-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VH0ucs/yCTDzfUHr9ZSjjaOarp7VDiVsppnxGh6Zvj0dqetz1cuKaJOHtS1TFC0V 0N8xnjwwksuOJwOx6V2bXw== 0000882377-05-000197.txt : 20050128 0000882377-05-000197.hdr.sgml : 20050128 20050128153514 ACCESSION NUMBER: 0000882377-05-000197 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050127 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050128 DATE AS OF CHANGE: 20050128 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARVER BANCORP INC CENTRAL INDEX KEY: 0001016178 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 133904174 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13007 FILM NUMBER: 05558085 BUSINESS ADDRESS: STREET 1: 75 W 125TH ST CITY: NEW YORK STATE: NY ZIP: 10027-4512 BUSINESS PHONE: 2128764747 MAIL ADDRESS: STREET 1: 75 W 125TH ST CITY: NEW YORK STATE: NY ZIP: 10027-4512 8-K 1 d304000.txt CARVER BANCORP INC ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): January 27, 2005 ------------------------ CARVER BANCORP, INC. (Exact name of registrant as specified in its charter) ------------------------
DELAWARE 0-21487 13-3904147 (STATE OR OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION INCORPORATION ) NO.)
75 WEST 125TH STREET, NEW YORK, NY 10027-4512 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) Registrant's telephone number, including area code: (212) 876-4747 NOT APPLICABLE (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEMS 1, 2.01 AND 2.03 THROUGH 8. NOT APPLICABLE. ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On January 27, 2005, Carver Bancorp, Inc. issued a press release reporting financial results for the third quarter of the fiscal year ending March 31, 2005. The full text of the press release is included in this Form 8-K as Exhibit 99.1. The information provided pursuant to this Form 8-K shall not be deemed incorporated by reference by any general statement incorporating by reference this Form 8-K into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and shall not otherwise be deemed filed under such Acts. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (a) - (b) Not applicable. (c) Exhibits The following Exhibits are filed as part of this report. Exhibit 99.1 Press release dated January 27, 2005, which, among other things, highlights the Company's financial results for the quarter ended December 31, 2004. -2- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CARVER BANCORP, INC. By: /s/ Deborah C. Wright --------------------- Deborah C. Wright President & CEO Dated: January 28, 2005 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION -------------- ----------- 99.1 Press release dated January 27, 2005, which, among other things, highlights the Company's financial results for the quarter ended December 31, 2004. Exhibit 99.1 EX-99.1 2 d303839.txt PRESS RELEASE [LOGO OF CARVER BANCORP, INC.] Contact: David Lilly / Kimberly Kriger William Gray Kekst and Company Carver Bancorp, Inc. (212) 521-4800 (212) 360-8840 CARVER BANCORP, INC. REPORTS THIRD QUARTER RESULTS ANNOUNCES THIRD QUARTER EPS OF $0.36, CONTINUES SUCCESSFUL FRANCHISE EXPANSION NEW YORK, NEW YORK, JANUARY 27, 2005 - Carver Bancorp, Inc. (the "Company" or "Carver") (AMEX: CNY), the holding company for Carver Federal Savings Bank (the "Bank"), today announced its results of operations for the three-month period ended December 31, 2004, the third quarter of the fiscal year ending March 31, 2005 ("fiscal 2005"). The Company reported diluted earnings per share of $0.36 for the quarter ended December 31, 2004 compared to $0.47 diluted earnings per share for the same period last year. Net income available to common stockholders decreased $283,000, or 23.8%, to $904,000 compared to $1.2 million for the same period last year. Declines in non-interest income and higher operating expenses offset increases in net interest income. Deborah C. Wright, President and CEO of Carver, stated: "Carver's third quarter results reflect the momentum building in our lending and retail departments, which produced gains in total loans receivable as well as deposits. While we are pleased with the resulting increase in net interest income year over year, this progress was not enough to eliminate the impact of margin compression experienced throughout our industry, as the U.S. Treasury yield curve continued to flatten. In addition, non-interest income was negatively impacted by the decline in mortgage refinance activity, significantly reducing income from mortgage prepayment penalties. As expected, we also saw near-term increases in non-interest expense related to the successful launch of new branches and 24/7 ATM centers." Ms. Wright continued: "In continuing to execute on our strategy to expand Carver's franchise locally, we recently opened our eighth full service branch in the new Pathmark supermarket at 145th Street and Frederick Douglass Boulevard in northern Harlem as well as our fourth state-of-the-art 24/7 ATM center at 116th Street and Fifth Avenue in southern Harlem. These delivery channels follow the successful openings of our Jamaica Center branch in Queens, Atlantic Terminal branch in Brooklyn and three 24/7 ATM centers, dramatically expanding our footprint over the last 18 months. Although the significant financial investment required to expand has negatively impacted non-interest expense in the near term, we believe this strategy is critical if Carver is to meet the competitive challenge and will increase the Company's franchise value as income is enhanced by a growing customer base." Based on their confidence in Carver's future prospects, on January 25, 2005 the Board of Directors once again declared a $0.07 per share dividend for the third quarter payable on February 24, 2005 to holders of record at the close of business on February 10, 2005. As previously announced, on October 20, 2004, the Company reported that the holders of all 40,000 outstanding shares of its Series A Convertible Preferred Stock and all 60,000 outstanding shares of its Series B Convertible Preferred Stock elected to convert their preferred shares into 208,333 shares of the Company's common stock. INCOME STATEMENT HIGHLIGHTS Quarterly Results - ----------------- Net income available to common stockholders decreased $283,000, or 23.8%, to $904,000 compared to $1.2 million for the same period last year. These results were primarily due to an $471,000 increase in net interest income offset by a $374,000 decrease in non-interest income and an increase in non-interest expense of $535,000, as further described below. Net interest income before the provision for loan losses increased $471,000, or 11.0%, to $4.7 million compared to $4.3 million for the same period last year. This improvement was a result of an increase in interest income of $740,000, or 11.4%, partially offset by an increase in interest expense of $269,000, or 12.1%, compared to the same period last year. Interest income rose primarily as a result of increased real estate mortgage loan balances and interest expense rose primarily due to increased deposits and rates. The Company did not provide for additional loan loss reserves as the Company considers the current overall allowance for loan losses to be adequate. Non-interest income decreased $374,000, or 23.7%, to $1.2 million compared to $1.6 million for the same period last year. The decrease was primarily attributable to a decline in mortgage prepayment penalty income of $658,000 as a result of slowing mortgage refinance activity, partially offset by additional deposit fees and charges of $121,000 and additional income of $82,000 from an investment in bank owned life insurance. Non-interest expense increased $535,000, or 13.5%, to $4.5 million compared to $4.0 million for the same period last year. The increase in non-interest expense was primarily due to an increase of $376,000 in employee compensation and benefits expense, resulting from the staffing of our new Jamaica Center and Atlantic Terminal branches as well as Company-wide salary increases, increased cost of employee benefit plans and the timing of accruals for employee bonus expense. Also contributing to the increase in non-interest expense were additional net occupancy expenses of $141,000, primarily resulting from the new branches and 24/7 ATM centers. Income before taxes decreased $438,000, or 23.4%, to $1.4 million compared to $1.9 million for the same period last year. Income taxes decreased $122,000, or 19.2%, to $514,000 compared to $636,000 for the same period last year, primarily due to the decline in income before taxes. Nine-Month Results - ------------------ Net income available to common stockholders decreased $1.5 million, or 40.5%, to $2.1 million compared to $3.6 million for the same period last year. The decline is primarily due to increased non-interest expense of $1.9 million and decreased non-interest income of $1.1 million, partially offset by an increase in net interest income of $882,000 and a decrease in income taxes of $618,000, as detailed below. Net interest income before the provision for loan losses increased by $882,000, or 6.8%, to $13.9 million compared to $13.0 million for the same period last year. Interest income increased $1.3 million, or 6.9%, compared to the same period last year primarily as a result of increased real estate mortgage loan balances. Partially offsetting the rise in interest income was additional interest expense of $464,000, or an increase of 7.1%, compared to the same period last year, primarily due to increased deposits and rates. 2 Non-interest income decreased $1.1 million, or 26.1%, to $3.2 million compared to $4.3 million for the same period last year. The decrease was primarily attributable to an impairment charge deemed other than temporary of $1.5 million, resulting from the decline in market price of 150,000 shares of Independence stock that the Company currently holds. Also contributing to the decline in non-interest income was a decrease of $628,000 in loan fees and service charges, which were predominantly decreased mortgage prepayment penalties resulting from a decline in mortgage refinancing activity. Additionally, other non-interest income declined compared to the same period last year when a recovery of $558,000 from the recognition of previously unrecognized mortgage loan income was recorded. These declines were partially offset by the receipt of a net $1.1 million grant from the Department of the Treasury's Community Development Financial Institution Fund and increases in depository fees and charges of $201,000, resulting from higher ATM usage, growth in debit card income and commissions earned from the sale of investments and life insurance. Non-interest expense increased $1.9 million, or 16.1%, to $13.5 million compared to $11.6 million for the same period last year. The increase in non-interest expense was due to increases in employee compensation and benefits expense of $843,000, resulting from the staffing of our new Jamaica Center and Atlantic Terminal branches and the timing of accruals for employee bonus expense. Also contributing to the increase in non-interest expense was a charge of $847,000, resulting from expensing previously capitalized costs related to the proposed merger with Independence and additional net occupancy expenses of $349,000, primarily resulting from the opening of new branches and 24/7 ATM centers. Partially offsetting the increase in non-interest expense was a decline in other expenses of $218,000, primarily the result of lower consulting fees related to the establishment in fiscal 2004 of the Bank's real estate investment trust. Income before taxes decreased $2.1 million, or 37.1%, to $3.6 million compared to $5.7 million for the same period last year. Income taxes decreased $618,000, or 31.8%, to $1.3 million compared to $1.9 million for the same period last year due to the decline in income before taxes. FINANCIAL CONDITION HIGHLIGHTS At December 31, 2004, total assets increased by $77.2 million, or 14.3%, to $616.1 million compared to $538.8 million at March 31, 2004. The asset growth primarily reflects increases in total loans receivable, net, and total securities of $57.1 million and $11.9 million, respectively. The increase in total loans receivable, net, is attributable to new mortgage loan originations and purchases exceeding mortgage loan repayments. The increase in total securities is attributable to additional mortgage-backed securities to meet collateral requirements for New York State deposits at the Jamaica Center branch. Other assets, office properties and equipment, net, and Federal Home Loan Bank ("FHLB") stock increased by $5.8 million, $1.6 million and $1.0 million, respectively. The increase in other assets is primarily related to the Bank's $8.0 million investment in a bank owned life insurance program. The $1.6 million increase in office properties and equipment is primarily attributable to the new Atlantic Terminal branch in Brooklyn and 24/7 ATM center in Harlem. The Bank purchased additional FHLB stock to satisfy FHLB requirements. The increase in total assets was partially offset by a decline in total cash and cash equivalents of $538,000 as liquid funds were used to fund loan and securities growth. At December 31, 2004, total liabilities increased by $76.3 million, or 15.4%, to $570.5 million from $494.2 million at March 31, 2004. The increase in liabilities is a result of deposit growth of 3 $62.8 million, of which $50.0 million was deposited by the State and City of New York under the Banking Development District program. The increase in deposits was partially offset by a decrease of $7.4 million in other liabilities, resulting primarily from the payment of bank checks and income taxes. Additionally, advances from the FHLB and other borrowed money increased by $21.0 million, which was utilized to fund loan growth. At December 31, 2004, total stockholders' equity increased $917,000, or 2.1%, to $45.6 million compared to $44.6 million at March 31, 2004. The increase in total stockholders' equity was primarily attributable to increased retained earnings of $1.6 million from net income derived during fiscal 2005, partially offset by a decrease of $408,000 in accumulated other comprehensive income related to the mark-to-market of the Bank's available-for-sale securities and a reduction to equity of $361,000 related to the Bank repurchasing some of its outstanding shares through its stock repurchase program. During the quarter ended December 31, 2004, the Company purchased 26,400 additional shares of its common stock in the open market or through other privately negotiated transactions as part of its stock repurchase program announced on August 6, 2002. To date, the Company has purchased 61,550 shares of its common stock at an average price of $16.55 per share. The Company intends to use the repurchased shares to fund its stock-based benefit and compensation plans and for any other purpose the Board of Directors of the Company deems advisable in compliance with applicable law. ASSET QUALITY At December 31, 2004, non-performing assets totaled $1.6 million, or 0.39% of total loans receivable, compared to $2.1 million, or 0.60% of total loans receivable, at March 31, 2004. At December 31, 2004, the allowance for loan losses of $4.1 million remained unchanged from March 31, 2004. At December 31, 2004, the ratio of the allowance for loan losses to non-performing loans was 254.1% compared to 194.3% at March 31, 2004. At December 31, 2004, the ratio of the allowance for loan losses to total loans receivable was 1.00% compared to 1.16% at March 31, 2004. 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 eight 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. STATEMENTS CONTAINED IN THIS NEWS RELEASE, WHICH ARE NOT HISTORICAL FACTS ARE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, (THE "SECURITIES ACT"), AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED (THE "EXCHANGE ACT"). THESE FORWARD-LOOKING STATEMENTS MAY BE IDENTIFIED BY THE USE OF SUCH WORDS AS "BELIEVE," "EXPECT," "ANTICIPATE," "INTEND," "SHOULD," "WILL," "WOULD," "COULD," "MAY," "PLANNED," "ESTIMATED," "POTENTIAL," "OUTLOOK," "PREDICT," "PROJECT" AND SIMILAR TERMS AND PHRASES, INCLUDING REFERENCES TO ASSUMPTIONS. FORWARD-LOOKING STATEMENTS ARE BASED ON VARIOUS ASSUMPTIONS AND ANALYSES MADE BY THE COMPANY IN LIGHT OF MANAGEMENT'S EXPERIENCE AND ITS PERCEPTION OF HISTORICAL TRENDS, CURRENT CONDITIONS AND EXPECTED FUTURE DEVELOPMENTS, AS WELL AS OTHER FACTORS BELIEVED TO BE APPROPRIATE UNDER THE CIRCUMSTANCES. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND OTHER FACTORS, MANY OF WHICH ARE BEYOND THE COMPANY'S CONTROL, THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. FACTORS WHICH COULD RESULT IN MATERIAL VARIATIONS INCLUDE, WITHOUT LIMITATION, THE COMPANY'S SUCCESS IN IMPLEMENTING ITS INITIATIVES, INCLUDING EXPANDING ITS PRODUCT LINE, ADDING NEW BRANCHES AND ATM CENTERS, SUCCESSFULLY RE-BRANDING ITS IMAGE AND ACHIEVING GREATER OPERATING EFFICIENCIES; INCREASES IN COMPETITIVE PRESSURE AMONG FINANCIAL INSTITUTIONS OR NON-FINANCIAL INSTITUTIONS; LEGISLATIVE OR REGULATORY CHANGES WHICH MAY ADVERSELY AFFECT THE COMPANY'S BUSINESS OR INCREASE THE COST OF DOING BUSINESS; TECHNOLOGICAL CHANGES WHICH MAY BE MORE DIFFICULT OR EXPENSIVE THAN WE ANTICIPATE; CHANGES IN INTEREST RATES WHICH MAY REDUCE NET INTEREST MARGINS AND NET INTEREST INCOME; CHANGES IN DEPOSIT FLOWS, LOAN DEMAND OR REAL ESTATE VALUES WHICH MAY ADVERSELY AFFECT THE COMPANY'S BUSINESS; 4 CHANGES IN ACCOUNTING PRINCIPLES, POLICIES OR GUIDELINES WHICH MAY CAUSE THE COMPANY'S CONDITION TO BE PERCEIVED DIFFERENTLY; LITIGATION OR OTHER MATTERS BEFORE REGULATORY AGENCIES, WHETHER CURRENTLY EXISTING OR COMMENCING IN THE FUTURE, WHICH MAY DELAY THE OCCURRENCE OR NON-OCCURRENCE OF EVENTS LONGER THAN ANTICIPATED; THE ABILITY OF THE COMPANY TO ORIGINATE AND PURCHASE LOANS WITH ATTRACTIVE TERMS AND ACCEPTABLE CREDIT QUALITY; AND GENERAL ECONOMIC CONDITIONS, EITHER NATIONALLY OR LOCALLY IN SOME OR ALL AREAS IN WHICH THE COMPANY DOES BUSINESS, OR CONDITIONS IN THE SECURITIES MARKETS OR THE BANKING INDUSTRY WHICH COULD AFFECT LIQUIDITY IN THE CAPITAL MARKETS, THE VOLUME OF LOAN ORIGINATION, DEPOSIT FLOWS, REAL ESTATE VALUES, THE LEVELS OF NON-INTEREST INCOME AND THE AMOUNT OF LOAN LOSSES. THE FORWARD-LOOKING STATEMENTS CONTAINED WITHIN HEREIN ARE MADE AS OF THE DATE OF THIS REPORT, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT ACTUAL RESULTS, CHANGES IN ASSUMPTIONS OR CHANGES IN OTHER FACTORS AFFECTING SUCH FORWARD-LOOKING STATEMENTS OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. YOU SHOULD CONSIDER THESE RISKS AND UNCERTAINTIES IN EVALUATING FORWARD-LOOKING STATEMENTS AND YOU SHOULD NOT PLACE UNDUE RELIANCE ON THESE STATEMENTS. # # # 5 CARVER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (IN THOUSANDS, EXCEPT SHARE DATA)
DECEMBER 31, MARCH 31, 2004 2004 --------------- --------------- (UNAUDITED) ASSETS Cash and cash equivalents: Cash and due from banks $ 13,136 $ 11,574 Federal funds sold 8,500 8,200 Interest Earning Deposits 600 3,000 --------------- --------------- Total cash and cash equivalents 22,236 22,774 Securities: Available-for-sale, at fair value (including pledged as collateral of $114,109 at December 31, 2004, $82,325 at March 31, 2004) 119,982 96,403 Held-to-maturity, at amortized cost (including pledged as collateral of $31,054 at December 31, 2004, $42,189 at March 31, 2004) 31,830 43,474 --------------- --------------- Total securities 151,812 139,877 Loans receivable: Real estate mortgage loans 411,509 350,015 Consumer and commercial business loans 1,643 6,010 Allowance for loan losses (4,119) (4,125) --------------- --------------- Total loans receivable, net 409,033 351,900 Office properties and equipment, net 13,323 11,682 Federal Home Loan Bank of New York stock, at cost 5,625 4,576 Accrued interest receivable 2,713 2,489 Other assets 11,326 5,532 --------------- --------------- Total assets $ 616,068 $ 538,830 =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $ 436,425 $ 373,665 Advances from the Federal Home Loan Bank of New York and other borrowed money 125,290 104,282 Other liabilities 8,791 16,238 --------------- --------------- Total liabilities 570,506 494,185 =============== =============== Stockholders' equity: Preferred stock (par value $0.01 per share; 1,000,000 shares authorized; 100,000 issued and outstanding) - 1 Common stock (par value $0.01 per share: 10,000,000 shares authorized; 2,524,691 and 2,316,358 shares issued at December 31, 2004 and March 31, 2004, respectively; 2,480,393 and 2,285,267 outstanding at December 31, 2004 and March 31, 2004, respectively) 25 23 Additional paid-in capital 23,913 23,882 Retained earnings 22,536 20,892 Unamortized awards of common stock under management recognition plan (11) (21) Treasury stock, at cost (44,298 shares at December 31, 2004 and 31,091 shares at March 31, 2004) (751) (390) Accumulated other comprehensive income (150) 258 --------------- --------------- Total stockholders' equity 45,562 44,645 --------------- --------------- Total liabilities and stockholders' equity $ 616,068 $ 538,830 =============== ===============
6 CARVER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED DECEMBER 31, DECEMBER 31, ----------------------------------- ------------------------------------ (UNAUDITED) (UNAUDITED) 2004 2003 2004 2003 -------------- ----------------- ---------------- ---------------- Interest Income: Loans $ 5,780 $ 5,025 $ 16,897 $ 14,952 Total securities 1,411 1,396 3,962 4,507 Federal funds sold 32 62 89 143 -------------- ----------------- ---------------- ---------------- Total interest income 7,223 6,483 20,948 19,602 Interest expense: Deposits 1,449 1,140 3,886 3,560 Advances and other borrowed money 1,036 1,076 3,134 2,996 -------------- ----------------- ---------------- ---------------- Total interest expense 2,485 2,216 7,020 6,556 Net interest income 4,738 4,267 13,928 13,046 Provision for loan losses - - - - -------------- ----------------- ---------------- ---------------- Net interest income after provision for loan losses 4,738 4,267 13,928 13,046 Non-interest income: Depository fees and charges 600 479 1,655 1,454 Loan fees and service charges 466 1,037 1,547 2,175 Gain (loss) on sale of securities - - 94 31 Impairment of securities - - (1,472) - Gain on sale of loans 28 55 74 55 Grant income - - 1,140 - Other 109 6 135 577 -------------- ----------------- ---------------- ---------------- Total non-interest income 1,203 1,577 3,173 4,292 Non-interest expense: Employee compensation and benefits 2,365 1,989 6,435 5,592 Net occupancy expense 526 385 1,402 1,053 Equipment 400 331 1,165 1,113 Merger related expenses - - 847 - Other 1,216 1,267 3,667 3,885 -------------- ----------------- ---------------- ---------------- Total non-interest expense 4,507 3,972 13,516 11,643 Income before income taxes 1,434 1,872 3,585 5,695 Income taxes 514 636 1,328 1,946 -------------- ----------------- ---------------- ---------------- Net income $ 920 $ 1,236 $ 2,257 $ 3,749 ============== ================= ================ ================ Dividends applicable to preferred stock $ 16 $ 49 $ 114 $ 148 Net income available to common stockholders $ 904 $ 1,187 $ 2,143 $ 3,601 ============== ================= ================ ================ Earnings per common share: Basic $ 0.37 $ 0.52 $ 0.91 $ 1.58 ============== ================= ================ ================ Diluted $ 0.36 $ 0.47 $ 0.87 $ 1.45 ============== ================= ================ ================
7 CARVER BANCORP, INC. AND SUBSIDIARIES SELECTED KEY RATIOS (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED KEY OPERATING RATIOS: DECEMBER 31, DECEMBER 31, -------------------- -------------------- 2004 2003 2004 2003 ------- -------- ------- ------- Return on average assets (1) 0.62 % 0.94 % 0.53 % 0.96 % Return on average equity (2) 8.03 11.45 6.61 11.86 Interest rate spread (3) 3.28 3.33 3.34 3.41 Net interest margin (4) 3.41 3.53 3.42 3.58 Operating expenses to average assets (5) 3.05 3.15 3.16 3.04 Equity-to-assets (6) 7.40 8.18 7.40 8.18 Efficiency ratio (7) 75.86 68.78 79.04 67.48 Average interest-earning assets to interest-bearing liabilities 1.08 1.12 1.05 1.10 ASSET QUALITY RATIOS: DECEMBER 31, MARCH 31, -------------------- -------------------- 2004 2003 2004 2003 ------- -------- ------- ------- Non performing assets to total assets (8) 0.26 0.24 0.39 0.36 Non performing assets to total loans receivable (8) 0.39 0.37 0.60 0.61 Allowance for loan losses to total loans receivable 1.00 1.21 1.16 1.40 Allowance for loan losses to non-performing loans (8) 254.1 330.6 194.3 230.7
(1) Net income divided by average total assets, annualized (2) Net income divided by average total equity, annualized (3) Combined weighted average interest rate earned less combined weighted average interest rate cost (4) Net interest income divided by average interest-earning assets annualized (5) Non-interest expenses less loss on foreclosed real estate divided by average total assets, annualized. Excluding merger related expenses the ratio would be 2.96% year-to-date (6) Total equity divided by assets at period end (7) Operating expenses divided by sum of net interest income plus non-interest income. Excluding the Independence stock impairment charge, grant income and merger related expenses, the ratio would be 72.67% year-to-date (8) Non performing assets consist of non-accrual loans, loans accruing 90 days or more past due and property acquired in settlement of loans 8 -----END PRIVACY-ENHANCED MESSAGE-----