496 | ||||
| Average interest rate spread | 3.08 % | 2.85 % | ||||
| Net interest margin | 3.23 % | 3.03 % | ||||
| (1) Includes nonaccrual loans and deferred fees | ||||||
| (2) Includes FHLB-NY stock | ||||||
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED AVERAGE BALANCES | ||||||
| For the Fiscal Year Ended March 31, | ||||||
| 2014 | 2013 | |||||
| Average | Average | Average | Average | |||
| $ in thousands | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost |
| Interest-Earning Assets: | ||||||
| Loans (1) | $ 385,259 | $ 20,734 | 5.38 % | $ 407,106 | $ 21,398 | 5.26 % |
| Mortgage-backed securities | 49,921 | 1,034 | 2.07 % | 50,958 | 971 | 1.91 % |
| Investment securities | 55,643 | 1,016 | 1.83 % | 53,012 | 874 | 1.65 % |
| Restricted cash deposit | 7,209 | 1 | 0.03 % | 7,458 | 2 | 0.03 % |
| Equity securities (2) | 2,280 | 88 | 3.86 % | 2,596 | 93 | 3.58 % |
| Other investments and federal funds sold | 75,945 | 375 | 0.49 % | 86,122 | 447 | 0.52 % |
| Total interest-earning assets | 576,257 | 23,248 | 4.03 % | 607,252 | 23,785 | 3.92 % |
| Non-interest-earning assets | 23,575 | 9,264 | ||||
| Total assets | $ 599,832 | $ 616,516 | ||||
| Interest-Bearing Liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing checking | $ 25,184 | $ 40 | 0.16 % | $ 25,842 | $ 42 | 0.16 % |
| Savings and clubs | 96,424 | 256 | 0.27 % | 98,785 | 259 | 0.26 % |
| Money market | 116,535 | 536 | 0.46 % | 111,148 | 739 | 0.66 % |
| Certificates of deposit | 191,854 | 1,931 | 1.01 % | 209,622 | 2,431 | 1.16 % |
| Mortgagors deposits | 1,955 | 34 | 1.74 % | 2,079 | 37 | 1.78 % |
| Total deposits | 431,952 | 2,797 | 0.65 % | 447,476 | 3,508 | 0.78 % |
| Borrowed money | 51,264 | 1,154 | 2.25 % | 44,099 | 1,370 | 3.11 % |
| Total interest-bearing liabilities | 483,216 | 3,951 | 0.82 % | 491,575 | 4,878 | 0.99 % |
| Non-interest-bearing liabilities: | ||||||
| Demand | 55,405 | 61,293 | ||||
| Other liabilities | 7,127 | 8,236 | ||||
| Total liabilities | 545,748 | 561,104 | ||||
| Non-controlling interest | (180) | (55) | ||||
| Stockholders' equity | 54,264 | 55,467 | ||||
| Total liabilities & stockholders' equity | $ 599,832 | $ 616,516 | ||||
| Net interest income | $ 19,297 | $ 18,907 | ||||
| Average interest rate spread | 3.21 % | 2.93 % | ||||
| Net interest margin | 3.35 % | 3.11 % | ||||
| (1) Includes nonaccrual loans and deferred fees | ||||||
| (2) Includes FHLB-NY stock | ||||||
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED SELECTED KEY RATIOS | ||||||||
| Three Months Ended | Fiscal Year Ended | |||||||
| March 31, | March 31, | |||||||
| Selected Statistical Data: | 2014 | 2013 | 2014 | 2013 | ||||
| Return on average assets (1) | (0.28)% | 0.45 % | 0.04 % | 0.11 % | ||||
| Return on average stockholders' equity (2) | (2.99)% | 4.93 % | 0.41 % | 1.18 % | ||||
| Net interest margin (3) | 3.23 % | 3.03 % | 3.35 % | 3.11 % | ||||
| Interest rate spread (4) | 3.08 % | 2.85 % | 3.21 % | 2.93 % | ||||
| Efficiency ratio (5) (10) | 103.86 % | 149.40 % | 100.78 % | 112.64 % | ||||
| Operating expenses to average assets (6) (10) | 4.58 % | 5.55 % | 4.39 % | 4.74 % | ||||
| Average equity to average assets (7) (10) | 8.80 % | 9.13 % | 9.05 % | 9.00 % | ||||
| Average interest-earning assets to average interest-bearing liabilities | 1.21 | x | 1.23 | x | 1.19 | x | 1.24 | x |
| Basic earnings (loss) per share | $ (0.11) | $ 0.19 | $ 0.06 | $ 0.18 | ||||
| Average shares outstanding | 3,696,225 | 3,695,653 | 3,696,149 | 3,695,625 | ||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| Capital Ratios: | ||||||||
| Tier 1 leverage ratio (8) | 10.44 % | 10.26 % | ||||||
| Tier 1 risk-based capital ratio (8) | 17.64 % | 16.99 % | ||||||
| Total risk-based capital ratio (8) | 20.21 % | 19.55 % | ||||||
| Asset Quality Ratios: | ||||||||
| Non-performing assets to total assets (9) | 2.96 % | 7.23 % | ||||||
| Non-performing loans to total loans receivable (9) | 3.22 % | 8.27 % | ||||||
| Allowance for loan losses to total loans receivable | 1.85 % | 2.97 % | ||||||
| Allowance for loan losses to non-performing loans | 57.59 % | 35.88 % | ||||||
| (1) Net income/(loss), annualized, divided by average total assets. | ||||||||
| (2) Net income/(loss), annualized, divided by average total stockholders' equity (excludes OCI and Minority interest). | ||||||||
| (3) Net interest income, annualized, divided by average interest-earning assets. | ||||||||
| (4) Combined weighted average interest rate earned less combined weighted average interest rate cost. | ||||||||
| (5) Operating expenses divided by sum of net interest income plus non-interest income. | ||||||||
| (6) Non-interest expenses, annualized, divided by average total assets. | ||||||||
| (7) Average equity divided by average assets for the period ended. | ||||||||
| (8) These ratios reflect consolidated bank only. | ||||||||
| (9) Non-performing assets consist of nonaccrual loans, loans HFS and real estate owned, divided by average total assets. | ||||||||
| (10) Non-GAAP Financial Measures: In addition to evaluating Carver Bancorp's results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements their evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency ratio. Management believes this non-GAAP financial measure provides information useful to investors in understanding the Company's underlying operating performance and trends, and facilitates comparisons with the performance of other banks and thrifts. Further, the efficiency ratio is used by management in its assessment of financial performance, including non-interest expense control. | ||||||||