NEW YORK, Nov. 10, 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 second fiscal quarter of 2015 ended September 30, 2014.
The Company reported net income of $210 thousand, or basic and diluted earnings per share of $0.06, for the second quarter of its fiscal year ending March 31, 2015, compared to net income of $342 thousand, or basic and diluted earnings per share of $0.09, for the quarter ended September 30, 2013. For the six months ended September 30, 2014, the Company reported net income of $381 thousand, or basic and diluted earnings per share of $0.10, compared to net income of $753 thousand, or basic and diluted earnings per share of $0.20 for the comparative prior year period.
Deborah C. Wright, the Company's Chairman and CEO said: "We are pleased to report the second consecutive quarter of profitability following our strategic decisions to sell certain non-performing loans, terminate our pension plan and upgrade our technology platform to better serve our customers and attract new business. We are also extremely pleased with the Office of the Comptroller of the Currency's recent decision to lift its Cease & Desist Order on the Bank. This is significant positive news and affirms the effectiveness of our efforts to strengthen our capital position and improve credit quality. Today, Carver's capital ratios remain strong, with a Tier 1 Capital Ratio over 10% and we continue to improve the overall quality of our loan portfolio. The level of problem loans decreased from a high of $178.1 million as of April 1, 2011 to $18.3 million as of September 30, 2014. As a result, our non-performing loans decreased substantially during this period and are now nearing industry norms.
Our expanded lending team contributed to a 5% growth in loans to $410 million in the most recent period and non-performing loans declined to less than 2% of total loans. We remain disciplined in our lending process notwithstanding competitive pressures, which continue to constrain net interest margin. We are pleased that our deposit base has grown for the fourth consecutive quarter to $520.4 million. This growth is being driven by a strengthened sales team, introduction of our mobile banking platform, and Carver Community Cash product."
Ms. Wright concluded, "As we celebrate our 65th year as a New York City community bank, our entire team remains focused on implementing our strategic plan to improve and expand Carver's financial performance and impact in the communities we serve. We are extremely thankful for the ongoing commitment of our loyal customers and stockholders."
Statement of Operations Highlights
Second Quarter and Six Months Results
The Company reported net income of $210 thousand for the three months ended September 30, 2014, compared to net income of $342 thousand for the prior year period. The primary driver of the change was attributed to lower interest income, partially offset by a release in the loan loss provision.
The Company reported net income of $381 thousand for the six months ended September 30, 2014, compared to net income of $753 thousand for the prior year period. The change was primarily driven by lower non-interest income and higher non-interest expense, partially offset by a recovery in the loan loss provision.
Net Interest Income
Net interest income decreased $367 thousand, or 7.4%, to $4.6 million for the three months ended September 30, 2014, compared to $5.0 million for the comparative prior year period. Interest income decreased $352 thousand, or 5.9%, to $5.6 million, compared to $5.9 million for the prior year quarter. Although the average balance of loans increased $21.6 million, or 5.8%, compared to average loans for the prior year, the average yield on loans decreased 58 basis points from 5.67% to 5.09%. A change in loan mix, with higher one-to-four family loans and lower multifamily loans, led to a lower average yield on loans.
Net interest income decreased $160 thousand, or 1.7%, to $9.4 million for the six months ended September 30, 2014, compared to $9.5 million for the prior year period. Interest income decreased $163 thousand, or 1.4%, to $11.3 million, compared to $11.5 million for the prior year period. Interest income on mortgage-backed securities decreased $150 thousand following a $21.7 million, or 37.3%, decrease in the average balances of mortgage-backed securities from the prior year as the Bank repositioned its investment portfolio with higher yielding securities. The average yield on mortgage-backed securities increased 30 basis points from 1.89% to 2.19%. Interest expense for both periods was essentially flat at $992 thousand for the three months ended September 30, 2014, and $2.0 million for the six months ended September 30, 2014, as an increase in interest expense on deposits was offset by a decrease in interest expense on borrowed funds, as the Bank grew deposits and reduced borrowings.
Provision for Loan Losses
The Company recorded a $713 thousand recovery of loan losses, compared to $505 thousand for the prior year quarter. Net recoveries of $244 thousand were recognized, compared to net charge-offs of $413 thousand in the prior year quarter. For the six months ended September 30, 2014, the Company recorded a $1.5 million recovery of loan losses, compared to a $326 thousand provision for loan losses for the prior year period. Net recoveries of $858 thousand were recognized for the six month period, compared to net charge-offs of $1.9 million in the prior year period. Recoveries of previously charged-off loans in the current period and decreases in historic loan loss rates were the primary drivers of the improvement in both periods.
Non-interest Income
Non-interest income remained relatively unchanged at $1.6 million, decreasing $15 thousand, or 1.0%, from the prior year quarter. For the six months ended September 30, 2014, non-interest income decreased $941 thousand, or 25.4%, to $2.8 million, compared to $3.7 million in the prior year period. Non-interest income in the prior year period included gains on sales of loans and securities as the Bank disposed of non-performing loans and repositioned its investment portfolio. Other non-interest income for the current quarter included a $323 thousand grant from the Community Development Financial Institutions Fund (the "CDFI Fund") of the U.S. Treasury Department.
Non-interest Expense
Non-interest expense increased $154 thousand, or 2.3%, to $6.8 million, compared to $6.6 million for the prior year quarter. For the six months ended September 30, 2014, non-interest expense increased $1.4 million, or 11.9%, to $13.3 million, compared to $11.9 million in the prior year period. The increase was attributed to higher employee compensation and benefit expense and an increase in the reserves for losses associated with repurchase of mortgage loans sold by the Bank to Fannie Mae, partially offset by lower data processing costs following the change in core technology platform, and lower federal deposit insurance premiums.
Income Taxes
Income tax expense was $57 thousand, compared to $16 thousand for the prior year quarter, primarily related to an adjustment in state income taxes. For the six months ended September 30, 2014, income tax expense was $73 thousand, compared to $88 thousand in the prior year period.
Financial Condition Highlights
At September 30, 2014, total assets increased $4.3 million, or 0.7% to $644.1 million, compared to $639.8 million at March 31, 2014. The overall change was primarily due to increases of $21.1 million in the loan portfolio net of the allowance for loan losses and $4.9 million in the investment portfolio, offset by a decrease of $20.6 million in cash and due from banks.
Total investment securities increased $4.9 million, or 5.0%, to $103.4 million at September 30, 2014, compared to $98.5 million at March 31, 2014. The increase was primarily attributed to $5.5 million in short-term available-for-sale investments.
Net loans receivable increased $20.5 million, or 5.3%, to $410.4 million at September 30, 2014, compared to $390.0 million at March 31, 2014 following growth in business and residential loans.
Loans held-for-sale ("HFS") decreased $2.4 million, or 48.0%, to $2.6 million at September 30, 2014, following transfer of a loan into other real estate owned.
Total liabilities increased $2.3 million, or 0.4%, to $591.0 million at September 30, 2014, compared to $588.7 million at March 31, 2014 following growth in deposits, offset by lower borrowed funds.
Deposits increased $11.0 million, or 2.2%, to $520.4 million at September 30, 2014, compared to $509.4 million at March 31, 2014 following an increase in money market and checking accounts, partially offset by lower certificates of deposits.
Advances from the Federal Home Loan Bank of New York ("FHLB-NY") and other borrowed money decreased $8.0 million, or 11.4%, to $62.4 million at September 30, 2014, compared to $70.4 million at March 31, 2014, as growth in deposits replaced maturing short-term borrowings.
Total equity increased $2.0 million, or 3.8%, to $53.1 million at September 30, 2014, compared to $51.2 million at March 31, 2014. The increase was primarily due to a $1.7 million reduction in unrealized losses on investments and net income earned for the six month period.
Asset Quality
At September 30, 2014, non-performing assets totaled $14.8 million, or 2.3% of total assets, compared to $18.9 million or 3.0% of total assets at March 31, 2014, and $27.0 million or 4.2% of total assets at September 30, 2013. Non-performing assets at September 30, 2014 were comprised of $3.5 million of loans 90 days or more past due and nonaccruing, $4.6 million of loans classified as a troubled debt restructuring, $4.1 million of other real estate owned, and $2.6 million of loans classified as HFS.
The allowance for loan losses was $6.6 million at September 30, 2014, which represents a ratio of the allowance for loan losses to non-performing loans of 81.6% compared to 57.6% at March 31, 2014. The ratio of the allowance for loan losses to total loans was 1.6% at September 30, 2014, compared to 1.9% at March 31, 2014 as non-performing assets decreased 21.8% during the period.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver was founded in 1948 to serve African-American communities whose residents, businesses, and institutions had limited access to mainstream financial services. Carver has been designated by the U.S. Treasury Department as a Community Development Financial Institution (CDFI) because of its community-focused banking services and dedication to the economic viability and revitalization of underserved neighborhoods. Carver is the largest African- and Caribbean-American run bank in the United States, with 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 | ||
| $ in thousands except per share data | September 30, 2014 | March 31, 2014 |
| ASSETS | ||
| Cash and cash equivalents: | ||
| Cash and due from banks | $ 94,638 | $ 115,239 |
| Money market investments | 7,713 | 7,315 |
| Total cash and cash equivalents | 102,351 | 122,554 |
| Restricted cash | 6,354 | 6,354 |
| Investment securities: | ||
| Available-for-sale, at fair value | 94,714 | 89,461 |
| Held-to-maturity, at amortized cost (fair value of $8,722 and $8,971 at September 30, 2014 and March 31, 2014, respectively) | 8,654 | 9,029 |
| Total investment securities | 103,368 | 98,490 |
| Loans held-for-sale | 2,606 | 5,011 |
| Loans receivable: | ||
| Real estate mortgage loans | 368,888 | 362,888 |
| Commercial business loans | 41,194 | 26,930 |
| Consumer loans | 353 | 138 |
| Loans, net | 410,435 | 389,956 |
| Allowance for loan losses | (6,597) | (7,233) |
| Total loans receivable, net | 403,838 | 382,723 |
| Premises and equipment, net | 7,520 | 7,830 |
| Federal Home Loan Bank of New York ("FHLB-NY") stock, at cost | 2,574 | 3,101 |
| Accrued interest receivable | 3,180 | 2,557 |
| Other assets | 12,324 | 11,218 |
| Total assets | $ 644,115 | $ 639,838 |
| LIABILITIES AND EQUITY | ||
| LIABILITIES | ||
| Deposits: | ||
| Savings | $ 95,716 | $ 98,051 |
| Non-interest bearing checking | 54,054 | 53,232 |
| Interest-bearing checking | 28,786 | 24,271 |
| Money market | 145,443 | 127,655 |
| Certificates of deposit | 196,411 | 206,157 |
| Total deposits | 520,410 | 509,366 |
| Advances from the FHLB-New York and other borrowed money | 62,403 | 70,403 |
| Other liabilities | 8,171 | 8,900 |
| Total liabilities | 590,984 | 588,669 |
| 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; 3,698,031 and 3,697,836 shares issued; 3,696,087 and 3,695,892 shares outstanding at September 30, 2014 and March 31, 2014, respectively) | 61 | 61 |
| Additional paid-in capital | 56,116 | 56,114 |
| Accumulated deficit | (44,189) | (44,570) |
| Treasury stock, at cost (1,944 shares at September 30, 2014 and March 31, 2014) | (417) | (417) |
| Accumulated other comprehensive loss | (3,059) | (4,768) |
| Total equity attributable to Carver Bancorp, Inc. | 53,630 | 51,538 |
| Non-controlling interest | (499) | (369) |
| Total equity | 53,131 | 51,169 |
| Total liabilities and equity | $ 644,115 | $ 639,838 |
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| Three Months Ended | Six Months Ended | |||
| September 30, | September 30, | |||
| $ in thousands except per share data | 2014 | 2013 | 2014 | 2013 |
| Interest income: | ||||
| Loans | $ 5,000 | $ 5,263 | $ 10,162 | $ 10,178 |
| Mortgage-backed securities | 192 | 285 | 398 | 548 |
| Investment securities | 329 | 348 | 653 | 696 |
| Money market investments | 69 | 46 | 135 | 89 |
| Total interest income | 5,590 | 5,942 | 11,348 | 11,511 |
| Interest expense: | ||||
| Deposits | 719 | 687 | 1,441 | 1,384 |
| Advances and other borrowed money | 273 | 290 | 543 | 603 |
| Total interest expense | 992 | 977 | 1,984 | 1,987 |
| Net interest income | 4,598 | 4,965 | 9,364 | 9,524 |
| Provision for (recovery of) loan losses | (713) | (505) | (1,494) | 326 |
| Net interest income after provision for loan losses | 5,311 | 5,470 | 10,858 | 9,198 |
| Non-interest income: | ||||
| Depository fees and charges | 924 | 878 | 1,820 | 1,790 |
| Loan fees and service charges | 118 | 305 | 213 | 603 |
| Gain on sale of securities | — | 208 | 4 | 486 |
| Gain (loss) on sale of loans, net | (2) | 180 | (2) | 670 |
| Gain (loss) on sale of real estate owned | — | (84) | 4 | (131) |
| Lower of cost or market adjustment on loans held-for-sale | 1 | (163) | 1 | (232) |
| Other | 521 | 253 | 725 | 520 |
| Total non-interest income | 1,562 | 1,577 | 2,765 | 3,706 |
| Non-interest expense: | ||||
| Employee compensation and benefits | 2,999 | 2,646 | 5,787 | 5,014 |
| Net occupancy expense | 959 | 876 | 1,844 | 1,747 |
| Equipment, net | 252 | 209 | 427 | 384 |
| Data processing | 43 | 226 | 320 | 582 |
| Consulting fees | 309 | 92 | 398 | 212 |
| Federal deposit insurance premiums | 115 | 307 | 353 | 616 |
| Other | 2,076 | 2,243 | 4,170 | 3,325 |
| Total non-interest expense | 6,753 | 6,599 | 13,299 | 11,880 |
| Income before income taxes | 120 | 448 | 324 | 1,024 |
| Income tax expense | 57 | 16 | 73 | 88 |
| Consolidated net income | 63 | 432 | 251 | 936 |
| Less: Net income (loss) attributable to non-controlling interest | (147) | 90 | (130) | 183 |
| Net income attributable to Carver Bancorp, Inc. | $ 210 | $ 342 | $ 381 | $ 753 |
| Earnings per common share: | ||||
| Basic | $ 0.06 | $ 0.09 | $ 0.10 | $ 0.20 |
| Diluted | 0.06 | 0.09 | 0.10 | 0.20 |
| CARVER BANCORP, INC. AND SUBSIDIARIES | |||||
| Non Performing Asset Table | |||||
| $ in thousands | September 2014 | June 2014 | March 2014 | December 2013 | September 2013 |
| Loans accounted for on a nonaccrual basis (1): | |||||
| Gross loans receivable: | |||||
| One-to-four family | $ 2,636 | $ 2,651 | $ 2,301 | $ 3,736 | $ 4,343 |
| Multifamily | 1,054 | 671 | 2,240 | 1,363 | 758 |
| Commercial real estate | 2,991 | 3,979 | 7,024 | 8,702 | 10,503 |
| Construction | — | — | — | — | 75 |
| Business | 1,395 | 818 | 993 | 1,120 | 2,457 |
| Consumer | 10 | 5 | 1 | 1 | 4 |
| Total non-performing loans | $ 8,086 | $ 8,124 | $ 12,559 | $ 14,922 | $ 18,140 |
| Other non-performing assets (2): | |||||
| Real estate owned | 4,122 | 4,124 | 1,369 | 1,423 | 970 |
| Loans held-for-sale | 2,606 | 2,611 | 5,011 | 7,678 | 7,854 |
| Total other non-performing assets | 6,728 | 6,735 | 6,380 | 9,101 | 8,824 |
| Total non-performing assets (3): | $ 14,814 | $ 14,859 | $ 18,939 | $ 24,023 | $ 26,964 |
| Non-performing loans to total loans | 1.97% | 2.08% | 3.22% | 3.80% | 4.55% |
| Non-performing assets to total assets | 2.30% | 2.31% | 2.96% | 3.76% | 4.25% |
| (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 September 30, 2014, there were $4.7 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 September 30, | ||||||
| 2014 | 2013 | |||||
| Average | Average | Average | Average | |||
| $ in thousands | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost |
| Interest-Earning Assets: | ||||||
| Loans (1) | $ 393,167 | $ 5,000 | 5.09% | $ 371,577 | $ 5,263 | 5.67% |
| Mortgage-backed securities | 36,006 | 192 | 2.13% | 58,226 | 285 | 1.96% |
| Investment securities | 52,976 | 252 | 1.90% | 60,966 | 266 | 1.75% |
| Restricted cash deposit | 6,354 | 1 | 0.03% | 6,556 | — | 0.03% |
| Equity securities (2) | 1,823 | 18 | 3.92% | 2,717 | 27 | 3.94% |
| Other investments and federal funds sold | 113,752 | 127 | 0.44% | 78,550 | 101 | 0.51% |
| Total interest-earning assets | 604,078 | 5,590 | 3.70% | 578,592 | 5,942 | 4.11% |
| Non-interest-earning assets | 17,546 | 31,753 | ||||
| Total assets | $ 621,624 | $ 610,345 | ||||
| Interest-Bearing Liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing checking | $ 27,346 | $ 11 | 0.16% | $ 25,556 | $ 10 | 0.16% |
| Savings and clubs | 96,844 | 65 | 0.27% | 96,566 | 64 | 0.26% |
| Money market | 141,376 | 175 | 0.49% | 115,777 | 134 | 0.46% |
| Certificates of deposit | 198,891 | 461 | 0.92% | 189,380 | 471 | 0.99% |
| Mortgagors deposits | 1,719 | 7 | 1.62% | 1,853 | 8 | 1.71% |
| Total deposits | 466,176 | 719 | 0.61% | 429,132 | 687 | 0.64% |
| Borrowed money | 43,610 | 273 | 2.48% | 61,870 | 290 | 1.86% |
| Total interest-bearing liabilities | 509,786 | 992 | 0.77% | 491,002 | 977 | 0.79% |
| Non-interest-bearing liabilities: | ||||||
| Demand | 51,667 | 55,248 | ||||
| Other liabilities | 6,996 | 7,779 | ||||
| Total liabilities | 568,449 | 554,029 | ||||
| Non-controlling interest | (354) | (165) | ||||
| Stockholders' equity | 53,529 | 56,481 | ||||
| Total liabilities and equity | $ 621,624 | $ 610,345 | ||||
| Net interest income | $ 4,598 | $ 4,965 | ||||
| Average interest rate spread | 2.93% | 3.32% | ||||
| Net interest margin | 3.04% | 3.43% | ||||
| (1) Includes nonaccrual loans | ||||||
| (2) Includes FHLB-NY stock | ||||||
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||||||
| CONSOLIDATED AVERAGE BALANCES | ||||||
| For the Six Months Ended September 30, | ||||||
| 2014 | 2013 | |||||
| Average | Average | Average | Average | |||
| $ in thousands | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost |
| Interest-Earning Assets: | ||||||
| Loans (1) | $ 395,476 | $ 10,162 | 5.14% | $ 368,657 | $ 10,178 | 5.52% |
| Mortgage-backed securities | 36,429 | 398 | 2.19% | 58,098 | 548 | 1.89% |
| Investment securities | 52,965 | 498 | 1.88% | 61,894 | 540 | 1.74% |
| Restricted cash deposit | 6,354 | 1 | 0.03% | 7,903 | 1 | 0.03% |
| Equity securities (2) | 1,870 | 42 | 4.48% | 2,339 | 46 | 3.92% |
| Other investments and federal funds sold | 115,007 | 247 | 0.43% | 76,328 | 198 | 0.52% |
| Total interest-earning assets | 608,101 | 11,348 | 3.73% | 575,219 | 11,511 | 4.00% |
| Non-interest-earning assets | 14,108 | 30,829 | ||||
| Total assets | $ 622,209 | $ 606,048 | ||||
| Interest-Bearing Liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing checking | $ 25,601 | $ 21 | 0.16% | $ 25,987 | $ 21 | 0.16% |
| Savings and clubs | 97,415 | 130 | 0.27% | 97,278 | 129 | 0.26% |
| Money market | 137,328 | 332 | 0.48% | 115,112 | 265 | 0.46% |
| Certificates of deposit | 201,995 | 942 | 0.93% | 191,309 | 951 | 0.99% |
| Mortgagors deposits | 1,997 | 16 | 1.60% | 2,049 | 18 | 1.75% |
| Total deposits | 464,336 | 1,441 | 0.62% | 431,735 | 1,384 | 0.64% |
| Borrowed money | 43,611 | 543 | 2.48% | 53,482 | 603 | 2.25% |
| Total interest-bearing liabilities | 507,947 | 1,984 | 0.78% | 485,217 | 1,987 | 0.82% |
| Non-interest-bearing liabilities: | ||||||
| Demand | 53,473 | 55,856 | ||||
| Other liabilities | 7,672 | 8,237 | ||||
| Total liabilities | 569,092 | 549,310 | ||||
| Non-controlling interest | (361) | (210) | ||||
| Stockholders' equity | 53,478 | 56,948 | ||||
| Total liabilities and equity | $ 622,209 | $ 606,048 | ||||
| Net interest income | $ 9,364 | $ 9,524 | ||||
| Average interest rate spread | 2.95% | 3.18% | ||||
| Net interest margin | 3.08% | 3.31% | ||||
| (1) Includes nonaccrual loans | ||||||
| (2) Includes FHLB-NY stock | ||||||
| CARVER BANCORP, INC. AND SUBSIDIARIES | ||||
| CONSOLIDATED SELECTED KEY RATIOS | ||||
| Three Months Ended | Six Months Ended | |||
| September 30, | September 30, | |||
| Selected Statistical Data: | 2014 | 2013 | 2014 | 2013 |
| Return on average assets (1) | 0.14% | 0.22% | 0.12% | 0.25% |
| Return on average stockholders' equity (2) (10) | 1.49% | 2.39% | 1.34% | 2.62% |
| Net interest margin (3) | 3.04% | 3.43% | 3.08% | 3.31% |
| Interest rate spread (4) | 2.93% | 3.32% | 2.95% | 3.18% |
| Efficiency ratio (5)(10) | 109.63% | 100.87% | 109.65% | 89.80% |
| Operating expenses to average assets (6) | 4.35% | 4.32% | 4.27% | 3.92% |
| Average stockholders' equity to average assets (7) | 9.09% | 9.37% | 9.11% | 9.50% |
| Average interest-earning assets to average interest-bearing liabilities | 1.18 x | 1.18 x | 1.20 x | 1.19 x |
| Basic earnings per share | $ 0.06 | $ 0.09 | $ 0.10 | $ 0.20 |
| Average shares outstanding | 3,696,370 | 3,696,179 | 3,696,297 | 3,696,072 |
| September 30, | ||||
| 2014 | 2013 | |||
| Capital Ratios: | ||||
| Tier 1 leverage ratio (8) | 10.42% | 10.53% | ||
| Tier 1 risk-based capital ratio (8) | 16.98% | 17.42% | ||
| Total risk-based capital ratio (8) | 19.23% | 19.98% | ||
| Asset Quality Ratios: | ||||
| Non-performing assets to total assets (9) | 2.30% | 4.25% | ||
| Non-performing loans to total loans receivable (9) | 1.97% | 4.55% | ||
| Allowance for loan losses to total loans receivable | 1.61% | 2.36% | ||
| Allowance for loan losses to non-performing loans | 81.59% | 51.81% | ||
| (1) Net income (loss), annualized, divided by average total assets. | ||||
| (2) Net income (loss), annualized, divided by average total stockholders' equity (excludes accumulated other comprehensive loss). | ||||
| (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 expense divided by sum of net interest income and non-interest income. | ||||
| (6) Non-interest expense, annualized, divided by average total assets. | ||||
| (7) Average stockholders' equity divided by average assets for the period ended. | ||||
| (8) These ratios reflect the consolidated bank only. | ||||
| (9) Non-performing assets consist of nonaccrual loans and real estate owned. | ||||
| (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 and the return on average stockholders' equity. Management believes these non-GAAP financial measures provide 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. The comparable GAAP return on average stockholders' equity is 1.57% and 1.49% for the three months ended September 30, 2014 and 2013, respectively, and 1.42% and 2.64% for the six months ended September 30, 2014 and 2013, respectively. Further, the efficiency ratio is used by management in its assessment of financial performance, including non-interest expense control. | ||||