NEW YORK, Feb. 13, 2009 (GLOBE NEWSWIRE) -- Carver Bancorp, Inc. (the "Company") (Nasdaq:CARV), the holding company for Carver Federal Savings Bank (the "Bank"), today announced its results of operations for the three- and nine-month periods ended December 31, 2008, the third quarter of the fiscal year ended March 31, 2009 ("fiscal 2009").
The Company reported a net loss of $6.5 million and loss per share of ($2.63) for the third quarter of fiscal 2009 compared to net income of $1.6 million and diluted earnings per share of $0.62 for the prior year period. For the nine month period ended December 31, 2008, the Company reported a net loss of $5.2 million, or a loss per share of ($2.10), compared to net income of $3.5 million, or $1.36 per diluted share, for the prior year period. The net loss for the three and nine months ended December 31, 2008 primarily relates to a non-cash goodwill impairment charge of $6.4 million.
Deborah C. Wright, the Company's Chairman and CEO, stated: "In recent months a 'perfect storm' has roiled our industry nationwide, including a declining economy, tightening net interest margins, and credit deterioration. All of these broad forces have negatively impacted the market values of banking institutions. Carver's third quarter results were significantly impacted by these trends."
"Carver incurred a non-cash charge of $6.4 million reflecting impairment to goodwill attributable to the 2006 acquisition of Community Capital Bank, leading us to our first quarterly and fiscal year loss since 2001. The charge follows a required goodwill impairment assessment, conducted with the assistance of an independent valuation firm, which concluded that the carrying amount of goodwill exceeded its implied fair value. At a time when managers of most financial institutions are taking a hard look at their balance sheets, it is important that Carver recognize changes in market valuations in our industry and move forward from a baseline that acknowledges the reality of today's economy. While we are extremely disappointed to experience any loss, our capital structure remains very strong as we and our industry continue to manage through unprecedented headwinds from the economy. While this charge flows through the Company's income statement, it is a non-cash item which will not impact Carver's liquidity or capital ratios. Carver remains well capitalized and is positioned to continue prudent growth during this period.
"With construction lending representing 23% of our loan portfolio, reductions in LIBOR and Prime indices of 460 and 400 basis points since December 31, 2007, respectively, reduced interest income more than 15% year over year. While deposit rates have also declined over both periods, competitive pressures have prevented commensurate reductions. Nevertheless we were pleased that our funding strategy generated a 3.4% improvement in net interest income before provision for loan losses this quarter.
"On the credit front, non-performing assets decreased from 3.46% of total assets at September 30, 2008 to 1.81% at December 31, 2008, as we substantially addressed matured credits and continued to work through delinquencies. However we increased the provision for loan losses 94% year over year to $431,000, to reflect higher risk in New York City's current real estate and business markets and the increase in Carver's non-performing assets over the past year.
"Finally, this quarter's 10-Q details the events leading to a restatement of our fiscal year 2007 results, due to reconciling items identified by new procedures implemented in preparation for compliance with Section 404 of the Sarbanes-Oxley Act. This change has resulted in fiscal 2007 earnings per share being adjusted downward to $0.81 from $1.00. Of course, our management team is disappointed by this development and has taken the appropriate corrective steps to solidify financial controls."
Carver also announced that on February 12, 2009, the Company's Board of Directors declared a cash dividend on its common stock of ten cents ($0.10) per share for the third quarter of fiscal 2009. The Company noted that this action reflects the Board of Directors' continued confidence in Carver's long-term growth and earnings outlook. The dividend will be paid on March 13, 2009 to stockholders of record at the close of business on February 27, 2009.
Income Statement Highlights
Third Quarter Results
The Company reported a net loss of $6.5 million or a per share loss of ($2.63) for the third quarter of fiscal 2009 compared to net income of $1.6 million and diluted earnings per share of $0.62 for the prior year period. The net loss of $6.5 million for the third quarter of fiscal 2009 is the result of an increase in non-interest expense of $6.1 million, primarily due to the non-cash goodwill impairment charge, as well as an increase in the provision for loan losses of $0.2 million, offset by an increase in net interest income of $0.1 million and an increase in the income tax benefit of $0.4 million.
Interest income decreased by $1.9 million, or 15.4%, to $10.4 million for the third quarter of fiscal 2009 compared to $12.3 million for the prior year period. The decrease in interest income was primarily the result of decreases in interest income on loans of $1.6 million and interest income on investment securities of $0.3 million. This decrease reflects a decrease in the yield on interest-earning assets of 108 basis points to 5.87% for the third quarter of fiscal 2009 compared to 6.95% for the prior year period, which is primarily the result of LIBOR and Prime based construction loans repricing at lower rates. The decrease in yield on interest earning assets was primarily the result of a 112 basis point decrease in the yield on loans as a result of LIBOR and Prime based construction loans repricing at lower rates. The decrease in interest income was also the result of a decline in the average balance of investment securities from $21.4 million in the prior year period to $6.4 million in the third quarter of fiscal 2009, as securities matured.
Interest expense decreased by $2.0 million, or 33.2%, to $4.0 million for the third quarter of fiscal 2009 compared to $6.0 million for the prior year period. The decrease in interest expense was primarily the result of decreases in interest expense on deposits of $2.1 million. The decrease in interest expense primarily reflects a 119 basis point decrease in the average cost of interest-bearing liabilities to 2.43% for the third quarter of fiscal 2009 compared to 3.62% for the prior year period, and a decrease in the average balance of interest-bearing liabilities of $3.6 million, or 0.54%, to $653.4 million compared to $657.0 million for the prior year period. The decrease in the yield on interest bearing liabilities was primarily the result of our decision not to renew higher relative cost certificates of deposits, which were replaced by short-term advances from the Federal Home Loan Bank of New York ("FHLB-NY").
The Company recorded a $0.4 million provision for loan losses for the third quarter of fiscal 2009 compared to a $0.2 million provision for the prior year period. The increase reflects deterioration in the housing market and the New York City economy. The Bank's future level of non-performing loans will be influenced by economic conditions, including the impact of those conditions on the Bank's customers, interest rates and other factors existing at the time.
Non-interest income decreased $2.0 million, or 62.4%, to $1.2 million for the third quarter of fiscal 2009 compared to $3.2 million for the prior year period. The decrease was due primarily to a reduction of $1.6 million in other income and a $0.2 million reduction in the value of mortgage servicing rights, reported as gain (loss) on loans. The decrease in other income is primarily related to a $1.7 million fee generated by a New Markets Tax Credit ("NMTC") transaction in the prior year period that did not recur.
Non-interest expense increased $6.1 million, or 77.1%, to $14.1 million for the third quarter of fiscal 2009 compared to $8.0 million for the prior year period. The increase was primarily due to a $6.4 million non-cash goodwill impairment charge as well as increases in occupancy expense of $0.3 million and FDIC insurance of $0.2 million, offset by decreases in employee compensation and benefits of $0.4 million and other expenses of $0.3 million. The reduction in employee compensation and benefits expense was the result of a reduction in the number of employees and resulting cost of employee benefit plans during the third quarter of fiscal 2009.
The income tax benefit was $0.6 million for the third quarter of fiscal 2009 compared to a tax benefit of $0.3 million for the prior year period. The tax benefit for the third quarter of fiscal 2009 primarily reflects a tax benefit of $0.5 million for the NMTC transaction. The Company expects to receive additional NMTC tax benefits of approximately $10.6 million from its $40.0 million investment through the period ending March 31, 2014.
Nine Month Results
Carver's net loss for the nine month period ended December 31, 2008 was $5.2 million or a per share loss of ($2.10) compared to net income of $3.5 million for the prior year period and diluted earnings per share of $1.36 for the prior year period. The net loss of $5.2 million for the nine months ended December 31, 2008 was the result of an increase in non interest expense of $7.1 million, primarily due to the non-cash goodwill impairment charge as well as a decrease in non-interest income of $1.3 million and an increase in provision for loan losses of $0.5 million, offset by an increase in income tax benefit of $1.1 million.
For the nine month period ended December 31, 2008, interest income decreased $4.3 million, or 11.8%, to $32.1 million, compared to $36.4 million for the prior year period. The decrease in interest income was primarily the result of decreases in interest income on loans of $3.5 million and interest income on investment securities of $1.0 million, offset by an increase in interest income on mortgage-backed securities of $0.2 million. The decrease in interest income reflects a decrease in the yield on interest-earning assets of 75 basis points to 6.16% for the nine months ended December 31, 2008 compared to 6.91% for the prior year period. The decrease in yield on interest earning assets was primarily the result of an 80 basis point decrease in the yield on loans as a result of LIBOR and Prime rate based construction loans repricing at lower rates. The decrease in interest income was also the result of the decline in the average balance of investment securities from $27.0 million in the prior year period to $5.7 million for the nine month period ended December 31, 2008 due to securities that matured, offset by a $7.0 million increase in mortgage-backed securities from $37.7 million to $44.7 million.
For the nine month period ended December 31, 2008, interest expense decreased $3.7 million, or 22.0%, to $13.2 million, compared to $16.9 million for the prior year period. The decrease in interest expense resulted primarily from an 81 basis point decrease in the average cost of interest-bearing liabilities to 2.68%, compared to 3.49% for the prior year period, offset partially by growth in the average balance of interest-bearing liabilities of $10.1 million, or 1.6%, to $654.8 million compared to $644.7 million for the prior year period.
For the nine month period ended December 31, 2008, the Bank provided a $0.8 million provision for loan losses compared to $0.2 million for the prior year period. The increase reflects deterioration in the housing market and the New York City economy. The Bank's future level of non-performing loans will be influenced by economic conditions, including the impact of those conditions on the Bank's customers, interest rates and other factors existing at the time.
For the nine month period ended December 31, 2008, non-interest income decreased $1.3 million to $4.5 million compared to $5.8 million for the prior year period. The decrease is primarily related to other income decreasing $1 million due to the $1.7 million fee generated by a non-recurring NMTC transaction in the prior year period.
During the nine month period ended December 31, 2008, non-interest expense increased $7.1 million, or 32.7%, to $28.7 million compared to $21.7 million for the prior year period. The increase in non-interest expense was primarily due to the $6.4 million non-cash goodwill impairment charge as well as increases of $0.6 million in occupancy and equipment expense, $0.3 in employee compensation and benefits, $0.3 million in FDIC insurance and $0.2 million in equipment expense, offset by a decrease in other expenses of $0.6 million. The reduction in other expenses was primarily related to a reduction of consulting expenses during the nine months ended December 31, 2008.
For the nine month period ended December 31, 2008, the Bank recorded a tax benefit of $1.3 million compared to income tax benefit of $0.2 million for the prior year period. The tax benefit for the nine month period ended December 31, 2008 reflects a tax benefit of $1.5 million for the NMTC investment transaction offset by tax expense of $0.2 million related to income before income taxes excluding the effect of the non-cash goodwill impairment charge of $6.4 million.
Financial Condition Highlights
At December 31, 2008 total assets decreased $6.2 million, or 0.8%, to $789.9 million compared to $796.1 million at March 31, 2008, primarily as a result of decreases in cash and cash equivalents of $5.5 million, non-cash goodwill impairment charge of $6.4 million and other assets of $4.0 million, partially offset by increases in total net loans receivable of $3.2 million and investment securities of $7.4 million.
Cash and cash equivalents decreased $5.5 million, or 20%, to $21.9 million at December 31, 2008 compared to $27.4 million at March 31, 2008, primarily due to a $10.5 million decrease in federal funds sold, which were redeployed into higher yielding securities, offset by a $5.0 million increase in cash and due from banks.
Total securities increased $7.4 million, or 19.5%, to $45.6 million at December 31, 2008 compared to $38.2 million at March 31, 2008, reflecting an increase of $8.6 million in available-for-sale securities and a $1.1 million decrease in held-to-maturity securities. Available-for-sale securities increased $8.6 million, or 41.1%, to $29.4 million at December 31, 2008 compared to $20.9 million at March 31, 2008, primarily due to purchases of mortgage-backed securities of $12.4 million. Held to maturity securities decreased $1.1 million, or 6.6%, to $16.2 million at December 31, 2008 compared to $17.3 million at March 31, 2008, primarily due to principal repayments and maturities of securities.
Total loans receivable, net including loans held-for-sale, increased $1.1 million, or 0.2%, to $652.7 million at December 31, 2008 compared to $651.7 million at March 31, 2008. The increase was primarily the result of an increase in commercial real estate loans of $26.7 million and an increase in commercial business loans of $3.4 million, offset by decreases in one- to four- family loans of $16.2 million and construction loans of $11.4 million.
Other assets decreased $4.0 million, or 9.5%, to $37.5 million at December 31, 2008, compared to $41.4 million at March 31, 2008, primarily due to receipt of $8.2 million in connection with the sale of certain available for sale investments sold in the prior year period and settled during this period.
Total liabilities decreased $0.4 million, or 0.1%, to $722.7 million at December 31, 2008 compared to $723.1 million at March 31, 2008. The decrease in total liabilities was primarily the result of a $33.1 million reduction in deposits, offset by an increase of $32.9 million in advances from the FHLB-NY and other borrowed money. The Bank made a strategic decision to allow higher cost certificates of deposit to run off and replaced them with lower cost borrowings.
Deposits decreased $33.1 million, or 5.1%, to $621.5 million at December 31, 2008 compared to $654.7 million at March 31, 2008. The decrease in deposit balances was primarily the result of decreases in certificates of deposit of $23.5 million, savings accounts of $8.8 million, money market accounts of $0.3 million and demand accounts of $1.2 million, which were partially offset by an increase of $1.9 million in NOW accounts.
Advances from the FHLB-NY and other borrowed money increased $32.9 million, or 56.1%, to $91.5 million at December 31, 2008 compared to $58.6 million at March 31, 2008. The increase in advances and other borrowed money was primarily the result of an increase of $32.9 million in FHLB-NY advances. At December 31, 2008, based on available collateral held at the FHLB-NY, the Bank had the ability to borrow from the FHLB-NY an additional $36.4 million on a secured basis.
Total stockholders' equity decreased $5.8 million, or 10.9%, to $48.1 million at December 31, 2008 compared to $53.9 million at March 31, 2008. The decrease in total stockholders' equity was primarily attributable to a net loss for the nine month period ended December 31, 2008 totaling $5.2 million, dividends paid of $0.7 million, partially offset by an increase of $0.1 million of accumulated other comprehensive income. The Bank's capital levels meet regulatory requirements of a well-capitalized financial institution.
Stock Repurchase Program
During the third quarter of fiscal 2009, the Company purchased no additional shares of common stock under its stock repurchase program. As of December 31, 2008, the Company has purchased a total of 176,174 shares at an average price per share of $15.72. The number of shares yet to be repurchased is 55,461 shares. However, during the Company's participation in the Troubled Asset Relief Program Capital Purchase Program ("TARP Program"), the U.S. Treasury's prior approval is required to make further repurchases.
Asset Quality
At December 31, 2008, non-performing assets totaled $14.3 million, or 1.81% of total assets compared to $4.0 million or 0.50% of total assets at March 31, 2008.
At December 31, 2008, the Bank's allowance for loan losses was $5.5 million which represents a ratio of the allowance for loan losses to non-performing loans of 40.3% compared to 170.9% at March 31, 2008. The ratio of the allowance for loan losses to total loans was 0.84% at December 31, 2008 compared to 0.74% at March 31, 2008.
For additional information, please review our Form 10-Q for the quarterly period ended December 31, 2008.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, operates nine full-service branches in the New York City boroughs of Brooklyn, Queens and Manhattan. 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)
(Unaudited)
Dec. 31, March 31,
2008 2008
--------- ---------
(As Restated)
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 20,954 $ 15,920
Federal funds sold -- 10,500
Interest earning deposits 947 948
--------- ---------
Total cash and cash equivalents 21,901 27,368
Securities:
Available-for-sale, at fair value
(including pledged as collateral
of $29,397 and $20,621 at
December 31 and March 31, 2008,
respectively) 29,442 20,865
Held-to-maturity, at amortized
cost (including pledged as
collateral of $15,525 and
$16,643 at December 31 and
March 31, 2008, respectively;
fair value of $15,912 and
$17,167 at December 31 and
March 31, 2008, respectively) 16,169 17,307
--------- ---------
Total securities 45,611 38,172
Loans held-for-sale 21,563 23,767
Loans receivable:
Real estate mortgage loans 579,309 578,957
Commercial business loans 55,554 52,109
Consumer loans 1,793 1,728
Allowance for loan losses (5,512) (4,878)
--------- ---------
Total loans receivable, net 631,144 627,916
Office properties and equipment, net 15,621 15,780
Federal Home Loan Bank of New York
stock, at cost 3,117 1,625
Bank owned life insurance 9,400 9,141
Accrued interest receivable 3,645 4,063
Goodwill -- 6,370
Core deposit intangibles, net 418 532
Other assets 37,484 41,437
--------- ---------
Total assets $ 789,904 $ 796,171
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 621,534 $ 654,663
Advances from the FHLB-New York
and other borrowed money 91,524 58,625
Other liabilities 9,561 9,835
--------- ---------
Total liabilities 722,619 723,123
Minority interest 19,150 19,150
Stockholders' equity:
Common stock (par value $0.01 per
share: 10,000,000 shares
authorized; 2,524,691 shares
issued; 2,475,037 and 2,481,706
shares outstanding at December 31
and March 31, 2008, respectively) 25 25
Additional paid-in capital 24,188 24,113
Retained earnings 24,085 30,005
Treasury stock, at cost (49,654
and 42,985 shares at December 31
and March 31, 2008, respectively) (760) (670)
Accumulated other comprehensive income 597 425
--------- ---------
Total stockholders' equity 48,135 53,898
--------- ---------
Total liabilities and stockholders' equity $ 789,904 $ 796,171
========= =========
See accompanying notes to consolidated financial statements
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
2008 2007 2008 2007
--------- --------- --------- ---------
Interest Income:
Loans $ 9,800 $ 11,403 $ 30,093 $ 33,579
Mortgage-backed
securities 578 518 1,742 1,494
Investment securities 39 328 209 1,183
Federal funds sold 4 68 44 109
--------- --------- --------- ---------
Total interest income 10,421 12,317 32,088 36,365
Interest expense:
Deposits 3,016 5,069 10,516 13,970
Advances and other
borrowed money 991 932 2,699 2,962
--------- --------- --------- ---------
Total interest
expense 4,007 6,001 13,215 16,932
--------- --------- --------- ---------
Net interest income
before provision for
loan losses 6,414 6,316 18,873 19,433
Provision for loan losses 431 222 770 222
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 5,983 6,094 18,103 19,211
Non-interest income:
Depository fees and
charges 732 666 2,114 1,981
Loan fees and service
charges 264 327 1,070 1,218
Write-down of loans
held for sale -- -- (16) --
Gain on sale of
securities -- 102 -- 181
Gain (loss) on loans (208) 75 38 103
Other 407 2,008 1,309 2,284
--------- --------- --------- ---------
Total non-interest
income
1,195 3,178 4,515 5,767
Non-interest expense:
Employee compensation
and benefits 2,968 3,413 9,998 9,731
Net occupancy expense 1,223 908 3,142 2,673
Equipment, net 794 827 2,103 1,931
Federal deposit
insurance premiums 233 18 389 56
Other 2,515 2,797 6,740 7,271
Goodwill Impairment 6,370 -- 6,370 --
--------- --------- --------- ---------
Total non-interest
expense 14,103 7,963 28,742 21,662
Income (loss) before
income taxes (6,925) 1,309 (6,124) 3,316
Income tax benefit (550) (268) (1,293) (168)
Minority Interest, net of
income taxes 124 -- 361 --
--------- --------- --------- ---------
Net income (loss) $ (6,499) $ 1,577 $ (5,192) $ 3,484
========= ========= ========= =========
Earnings (loss) per
common share:
Basic $ (2.63) $ 0.63 $ (2.10) $ 1.40
========= ========= ========= =========
Diluted $ (2.63) $ 0.62 $ (2.10) $ 1.36
========= ========= ========= =========
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED SELECTED KEY RATIOS
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------- --------------------
Selected Statistical Data: 2008 2007 2008 2007
--------- --------- --------- ---------
Return on average
assets (1)(11) NM 0.82% NM 0.61%
Return on average
equity (2)(11) NM 12.27% NM 8.36%
Net interest margin (3) 3.61% 3.59% 3.62% 3.71%
Interest rate spread (4) 3.44% 3.33% 3.48% 3.42%
Efficiency ratio (5) 101.61% 83.87% 95.66% 85.96%
Operating expenses to
average assets (6) 6.36% 4.14% 4.05% 3.78%
Average equity to
average assets (7) 6.98% 6.68% 6.90% 7.27%
Average interest-earning
assets to average
interest-bearing
liabilities 1.09x 1.08x 1.06x 1.09x
Net income per
share - basic $ (2.63) $ 0.63 $ (2.10) $ 1.40
Net income per
share - diluted $ (2.63) $ 0.62 $ (2.10) $ 1.36
Average shares
outstanding - basic 2,470,082 2,489,101 2,472,305 2,494,801
Average shares
outstanding - diluted 2,470,082 2,549,924 2,472,305 2,564,926
Cash dividends $ 0.10 $ 0.10 $ 0.20 $ 0.29
Dividend payout
ratio (8)(11) NM 15.85% NM 20.75%
Capital Ratios:
---------------
Tier I leverage
capital ratio (9) 7.71% 7.77% 7.71% 7.77%
Tier I risk-based
capital ratio (9) 9.54% 9.57% 9.54% 9.57%
Total risk-based
capital ratio (9) 10.40% 10.45% 10.40% 10.45%
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Asset Quality Ratios:
---------------------
Non performing assets
to total assets (10) 1.81% 0.52% 1.81% 0.52%
Non performing loans
to total loans
receivable (10) 2.08% 0.61% 2.08% 0.61%
Allowance for loan
losses to total
loans receivable 0.84% 0.84% 0.84% 0.84%
Allowance for loan
losses to
non-performing loans 40.19% 137.51% 40.19% 137.51%
(1) Net income, annualized, divided by average total assets.
(2) Net income, annualized, divided by average total equity.
(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 excluding Goodwill impairment divided by
sum of net interest income plus non-interest income.
(6) Non-interest expenses excluding Goodwill impairment, annualized,
divided by average total assets.
(7) Average equity divided by average assets for the period ended.
(8) Dividends paid on common stock during the period divided by
net income for the period.
(9) These ratios reflect consolidated bank only.
(10) Non performing assets consist of non-accrual loans, loans
accruing 90 days or more past due and real estate owned.
(11) Due to net loss ratios are not meaningful
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(Dollars in thousands)
(Unaudited)
Three months ended December 31,
---------------------------------------------------
2008 2007
------------------------ --------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------- -------- ------- -------- -------- -------
Interest Earning (Dollars in thousands)
Assets:
Loans(1) $655,324 $ 9,800 5.98% $642,600 $ 11,403 7.10%
Mortgage-backed
securities 44,636 578 5.18% 38,317 518 5.41%
Investment
securities(2) 6,382 39 2.42% 21,439 328 6.07%
Federal funds sold 4,025 4 0.39% 6,020 68 4.48%
-------- -------- ------- -------- -------- -------
Total interest
earning assets 710,367 10,421 5.87% 708,376 12,317 6.95%
Non-interest
earning assets 76,436 61,406
-------- --------
Total assets $786,803 $769,782
======== ========
Interest Bearing
Liabilities:
Deposits:
Now Accounts $ 25,820 $ 13 0.20% $ 26,003 58 0.88%
Savings and
clubs 118,456 145 0.49% 129,669 282 0.86%
Money market
accounts 44,424 218 1.95% 42,096 352 3.32%
Certificates of
deposit 359,731 2,627 2.90% 385,035 4,364 4.50%
Mortgagor's
deposit 2,965 14 1.87% 2,745 13 1.88%
-------- -------- ------- -------- -------- -------
Total deposits 551,396 3,017 2.17% 585,548 5,069 3.43%
Borrowed money 101,996 991 3.85% 71,416 932 5.18%
-------- -------- ------- -------- -------- -------
Total interest
bearing
liabilities 653,392 4,008 2.43% 656,964 6,001 3.62%
Non-interest-
bearing
liabilities:
Demand 52,442 50,117
Other
Liabilities 6,869 11,276
-------- --------
Total
liabilities 712,703 718,357
Minority Interest 19,150 --
Stockholders'
equity 54,950 51,425
-------- --------
Total liabilities
and stockholders'
equity $786,803 $769,782
======== ========
Net interest -------- --------
income $ 6,413 $ 6,316
======== ========
Average interest
rate spread 3.44% 3.33%
======= =======
Net interest margin 3.61% 3.57%
======= =======
(1) Includes non-accrual loans
(2) Includes FHLB-NY stock
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(Dollars in thousands)
(Unaudited)
Nine months ended December 31,
---------------------------------------------------
2008 2007
------------------------ --------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------- -------- ------- -------- -------- -------
Interest Earning (Dollars in thousands)
Assets:
Loans(1) $640,044 $ 30,093 6.27% $633,335 $ 33,579 7.07%
Mortgage-backed
securities 44,705 1,742 5.20% 37,749 1,494 5.28%
Investment
securities(2) 5,747 209 4.76% 27,023 1,183 5.81%
Federal funds sold 4,060 44 1.44% 3,049 109 4.74%
-------- -------- ------- -------- -------- -------
Total interest
earning assets 694,556 32,088 6.16% 701,156 36,365 6.91%
Non-interest
earning assets 94,338 63,448
-------- --------
Total assets $788,894 $764,604
======== ========
Interest Bearing
Liabilities:
Deposits:
Now Accounts $ 24,460 $ 49 0.27% $ 25,303 116 0.61%
Savings and
clubs 121,904 474 0.52% 133,296 812 0.81%
Money market
accounts 45,125 736 2.16% 44,822 852 2.52%
Certificates of
deposit 373,143 9,218 3.28% 362,265 12,157 4.45%
Mortgagor's
deposit 2,887 38 1.75% 2,786 33 1.57%
-------- -------- ------- -------- -------- -------
Total deposits 567,519 10,515 2.46% 568,472 13,970 3.26%
Borrowed money 87,261 2,699 4.11% 76,252 2,962 5.16%
-------- -------- ------- -------- -------- -------
Total interest
bearing
liabilities 654,780 13,214 2.68% 644,724 16,932 3.49%
Non-interest-
bearing
liabilities:
Demand 52,957 52,574
Other Liabilities 7,548 11,753
-------- --------
Total liabilities 715,285 709,051
Minority Interest 19,150 --
Stockholders'
equity 54,459 55,553
-------- --------
Total liabilities
and stockholders'
equity $788,894 $764,604
======== ========
Net interest -------- --------
income $ 18,874 $ 19,433
======== ========
Average interest
rate spread 3.48% 3.42%
======= =======
Net interest margin 3.62% 3.70%
======= =======
(1) Includes non-accrual loans
(2) Includes FHLB-NY stock