-----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, OrPg4Qol+1PiLMqc7e1fRmcRgjE8aSNtADUl+YcOZSBxZ6vhLHX+oPYNn6gz2qcB K/2tVfFdVYQKI9MV+vEXhQ== 0000882377-05-003165.txt : 20051101 0000882377-05-003165.hdr.sgml : 20051101 20051101111547 ACCESSION NUMBER: 0000882377-05-003165 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051027 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051101 DATE AS OF CHANGE: 20051101 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: 051168552 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 d394068.htm 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): October 27, 2005

________________________

CARVER BANCORP, INC.

(Exact name of registrant as specified in its charter)

________________________

 

Delaware

0-21487

13-3904147

(State or Other Jurisdiction
of Incorporation )

(Commission File Number)

(IRS Employe
Identification 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):

o Written communications pursuant to Rule425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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 October 27, 2005, Carver Bancorp, Inc. issued a press release reporting financial results for the second quarter of the fiscal year ending March 31, 2006. 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 October 27, 2005, which, among other things, highlights the Company’s financial results for the quarter ended September 30, 2005.

 

 


 

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: November 1, 2005

 

 


 

EXHIBIT INDEX

Exhibit Number

Description

99.1

Press release dated October 27, 2005, which, among other things, highlights the Company’s financial results for the quarter ended September 30, 2005.

 

 

 

 

 EX-99.1 2 d394168.txt PRESS RELEASE [CARVER BANCORP, INC. LOGO] Contact: David Lilly / Joseph Kuo William Gray Kekst and Company Carver Bancorp, Inc. (212) 521-4800 (212) 360-8840 CARVER BANCORP, INC. REPORTS SECOND QUARTER RESULTS ANNOUNCES SECOND QUARTER EPS OF $0.23, DECLARES $0.08 SECOND QUARTER DIVIDEND AND ACCELERATES STOCK REPURCHASE PROGRAM NEW YORK, NEW YORK, OCTOBER 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- and six-month periods ended September 30, 2005, the second quarter of the fiscal year ending March 31, 2006 ("fiscal 2006"). The Company reported diluted earnings per share of $0.23 for the quarter ended September 30, 2005 compared to $0.09 diluted earnings per share for the same period last year. Net income available to common stockholders increased $395,000, to $601,000 compared to $206,000 for the same period last year. An increase in non-interest income and a decrease in non-interest expense were partially offset by lower net interest income and higher income tax expense in the period. Deborah C. Wright, Chairman, President and CEO of Carver, stated: "Our retail group continues to achieve success in building core deposits from our historical and newly built branches. Modest but consistent growth in core deposits is fueling similar improvements in depository fees and charges. However, the two most important factors in Carver's results for the second quarter were the continued margin compression and the decline in mortgage refinancings. While our lending balances increased substantially based on growth in originations and purchases in a highly competitive market for commercial real estate and affordable housing, loan fees and service charges declined as refinancings ebbed." Ms. Wright continued: "We recognize, consistent with our industry, that until the yield curve begins to steepen, our net interest margin will continue to be under pressure. As such, we will continue to focus on opportunities to replace lower yielding investments with higher yielding loans and build core and other low cost sources of deposits." Ms. Wright continued: "We continue to conduct a comprehensive review of costs to improve the Company's efficiency ratio. Much of the increase in Carver's operating expenses follows the investment made to grow the franchise, which we believe will create long-term shareholder value. Nevertheless, we made progress last quarter in reducing costs as we successfully completed the outsourcing of our ATM driving technology. We are also working on outsourcing a number of corporate administrative functions." Ms. Wright concluded: "We are pleased to report that as part of our commitment to deliver value to our shareholders the Company's Board of Directors declared a quarterly dividend of $0.08 per share for the second quarter, payable on November 22, 2005, to shareholders of record at the close of business on November 8, 2005. In addition, the Board of Directors has decided that the outlook for Carver's future long-term growth and earnings support management's recommendation to return up to $2.5 million of capital to shareholders through an acceleration of repurchases over the next 18 months of the remaining 148,051 shares authorized under the 2002 stock repurchase program. We believe that this overall program to deliver value to our shareholders highlights our confidence in the future success of Carver." STOCK REPURCHASE PROGRAM In August 2002, Carver's Board of Directors authorized a stock repurchase program to acquire up to 231,635 shares of the Company's outstanding common stock, or approximately 10 percent of the then outstanding shares. Since that time, the Company has purchased 83,584 shares at an average price of $17.03 to fund its stock-based benefit and compensation plans. On October 25, 2005, the Board of Directors approved accelerating the repurchase of the remaining 148,051 shares under the 2002 program, or up to a $2.5 million total investment, to take place over the next 18 months. This acceleration is designed not only to return capital to shareholders and capitalize on current trading values, but also to continue funding stock-based benefit and compensation plans. Purchases for the stock repurchase program may be made from time to time on the open market and in privately negotiated transactions. The timing and actual number of shares repurchased under the plan depends on a variety of factors including price, corporate and regulatory requirements, and other market conditions. INCOME STATEMENT HIGHLIGHTS Quarterly Results - ----------------- Net income available to common stockholders increased $395,000, or 191.7%, to $601,000 compared to $206,000 for the same period last year. These results were primarily due to a $433,000 decrease in non-interest expense, a $201,000 increase in non-interest income and a decrease of $49,000 in dividends paid to preferred shareholders in the same period last year. Partially offsetting the increase in net income available to common stockholders was a $110,000 decrease in net interest income and an increase in income tax expense of $178,000, as further described below. Net interest income decreased $110,000, or 2.4%, to $4.5 million compared to $4.6 million for the same period last year. This decline was a result of an increase in interest expense of $845,000, or 35.7%, partially offset by an increase in interest income of $735,000, or 10.5%, compared to the same period last year. Interest expense rose primarily as a result of an increase in the cost of money market and certificates of deposit accounts of 61 and 91 basis points, respectively. Interest income rose despite declining yields primarily as a result of increased real estate mortgage loan balances. 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 increased $201,000, or 24.2%, to $1.0 million compared to $830,000 for the same period last year. Non-interest income was affected by two significant events in the prior year's quarter. The first was a $1.5 million impairment charge deemed other than temporary that resulted from a decline in the market price of Independence Federal Savings Bank common stock that the Company held. Partially offsetting the impairment charge in the prior year's quarter was the receipt of a net $1.1 million grant from the department of the Treasury. In the current quarter, non-interest income increased as a result of additional deposit fees and charges of $133,000 from increased ATM and debit card fees as well as commissions from the sale of investments and life insurance. Partially offsetting non-interest income was a decline in loan fees and service charges of $218,000, primarily a reduction in prepayment penalty income as a result of slowing mortgage refinance activity. Non-interest expense decreased $433,000, or 8.5%, to $4.6 million compared to $5.1 million for the same period last year. The decrease in non-interest expense was primarily due to a charge of $847,000 taken in the prior year quarter resulting from the expensing of capitalized costs related to the cessation of the merger with Independence Federal Savings Bank. In the current quarter, employee compensation and benefits expense increased $262,000 primarily as a result of staffing our new branches, Company-wide annual salary increases and the increased cost of employee benefit plans. Also contributing to the increase in non-interest expense in the current quarter were additional net occupancy and equipment expenses of $105,000 and $93,000, respectively, primarily resulting from the new branches and 24/7 ATM centers. Income before taxes increased $524,000, or 129.1%, to $930,000 compared to $406,000 for the same period last year. Income taxes increased $178,000, or 117.9%, to $329,000 compared to $151,000 for the same period last year, primarily due to the increase in income before taxes. Six-Month Results - ----------------- Net income available to common stockholders increased $203,000, or 16.4%, to $1.4 million compared to $1.2 million for the same period last year. The increase is primarily due to higher non-interest income of $459,000, a decrease of $98,000 in dividends paid for preferred stock due to a conversion of the preferred stock to common stock in the prior year, an increase in net interest income of $47,000 and a decrease in income taxes of $21,000. Partially offsetting the increase in net income available to common stockholders was an increase in non-interest expense of $422,000, as detailed below. Net interest income increased by $47,000, or 0.5%, to $9.2 million, relatively unchanged from the same period last year. Interest income increased $1.8 million, or 12.9%, 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 $1.7 million, or an increase of 38.1%, compared to the same period last year, primarily due to increased rates and deposit balances. Non-interest income increased $459,000, or 23.3%, to $2.4 million compared to $2.0 million for the same period last year. Non-interest income increased compared to the second quarter of fiscal 2005 when the Company recognized 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 held. In the second quarter of fiscal 2006, depository fees and charges increased $242,000, resulting from higher ATM usage, growth in debit card income and commissions earned from the sale of investments and life insurance. Also contributing to the rise in non-interest income was an increase of $71,000 in other income, primarily income earned as a result of the Bank's investment in a Bank owned life insurance ("BOLI") program. These increases were partially offset by a net $1.1 million grant from the Department of the Treasury's Community Development Financial Institution Fund and a $94,000 gain from the sale of securities, both in the same period last year. Loan fees and service charges declined $67,000, primarily as a result of decreased mortgage prepayment penalties following continued decline in mortgage refinancing activity. Non-interest expense increased $422,000, or 4.7%, to $9.4 million compared to $9.0 million for the same period last year. The increase in non-interest expense was due to increases in employee compensation and benefits expense of $785,000, resulting from the staffing of new branches, Company-wide annual salary increases in the second quarter of fiscal 2006 and the increased cost of employee benefit plans. Also contributing to the increase in non-interest expense were additional net occupancy and equipment expenses of $203,000 and $165,000, respectively, also as a result of opening the new branches and 24/7 ATM centers. Partially offsetting the increase in non-interest expense was a charge of $847,000 incurred in the same period last year, which resulted from expensing previously capitalized costs related to cessation of the merger with Independence Federal Savings Bank. Income before taxes increased $84,000, or 3.9%, to $2.2 million relatively unchanged from the same period last year. Income taxes decreased $21,000, or 2.6%, to $793,000 compared to $814,000 for the same period last year due to a decline in the effective tax rate as a result of the tax benefit associated with the Bank's investment in a BOLI program. FINANCIAL CONDITION HIGHLIGHTS At September 30, 2005 total assets increased by $21.3 million, or 3.4%, to $647.7 million compared to $626.4 million at March 31, 2005. The asset growth primarily reflects increases in total loans receivable, net, and other assets of $29.3 million and $5.3 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 other assets is primarily attributable to a short term receivable related to mortgage-backed security principal repayments being held as collateral by New York State. The increase in total assets was partially offset by a decline in total securities of $13.3 million primarily as a result of maturities and repayments. Cash and cash equivalents declined $652,000 as liquid funds were used to fund loan growth. At September 30, 2005, total liabilities increased by $19.6 million, or 3.4%, to $600.2 million from $580.6 million at March 31, 2005. The increase in liabilities is a result of deposit growth of $12.4 million and increases in advances from the Federal Home Loan Bank of New York of $10.0 million, which were used to fund loan growth. Partially offsetting the increase in total liabilities was a decrease in other liabilities of $2.8 million, resulting primarily from the payment of income taxes. At September 30, 2005, total stockholders' equity increased $1.7 million, or 3.7%, to $47.5 million compared to $45.8 million at March 31, 2005. The increase in total stockholders' equity was primarily attributable to increased retained earnings of $1.1 million from net income derived during fiscal 2006. Additionally, an increase of $435,000 was attributable to the re-issuance of common stock the Company previously repurchased to fund its compensation and benefit programs. Also contributing to the increase in stockholders' equity was an additional $182,000 in accumulated other comprehensive income related to the mark-to-market of the Bank's available-for-sale securities. ASSET QUALITY At September 30, 2005, non-performing assets totaled $2.7 million, or 0.59% of total loans receivable, compared to $998,000, or 0.23% of total loans receivable, at March 31, 2005. While non performing assets have increased, the level of non performing assets to total loans remains within the range the Bank has experienced over the trailing eight quarters. At September 30, 2005, the allowance for loan losses of $4.1 million remained relatively unchanged from March 31, 2005. At September 30, 2005, the ratio of the allowance for loan losses to non-performing loans was 150.8% compared to 410.7% at March 31, 2005. At September 30, 2005, the ratio of the allowance for loan losses to total loans receivable was 0.89% compared to 0.96% at March 31, 2005. ADJUSTMENT TO EARNINGS RELEASE SCHEDULE Beginning next quarter, Carver intends to issue its quarterly earnings press release approximately 45 days following quarter end, at the same time the Company files its Securities and Exchange Commission ("SEC") Form 10-Q. Carver also intends to issue its fiscal year end earnings release 45 days following the fiscal year end, but the Company's SEC Form 10-K will be filed within 90 days of year end. Changes in the timing of the earnings press release reflect a growing trend driven in part by the impact of Sarbanes-Oxley and other reporting requirements. 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 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; 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. # # #
CARVER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands, except share data) SEPTEMBER 30, MARCH 31, 2005 2005 ------------ ------------- (UNAUDITED) ASSETS Cash and cash equivalents: Cash and due from banks $ 10,468 $ 13,020 Federal funds sold 8,700 6,800 Interest Earning Deposits 600 600 ------------ ------------- Total cash and cash equivalents 19,768 20,420 Securities: Available-for-sale, at fair value (including pledged as collateral of $104,882 at September 30, 2005 and $112,503 at March 31, 2005) 108,150 118,033 Held-to-maturity, at amortized cost (including pledged as collateral of $27,460 at September 30, 2005 and $30,900 at March 31, 2005; fair value of $27,575 at September 30, 2005 and $31,310 at March 31, 2005) 27,836 31,302 ------------ ------------- Total securities 135,986 149,335 Loans receivable: Real estate mortgage loans 453,837 424,387 Consumer and commercial business loans 1,502 1,697 Allowance for loan losses (4,064) (4,097) ------------ ------------- Total loans receivable, net 451,275 421,987 Office properties and equipment, net 13,718 13,658 Federal Home Loan Bank of New York stock, at cost 5,624 5,125 Real estate owned 10 - Accrued interest receivable 2,912 2,702 Other assets 18,405 13,150 ------------ ------------- Total assets $647,698 $626,377 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $465,855 $453,454 Advances from the Federal Home Loan Bank of New York and other borrowed money 125,316 115,299 Other liabilities 9,039 11,823 ------------ ------------- Total liabilities 600,210 580,576 Stockholders' equity: Common stock (par value $0.01 per share: 10,000,000 shares authorized; 2,524,691 shares issued; 2,513,458 and 2,501,338 outstanding at September 30, 2005 and March 31, 2005, respectively) 25 25 Additional paid-in capital 23,941 23,937 Retained earnings 23,814 22,748 Unamortized awards of common stock under ESOP and management recognition plan ("MRP") (37) (128) Treasury stock, at cost (11,233 shares at September 30, 2005 and 23,353 shares at March 31, 2005) (202) (546) Accumulated other comprehensive loss (53) (235) ------------ ------------- Total stockholders' equity 47,488 45,801 ------------ ------------- Total liabilities and stockholders' equity $647,698 $626,377 ============ =============
CARVER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) THREE MONTHS ENDED SIX MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------- ------------------------------- 2005 2004 2005 2004 ------------- ------------ ------------ ------------- Interest Income: Loans $ 6,214 $ 5,700 $ 12,421 $ 11,116 Mortgage-backed securities 1,135 1,102 2,260 2,129 Investment securities 277 189 551 422 Federal funds sold 122 22 268 58 ------------- ------------ ------------ ------------- Total interest income 7,748 7,013 15,500 13,725 Interest expense: Deposits 2,096 1,313 3,966 2,438 Advances and other borrowed money 1,117 1,055 2,298 2,098 ------------- ------------ ------------ ------------- Total interest expense 3,213 2,368 6,264 4,536 Net interest income 4,535 4,645 9,236 9,189 Provision for loan losses - - - - ------------- ------------ ------------ ------------- Net interest income after provision for loan losses 4,535 4,645 9,236 9,189 Non-interest income: Depository fees and charges 668 535 1,297 1,055 Loan fees and service charges 339 557 1,013 1,080 Gain on sale of securities - - - 94 Impairment of securities - (1,472) - (1,472) Gain on sale of loans 10 44 20 45 Grant income - 1,140 - 1,140 Other 14 26 99 28 ------------- ------------ ------------ ------------- Total non-interest income 1,031 830 2,429 1,970 Non-interest expense: Employee compensation and benefits 2,330 2,068 4,854 4,069 Net occupancy expense 578 473 1,079 876 Equipment, net 488 395 929 764 Merger related expenses - 847 - 847 Other 1,240 1,286 2,568 2,452 ------------- ------------ ------------ ------------- Total non-interest expense 4,636 5,069 9,430 9,008 Income before income taxes 930 406 2,235 2,151 Income taxes 329 151 793 814 ------------- ------------ ------------ ------------- Net income $ 601 $ 255 $ 1,442 $ 1,337 ============= ============ ============ ============= Dividends applicable to preferred stock $ - $ 49 $ - $ 98 Net income available to common stockholders $ 601 $ 206 $ 1,442 $ 1,239 ============= ============ ============ ============= Earnings per common share: Basic $ 0.24 $ 0.09 $ 0.58 $ 0.54 ============= ============ ============ ============= Diluted $ 0.23 $ 0.09 $ 0.56 $ 0.51 ============= ============ ============ =============
CARVER BANCORP, INC. AND SUBSIDIARIES SELECTED KEY RATIOS (Unaudited) THREE MONTHS ENDED SIX MONTHS ENDED SELECTED FINANCIAL DATA: SEPTEMBER 30, SEPTEMBER 30, ------------------------------ ------------------------------ 2005 2004 2005 2004 ------------- ------------ ------------ ------------- Return on average assets (1) 0.39% 0.18% 0.46% 0.48% Return on average equity (2) 5.10 2.23 6.12 5.90 Interest rate spread (3) 2.94 3.22 2.96 3.20 Net interest margin (4) 3.11 3.40 3.14 3.44 Operating expenses to average assets (5) 2.97 3.54 3.03 3.21 Efficiency ratio (6) 83.29 92.58 80.84 80.72 Equity-to-assets (7) 7.33 7.84 7.33 7.84 Tier I leverage capital ratio (8) 9.26 9.62 9.26 9.62 Tier I risk-based capital ratio (8) 13.39 14.85 13.39 14.85 Total risk-based capital ratio (8) 14.30 15.95 14.30 15.95 Average interest-earning assets to interest-bearing liabilities 1.08 x 1.10 x 1.08 x 1.13 x Net income per share - basic $0.24 $0.09 $0.58 $0.54 Net income per share - diluted $0.23 $0.09 $0.56 $0.51 Average shares outstanding - basic 2,510,477 2,291,761 2,505,469 2,288,190 Average shares outstanding - diluted 2,573,156 2,589,112 2,570,540 2,593,540 Cash dividends $0.08 $0.07 $0.15 $0.14 Dividend payout ratio (9) 33.44% 62.98% 26.09% 20.55% ASSET QUALITY RATIOS: SEPTEMBER 30, MARCH 31, ------------------------------ ------------------------------ 2005 2004 2005 2004 ------------- ------------ ------------ ------------- Non performing assets to total assets (10) 0.42% 0.31% 0.16% 0.39% Non performing assets to total loans receivable (10) 0.59 0.47 0.23 0.60 Allowance for loan losses to total loans receivable 0.89 1.08 0.96 1.16 Allowance for loan losses to non-performing loans 150.8% 229.0% 410.7% 194.3% (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 real estate owned divided by average total assets, annualized. (6) Operating expenses divided by sum of net interest income plus non-interest income. (7) Total equity divided by assets at period end. (8) These ratios reflect consolidated bank only. (9) Dividend paid on common stock during the period divided by net income available to common stockholders for the period. (10) Non performing assets consist of non-accrual loans, loans accruing 90 days or more past due and real estate owned.
CARVER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCES (Dollars in thousands) (Unaudited) THREE MONTHS ENDED SEPTEMBER 30, --------------------------------------------------------------------------------------- 2005 2004 ------------------------------------------ ------------------------------------------ AVERAGE AVERAGE AVERAGE AVERAGE INTEREST EARNING ASSETS: BALANCE INTEREST YIELD/COST BALANCE INTEREST YIELD/COST ------------- ------------ ------------ ------------- ------------ ------------ (DOLLARS IN THOUSANDS) Loans (1) $424,882 $ 6,214 5.85% $380,052 $ 5,700 6.00% Total securities (2) 146,781 1,412 3.85% 159,616 1,291 3.24% Fed funds sold 14,639 122 3.31% 6,579 22 1.34% ------------- ------------ ------------ ------------- ------------ ------------ Total interest earning assets 586,302 7,748 5.29% 546,247 7,013 5.14% Non-interest earning assets 37,090 26,593 ------------- ------------- Total assets $623,392 $572,840 ============= ============= INTEREST BEARING LIABILITIES: Deposits: Checking $ 24,028 18 0.30% $ 20,549 17 0.34% Savings and clubs 137,562 226 0.65% 132,848 202 0.61% Money market accounts 40,573 160 1.56% 29,621 70 0.95% Certificates of deposit 229,670 1,684 2.91% 204,125 1,018 2.00% ------------- ------------ ------------ ------------- ------------ ------------ Total deposits 431,833 2,088 1.92% 387,143 1,307 1.35% Mortgagors deposits 1,989 8 1.60% 2,846 6 0.90% Borrowed money 107,508 1,117 4.12% 105,690 1,055 4.01% ------------- ------------ ------------ ------------- ------------ ------------ Total interest bearing liabilities 541,330 3,213 2.35% 495,679 2,368 1.92% Non-interest-bearing liabilities: Demand 27,888 24,568 Other Liabilities 7,049 6,820 ------------- ------------- Total liabilities 576,267 527,067 Stockholders' equity 47,125 45,773 ------------- ------------- Total liabilities and stockholders' equity $623,392 $572,840 ============= ------------ ============= ------------ Net interest income $ 4,535 $ 4,645 ============ ============ Average interest rate spread 2.94% 3.22% ============ ============ Net interest margin 3.11% 3.40% ============ ============ (1) Includes non-accrual loans (2) Includes FHLB-NY stock
CARVER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED AVERAGE BALANCES (Dollars in thousands) (Unaudited) SIX MONTHS ENDED SEPTEMBER 30, ------------------------------------------------------------------------------------------- 2005 2004 --------------------------------------------- ------------------------------------------- AVERAGE AVERAGE AVERAGE AVERAGE INTEREST EARNING ASSETS: BALANCE INTEREST YIELD/COST BALANCE INTEREST YIELD/COST --------------- ------------ ------------ ------------- ------------ ------------ (DOLLARS IN THOUSANDS) Loans (1) $ 421,895 $ 12,421 5.89% $370,276 $ 11,116 6.00% Total securities (2) 150,594 2,811 3.73% 153,990 2,551 3.31% Fed funds sold 17,347 268 3.08% 11,294 58 1.02% --------------- ------------ ------------ ------------- ------------ ------------ Total interest earning assets 589,836 15,500 5.26% 535,560 13,725 5.11% Non-interest earning assets 36,372 24,837 --------------- ------------- Total assets $ 626,208 $560,397 =============== ============= INTEREST BEARING LIABILITIES: Deposits: Checking $ 24,858 38 0.30% $ 11,763 36 0.59% Savings and clubs 138,695 449 0.65% 132,867 400 0.60% Money market accounts 38,635 285 1.47% 30,197 136 0.90% Certificates of deposit 228,540 3,177 2.77% 192,270 1,854 1.92% --------------- ------------ ------------ ------------- ------------ ------------ Total deposits 430,728 3,949 1.83% 367,097 2,426 1.32% Mortgagors deposits 2,290 17 1.48% 2,472 12 0.94% Borrowed money 110,907 2,298 4.13% 105,023 2,098 4.00% --------------- ------------ ------------ ------------- ------------ ------------ Total interest bearing liabilities 543,925 6,264 2.30% 474,592 4,536 1.91% Non-interest-bearing liabilities: Demand 27,660 33,209 Other Liabilities 7,767 7,247 --------------- ------------- Total liabilities 579,352 515,048 Stockholders' equity 46,856 45,349 --------------- ------------- Total liabilities and stockholders' equity $ 626,208 $560,397 =============== ------------ ============= ------------ Net interest income $ 9,236 $ 9,189 ============ ============ Average interest rate spread 2.96% 3.20% ============ ============ Net interest margin 3.14% 3.44% ============ ============ (1) Includes non-accrual loans (2) Includes FHLB-NY stock
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