Exhibit 99.1

Ruth Pachman or

Chris A. McFadden

Michael Herley

Kekst and Company

Carver Bancorp, Inc.

(212) 521-4800

(718) 676-8940

Exhibit 99.1

CARVER BANCORP, INC. REPORTS SECOND QUARTER FISCAL YEAR 2011 RESULTS

Dividend on Common Stock Suspended

New York, New York, October 29, 2010 — Carver Bancorp, Inc. (the “Company”) (NASDAQ: CARV), the holding company for Carver Federal Savings Bank (“Carver” or the “Bank”), today announced financial results for the three month period ended September 30, 2010, the second quarter of its fiscal year ending March 31, 2011 (“fiscal 2011”), as well as suspension of the quarterly cash dividend on its common stock.

The Company reported a net loss of $23.4 million for the second quarter of fiscal 2011 compared to a net loss of $0.3 million for the second quarter of fiscal 2010 and a loss of $2.5 million for the first quarter of fiscal 2011. On a per share basis, the net loss per share for the quarter was $9.43 compared to a net loss per share of $0.22 for the second quarter of fiscal 2010 and a net loss per share of $1.09 for the first quarter of fiscal 2011. The losses for the quarter are due primarily to a higher provision for loan losses and a $20.7 million non-cash charge to establish a valuation allowance on the Company’s deferred tax asset. Earnings were also impacted by the current low interest rate environment combined with elevated levels of non-performing loans and a reduction in interest earning assets.

“We have taken aggressive steps toward rebalancing our loan portfolio and preserving capital as the impact of a prolonged recession makes its way through our books,” said Deborah C. Wright, the Company’s Chairman and CEO. “In addition to suspending the quarterly cash dividend, we have dramatically reduced Carver’s concentration in real estate loans. Over the past six months, through the diligent efforts of our lending and workout teams, we have reduced our construction loan balances by 26% through a combination of problem loan resolutions, charge offs, pay downs and early payoffs. As we continue these efforts, we expect continued significant reductions in construction loan balances in addition to other actions we are taking to reduce the size of our balance sheet.

“While improving asset quality is our main priority, we also have new initiatives in place to reduce costs, maintain our strong interest rate margin and increase fee income. Importantly we look forward to launching a new product line to reach our community’s unbanked residents, in early 2011. While some further erosion in our asset quality is expected into the next quarter, we are hopeful that the total level of delinquencies will begin to subside in the first half of 2011.”

Ms. Wright added, “While we continue to meet the regulatory definition of a well capitalized bank, the Office of Thrift Supervision has made it clear, as we first disclosed last December, that we should significantly raise our capital ratios in light of our current asset quality and earnings level, in order to avoid additional regulatory oversight in the future. As a result, we are in an active process to raise new capital, which may include a combination of equity and debt instruments. This is our highest priority and we hope to have the process completed by the end of this year.

“These continue to be very challenging times, but we are positioning Carver to successfully weather this economic downturn and build on the strength of our franchise and leadership position in the neighborhoods we serve,” Ms. Wright concluded.

For the six month period ended September 30, 2010, the Company reported a net loss of $25.9 million, or $10.53 per share, compared to net income of $0.4 million, or a loss per common share of $0.04 for the prior year period. The losses for the three and six month periods ended September 30, 2010, are due primarily to higher provisions for loan losses and a $20.7 million non-cash charge to establish a valuation allowance on the Company’s deferred tax asset in the second quarter of fiscal 2011. The valuation allowance, which could be released in future periods if the Company returns to profitability, had no impact on the Bank’s liquidity or its regulatory capital ratios.

Quarterly Dividend Suspended

The Company’s Board of Directors announced that, based on highly uncertain economic conditions and the desire to preserve capital, Carver is suspending payment of the quarterly cash dividend on its common stock, effective immediately. While no assurance can be given that the payment of cash dividends will be resumed, the Board will continue to monitor business conditions, the Company’s capitalization and profitability levels, asset quality and other factors in considering whether to resume such payments in the future.

Income Statement Highlights

Restatement of Second Quarter Fiscal 2010 Results to Reflect the Correct Estimated Value of Certain Residential Mortgage Loans

As previously disclosed in a Form 8-K filed with the Securities and Exchange Commission on July 15, 2010, the Company restated its previously reported operating results for the second fiscal quarter ended September 30, 2009 to adjust the estimated fair value of certain residential mortgage loans that were classified as Held for Sale and reported at the lower of cost or fair value as of September 30, 2009. As a result of the correction net income for the second fiscal quarter was adjusted from a $0.8 million profit to a $0.3 million loss for the quarter. The adjustment reduced net income for the six month period ended September 30, 2009 from $1.5 million to $0.4 million. For additional information, please review the Company’s Form 10-K for the year ended March 31, 2010 and the Form 8-K filed on July 15, 2010. All financial information provided herein reflects these restated amounts.

Second Quarter Results

The Company reported a net loss for the quarter ended September 30, 2010 of $23.4 million compared to a net loss of $0.3 million for the prior year period. The net loss is the result of $6.5 million in higher provisions for loan losses and a $20.7 million valuation allowance taken on the Company’s deferred tax asset (“DTA”), partially offset by increased non-interest income.

Net Interest Income

Interest income decreased $1.2 million in the second quarter, compared to the prior year quarter, as the average balance of interest earning assets declined $45.5 million, primarily due to a $42.0 million decline in the average balance of loans and a $5.0 million decline in the average balance of mortgage-backed securities. The decline in average loans was the result of management’s efforts to reduce the Company’s concentration of certain asset classes in its loan portfolio, which is expected to continue into next quarter. A decline of 72 basis points in the average yield on mortgage-backed securities to 3.40% from 4.12% in the prior year period also contributed to the overall decline in interest income. The current low interest rate environment combined with elevated levels of non-performing loan assets and a reduction in interest earning assets continue to constrain earnings.

Interest expense decreased by $0.2 million, or 8.8%, to $2.5 million for the second quarter, compared to $2.7 million for the prior year period. The decrease was primarily the result of a decrease in interest expense on deposits of $0.3 million. The decrease in interest expense reflects an 11 basis point decrease in the average cost of interest-bearing liabilities to 1.49% for the second quarter, compared to an average cost of 1.60% for the prior year period. The decrease in the average cost of interest bearing liabilities was primarily due to the downward re-pricing of certificates of deposits and an increase in money market balances, which generally carry lower interest rates than certificates of deposit.

Provision for Loan Losses

The Company recorded a $7.8 million provision for loan losses for the second quarter compared to $1.3 million for the prior year period. For the three months ended September 30, 2010, net charge-offs were $6.0 million compared to net charge-offs of $0.6 million for the prior year period. The increase in our provision reflects the Company’s continued high levels of delinquencies and non-performing loans, the overall inherent risk in our loan portfolio and the uncertainty caused by the uneven economic recovery in the real estate market and the New York City economy.

Non-interest Income

Non-interest income increased $2.9 million, or 433.6%, to $2.2 million for the second quarter, compared to a loss of $0.7 million for the prior year period. The increase is primarily due to lower valuation adjustments on loans held for sale of $2.1 million to reflect loans held for sale at the lower of cost or fair value, a gain on the sale of investment securities of $0.7 million and higher fee income on New Market Tax Credit (NMTC) transactions of $0.3 million, partially offset by lower loan and deposit fees of $0.2 million.

Non-interest Expense

Non-interest expense increased $0.7 million, or 10.1%, to $7.6 million compared to $6.9 million for the prior year period. This change was primarily due to increased loan related expenses of $0.4 million, increased consulting expenses of $0.2 million and increased FDIC insurance premium charges of $0.1 million.

Income Taxes

The income tax expense was $17.0 million for the second quarter compared to a $0.8 million tax benefit for the prior year period. The income tax expense for the three month period ending September 30, 2010 consists of an income tax benefit of $3.7 million, primarily due to the Company’s loss before income taxes in the current quarter compared to a smaller loss in the prior year period, offset by an income tax expense associated with the establishment of a $20.7 million valuation allowance against the deferred tax asset recorded during the quarter. In addition, the current quarter reflects the utilization of credits of $0.6 million on NMTC transactions. Management has concluded that it is “more likely than not” that the Company will not be able to fully realize the benefit of its deferred tax assets and thus, a valuation allowance of $20.7 million was recorded during the quarter. This valuation allowance does not preclude the Company from utilizing the accumulated deferred tax asset to offset future earnings.

Six Month Results

The Company reported a net loss for the six months ended September 30, 2010 of $25.9 million, compared to net income of $0.4 million for the prior year period. The decrease is primarily due to $12.1 million of higher provisions for loan losses and a $20.7 million valuation allowance incurred on the Company’s deferred tax asset, offset by an increase in non-interest income.

Net Interest Income

Net interest income decreased $0.8 million to $13.9 million compared to $14.7 million for the prior year period. This decrease was due to a decrease of $1.5 million in interest income offset by $0.7 million decrease in interest expense.

Interest income on loans was the primary driver of the decline in interest income, decreasing $1.2 million or 6.14% from the prior year period. The change reflects a year over year decline of $26 million on the average balance as well as a reduction in the average yield on loans of 13 basis points to 5.43% compared to the prior year period of 5.56%. Also contributing to the decline in interest income was the mortgage backed securities portfolio. The average yield decreased 57 basis points to 3.56% compared to the prior year period of 4.13%, primarily reflecting the current low interest rate environment.

Interest expense decreased $0.7 million or 12.28% from the prior year period. The decline was primarily the result of lower interest expense on deposits of $0.8 million. This decline reflects an 11 basis point decrease in the average cost of interest bearing liabilities to 1.50% from 1.71% for the prior year period. The lower average cost of interest bearing liabilities was primarily due to the increase in non-interest bearing checking accounts, downward re-pricing of certificates of deposits, and increased money market balances, which often carry lower interest rates than certificates of deposit.

Provision for Loan Losses

For the six month period ending September 30, 2010 the Company recorded a $14.1 million provision for loan losses compared to $2.0 million for the prior year period. Net charge-offs totaled $8.7 million for the six months ended September 30, 2010 compared to net charge-offs of $0.9 million for the prior year period. The Company determined that an increase in provision was warranted given its current level of delinquencies, coupled with continued uncertainty in the real estate market given the uneven economic recovery.

Non-Interest Income

Non- interest income increased $3.6 million during the six month period ending September 30, 2010 to $4.1 million compared to $0.5 million in the prior year period. The increase was primarily due to fees of $1.1 million received on three NMTC transactions as well as a reduction of $2.1 million in the amount required to reflect loans held for sale at the lower of cost or fair value.

Non-interest Expense

Non-interest expense increased $1.1 million during the six month period ending September 30, 2010 to $15.1 million compared to $14.0 million in the prior period. The increase was primarily due to loan related expenses of $0.5 million and increased consulting expenses of $0.2 million

Income Taxes

Prior to the recognition of a valuation allowance, during the six month period ending September 30, 2010 the Company recorded an income tax benefit of $6.0 million compared to a prior year benefit of $1.2 million. The income tax expense recorded for the six month period ended September 30, 2010 consists of an increase in tax benefits resulting from the Company’s loss before income taxes in the first six months of the year compared to the prior year offset by tax expense associated with the establishment of a $20.7 million valuation allowance against the Company’s deferred tax asset. The current period reflects the utilization of NMTC tax credits of $1.2 million. Management has concluded that it is “more likely than not” that the Company will not be able to fully realize the benefit of its deferred tax assets and thus a valuation allowance of $20.7 million was recorded during the quarter ended September 30, 2010. This valuation allowance does not preclude the Company from utilizing the accumulated deferred tax asset to offset future earnings.

Financial Condition Highlights

At September 30, 2010, total assets decreased $50.7 million, or 6.3%, to $754.8 million compared to $805.5 million at March 31, 2010. The loan portfolio decreased $50.8 million, the loan loss provision increased $5.4 million, the deferred tax asset decreased $14.3 million and cash and cash equivalents decreased $2.5 million. These decreases were offset by increases in investment securities of $21.7 million, and other assets of $2.0 million.

Cash and cash equivalents decreased $2.5 million, or 6.6%, to $35.8 million at September 30, 2010, compared to $38.3 million at March 31, 2010. The decrease is due to utilization of cash flow from loan repayments to repay fixed rate borrowings and increase investment securities.

Total securities increased $21.7 million, or 39.2%, to $77.1 million at September 30, 2010, compared to $55.4 million at March 31, 2010. The variance is driven by increases of $14.4 million in available-for-sale securities and $7.3 million in held-to-maturity securities on net purchases of $27.2 million of investment securities offset by principal repayments.

Total loans receivable decreased $50.8 million, or 7.6%, to $619.2 million at September 30, 2010, compared to $670.0 million at March 31, 2010. Principal repayments net of advances and originations across all loan classifications contributed to the decrease, with the largest impact from Construction ($24.7 million), Commercial Real Estate ($12.7 million) and Business ($12.7 million) loans.

The Company’s deferred tax asset at March 31, 2010 was $14.3 million. The components of the deferred tax asset are primarily related to new market tax credit and allowance for loan losses recorded in prior periods. The deferred tax asset increased $6.4 million during the period due primarily to the reported loss for the six month period ended September 30, 2010 and to the additional provision for loan losses. Realization of the deferred tax asset is dependent upon the existence of, or generation of, sufficient taxable income to utilize the deferred tax asset. In assessing the need for a valuation allowance, management considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is “more likely than not” the deferred tax assets will not be realized, management records a valuation allowance. Based on the expected future taxable income of the Company and considering the uncertainties in the current market conditions, management concluded that it is “more likely than not” that the Company will not be able to fully realize the benefit of its deferred tax assets and thus a $20.7 million valuation allowance was recorded during the quarter ended September 30, 2010. This valuation allowance does not preclude the Company from utilizing the accumulated deferred tax asset to offset future earnings.

The Company is currently exploring options to divest its interest in the remaining $7.2 million of additional NMTC tax credits it expects to receive through the period ending March 31, 2014. The Company’s ability to utilize the deferred tax asset generated by NMTC as well as other deferred tax assets depends on its ability to generate sufficient taxable income from operations or from potential tax strategies to generate taxable income in the future. Since the Company has established a valuation allowance on the total amount of its net deferred tax asset, management believes there is greater economic benefit to the Company in divesting its interest in these tax credits.

Total liabilities decreased $24.0 million, or 3.2%, to $719.7 million at September 30, 2010, compared to $743.8 million at March 31, 2010.

Deposits decreased $4.3 million, or 0.7%, to $598.9 million at September 30, 2010, compared to $603.2 million at March 31, 2010. While measurable growth in non-interest bearing checking account balances occurred, savings account and certificate of deposit balances declined slightly.

Advances from the FHLB-NY and other borrowed money decreased by $19.1 million, or 14.5%, to $112.5 million at September 30, 2010, compared to $131.6 million at March 31, 2010, as two fixed-rate borrowings matured.

Total stockholders’ equity decreased $26.6 million, or 43.2%, to $35.0 million at September 30, 2010, compared to $61.7 million at March 31, 2010 due to the $23.4 million loss recorded for the second quarter, partially offset by an increase in unrealized gains on investment securities of $0.3 million.

Asset Quality

At September 30, 2010, non-performing assets totaled $79.8 million, or 10.6% of total assets compared to $47.6 million or 5.9% of total assets at March 31, 2010. Non-performing assets at September 30, 2010 were comprised of $49.9 million of loans 90 days or more past due and non-accruing, $11.2 million of loans that have been deemed to be impaired and $18.7 million of loans classified as a troubled debt restructuring and either not consistently performing in accordance with modified terms or not performing in accordance with modified terms for at least six months. Of the $11.2 million of impaired loans included in non-performing assets, approximately $1.4 million, while having experienced some payment difficulties in the past, are presently current with regard to their payments but are considered impaired and therefore on non-accrual status, due primarily to declines in collateral values. The Company does not anticipate marked improvement in its level of delinquencies until the economy rebounds. However, the Company continues to proactively work with borrowers to address delinquent loans and their impact.

The allowance for loan losses was $17.4 million at September 30, 2010, which represents a ratio of the allowance for loan losses to non-performing loans of 21.9% compared to 30.2% at March 31, 2010. The ratio of the allowance for loan losses to total loans was 2.8% at September 30, 2010 up from 1.8% at March 31, 2010.

About Carver Bancorp, Inc.

Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank, founded in 1948 to serve African-American communities whose residents, businesses and institutions had limited access to mainstream financial services. Carver, the largest African- and Caribbean-American run bank in the United States, operates nine full-service branches in the New York City boroughs of Brooklyn, Manhattan and Queens. For further information, please visit the Company’s website at www.carverbank.com.

Certain statements in this press release are “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject
to uncertainty and changes in circumstances. Actual results may differ materially from those included in these
statements due to a variety of factors, risks and uncertainties. More information about these factors, risks and
uncertainties is contained in our filings with the Securities and Exchange Commission.

CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except per share data)


	September 30,			March 31,
	2010			2010
	(unaudited)
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	27,978		$	37,513
Money market investments		7,836			833

Total cash and cash equivalents		35,814			38,346

Investment securities:
Available-for-sale, at fair value		57,465			43,050
Held-to-maturity, at amortized cost (fair value of $20,761 and $12,603 at September 30, 2010 and March 31, 2010, respectively)		19,623			12,343

Total securities		77,088			55,393

Loans held-for-sale		550			—

Loans receivable:
Real estate mortgage loans		560,147			600,913
Commercial business loans		57,679			67,695
Consumer loans		1,387			1,403

Loans, net		619,213			670,011
Allowance for loan losses		(17,425	)		(12,000	)

Total loans receivable, net		601,788			658,011

Premises and equipment, net		11,821			12,076
Federal Home Loan Bank of New York stock, at cost		3,353			4,107
Bank owned life insurance		9,963			9,803
Accrued interest receivable		3,217			3,539
Core deposit intangibles, net		152			228
Deferred Tax Asset (net of valuation allowance)		—			14,321
Other assets		11,044			9,650

Total assets	$	754,790		$	805,474


LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Savings	$	107,061		$	115,817
Non-Interest Bearing Checking		66,676			58,792
NOW		42,002			43,593
Money Market		68,559			67,122
Certificates of Deposit		314,635			317,925

Total Deposits		598,933			603,249
Advances from the FHLB-New York and other borrowed money		112,542			131,557
Other liabilities		8,273			8,982

Total liabilities		719,748			743,788

Stockholders’ equity:
Preferred stock (par value $0.01 per share, 2,000,000 shares authorized; 18,980 shares, with a liquidation preference of $1,000.00 per share, issued and outstanding as of September 30, 2010 and March 31, 2010)		18,980			18,980
Common stock (par value $0.01 per share: 10,000,000 shares authorized; 2,524,691 shares issued; 2,484,285 and 2,474,719 shares outstanding at September 30, 2010 and March 31, 2010, respectively)		25			25
Additional paid-in capital		24,300			24,374
Retained earnings		(7,535	)		18,806
Treasury stock, at cost (40,406 and 49,972 shares at September 30, 2010 and March 31, 2010, respectively)		(568	)		(697	)
Accumulated other comprehensive income		(160	)		198

Total stockholders’ equity		35,042			61,686

Total liabilities and stockholders’ equity	$	754,790		$	805,474

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,
	2010			2009*			2010			2009*
Interest Income:
Loans	$	8,686		$	9,689		$	17,635		$	18,788
Mortgage-backed securities		525			687			1,112			1,431
Investment securities		94			126			158			187
Money market investments		38			5			58			15

Total interest income		9,343			10,507			18,963			20,421

Interest expense:
Deposits		1,504			1,777			3,021			3,815
Advances and other borrowed money		983			951			2,024			1,936

Total interest expense		2,487			2,728			5,045			5,751


Net interest income		6,856			7,779			13,918			14,670

Provision for loan losses		7,829			1,315			14,077			2,003

Net interest income after provision for loan losses		(973	)		6,464			(159	)		12,667

Non-interest income:
Depository fees and charges		742			782			1,499			1,499
Loan fees and service charges		214			339			435			567
Gain on sale of securities, net		739			—			763			—
Gain on sale of loans, net		4			—			8			4
Gain (Loss) on sale of real estate owned		—			—			—			—
New Market Tax Credit fees		370			38			1,181			75
Lower of Cost or market adjustment on loans held for sale		—			(2,136	)		—			(2,136	)
Other		176			304			221			471

Total non-interest income		2,245			(673	)		4,107			480

Non-interest expense:
Employee compensation and benefits		2,901			3,194			6,107			6,313
Net occupancy expense		975			1,155			1,952			2,142
Equipment, net		548			416			1,085			1,000
Consulting fees		326			162			545			369
Federal deposit insurance premiums		394			255			750			1,048
Goodwill Impairment		—			—			—			—
Other		2,492			1,756			4,662			3,123

Total non-interest expense		7,636			6,938			15,101			13,995

Loss before income taxes		(6,364	)		(1,147	)		(11,151	)		(849	)
Income tax (benefit )/expense		16,998			(838	)		14,702			(1,235	)

Net (loss) income	$	(23,362	)	$	(309	)	$	(25,853	)	$	386


Earnings per common share:	$	(9.43	)	$	(0.22	)	$	(10.53	)	$	(0.04	)


*		As restated

CARVER BANCORP, INC. AND SUBSIDIARIES
Non Performing Asset Table
(In thousands)


	September			June			March			December			September
	2010			2010			2010			2009			2009
Loans accounted for on a non-accrual basis (1):
Gross loans receivable:
One- to four-family	$	14,583		$	14,320		$	7,682		$	5,009		$	3,297
Multifamily		14,103			16,923			10,334			6,406			5,988
Non-residential		11,189			13,249			6,315			3,831			4,933
Construction		36,145			34,792			17,413			12,719			9,808
Business		3,699			7,031			5,799			5,138			2,760
Consumer		37			15			28			35			31

Total non-accrual loans		79,756			86,330			47,571			33,138			26,817


Other non-performing assets (2):
Real estate owned		19			1			66			28			67

Total other non-performing assets		19			1			66			28			67

Total non-performing assets (3)	$	79,775		$	86,331		$	47,637		$	33,166		$	26,884


Accruing loans contractually past due > 90 days (4)		1,765			478			1,411			305			987


Non-performing loans to total loans		12.88	%		13.34	%		7.10	%		4.86	%		3.92	%
Non-performing assets to total assets		10.57	%		10.74	%		5.91	%		4.12	%		3.33	%


(1)		Non-accrual status denotes any loan where the delinquency exceeds 90 days past due and in the opinion of management the collection of additional interest is doubtful. Payments received on a non-accrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on assessment of the ability to collect on the loan.

(2)		Other non-performing assets generally represent property acquired by the Bank in settlement of loans (i.e., through foreclosure, repossession or as an in-substance foreclosure). These assets are recorded at the lower of their fair value or the cost to acquire.

(3)		Troubled debt restructured loans performing in accordance with their modified terms for less than six months and those not performing to their modified terms are considered non-accrual and are included in the non-accrual category in the table above. TDR loans that have performed in accordance with their modified terms for a period of at least six months are generally considered performing loans and are not presented in the table above.

(4)		Loans 90 days or more past due and still accruing, which were not included in the non-performing category, are presented in the above table.

CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(In thousands)
(Unaudited)


	For the Three Months Ended September 30,
	2010							2009
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Interest Earning Assets:
Loans (1)	$	641,156	$	8,686		5.42	%	$	683,189	$	9,689		5.67	%
Mortgage-backed securities		61,838		525		3.40	%		66,689		687		4.11	%
Investment securities (2)		3,469		127		14.61	%		5,008		129		10.21	%
Other investments and federal funds sold		3,980		5		0.51	%		1,017		2		0.73	%

Total interest-earning assets		710,443		9,343		5.26	%		755,903		10,507		5.56	%
Non-interest-earning assets		94,681							50,928

Total assets	$	805,124						$	806,831


Interest Bearing Liabilities:
Deposits:
Now demand	$	61,917		32		0.20	%	$	49,900		19		0.15	%
Savings and clubs		109,254		74		0.27	%		117,820		65		0.22	%
Money market		69,967		192		1.10	%		46,697		155		1.32	%
Certificates of deposit		312,460		1,198		1.53	%		332,723		1,529		1.82	%
Mortgagors deposits		2,257		8		1.49	%		2,286		9		1.60	%

Total deposits		555,855		1,504		1.08	%		549,426		1,777		1.28	%
Borrowed money		114,110		983		3.45	%		125,114		951		3.01	%

Total interest-bearing liabilities		669,965		2,487		1.48	%		674,540		2,728		1.60	%
Non-interest-bearing liabilities:
Demand		68,257							58,517
Other liabilities		7,691							8,552

Total liabilities		745,913							741,609
Minority Interest		—							—
Stockholders’ equity		59,211							65,222

Total liabilities & stockholders’ equity	$	805,124						$	806,831

Net interest income			$	6,857						$	7,779


Average interest rate spread						3.78	%						3.96	%


Net interest margin						3.86	%						4.12	%


(1)		Includes non-accrual loans

(2)		Includes FHLB-NY stock

CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(In thousands)
(Unaudited)


	Six months ended September 30,
	2010							2009
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Interest Earning Assets:
Loans (1)	$	649,255	$	17,635		5.43	%	$	675,253	$	18,788		5.56	%
Mortgage-backed securities		62,379		1,112		3.56	%		69,262		1,431		4.13	%
Investment securities (2)		3,737		206		11.01	%		4,901		194		7.89	%
Other investments and federal funds sold		2,681		10		0.78	%		1,023		8		1.56	%

Total interest-earning assets		718,052		18,963		5.28	%		750,439		20,421		5.44	%
Non-interest-earning assets		91,628							50,989

Total assets	$	809,680						$	801,428


Interest Bearing Liabilities:
Deposits:
Now demand	$	52,061		63		0.24	%	$	52,025		41		0.16	%
Savings and clubs		112,679		147		0.26	%		118,526		131		0.22	%
Money market		70,388		415		1.18	%		45,194		302		1.33	%
Certificates of deposit		314,705		2,374		1.51	%		329,187		3,320		2.01	%
Mortgagors deposits		2,712		22		1.65	%		2,587		21		1.60	%

Total deposits		552,545		3,021		1.09	%		547,519		3,815		1.39	%
Borrowed money		119,298		2,024		3.39	%		122,708		1,936		3.15	%

Total interest-bearing liabilities		671,843		5,045		1.50	%		670,227		5,751		1.71	%
Non-interest-bearing liabilities:
Demand		64,311							59,237
Other liabilities		8,142							8,184

Total liabilities		744,296							737,648
Minority Interest		—							—
Stockholders’ equity		65,384							63,780

Total liabilities & stockholders’ equity	$	809,680						$	801,428

Net interest income			$	13,918						$	14,669


Average interest rate spread						3.78	%						3.73	%


Net interest margin						3.88	%						3.91	%


(1)		Includes non-accrual loans

(2)		Includes FHLB-NY stock

CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED SELECTED KEY RATIOS
(Unaudited)


	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Selected Statistical Data:

Return on average assets (1)		-11.61	%		-0.15	%		-6.39	%		0.10	%
Return on average equity (2)		-157.82	%		-1.89	%		-79.08	%		1.21	%
Net interest margin (3)		3.86	%		4.12	%		3.88	%		3.91	%
Interest rate spread (4)		3.77	%		3.96	%		3.78	%		3.73	%
Efficiency ratio (5)		83.90	%		97.62	%		83.77	%		92.38	%
Operating expenses to average assets (6)		3.79	%		3.44	%		3.73	%		3.49	%
Average equity to average assets (7)		7.35	%		8.08	%		8.08	%		7.96	%

Average interest-earning assets to average interest-bearing liabilities		1.06	x		1.12	x		1.06	x		1.10	x

Earnings per share — basic	$	(9.43	)	$	(0.22	)	$	(10.53	)	$	(0.04	)
Earnings per share — diluted		N/A			N/A			N/A			N/A
Average shares outstanding — basic		2,483,025			2,474,719			2,482,883			2,472,383
Average shares outstanding — diluted		2,537,395			2,493,145			2,537,252			2,490,809
Cash dividends	$	—		$	0.10		$	0.025		$	0.20

	September 30,
	2010			2009*
Capital Ratios:
Tier I leverage capital ratio (8)		6.44	%		8.42	%
Tier I risk-based capital ratio (8)		8.62	%		10.09	%
Total risk-based capital ratio (8)		10.77	%		11.31	%

Asset Quality Ratios:
Non performing assets to total assets (9)		10.57	%		3.92	%
Non performing loans to total loans receivable (9)		12.88	%		3.33	%
Allowance for loan losses to total loans net		2.81	%		1.19	%
Allowance for loan losses to non-performing loans		21.85	%		30.29	%


(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 divided by sum of net interest income plus non-interest income.

(6)		Non-interest expenses, annualized, divided by average total assets.

(7)		Average equity divided by average assets for the period ended.

(8)		These ratios reflect consolidated bank only.

(9)		Non performing assets consist of non-accrual loans, impaired loans and real estate owned.

*		As restated