þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware (State or Other Jurisdiction of Incorporation or Organization) | 13-3904174 (I.R.S. Employer Identification No.) | |
75 West 125th Street, New York, New York (Address of Principal Executive Offices) | 10027 (Zip Code) |
o Large Accelerated Filer | o Accelerated Filer | o Non-accelerated Filer | x Smaller Reporting Company |
Common Stock, par value $0.01 | 3,695,320 | |
Class | Outstanding at February 14, 2013 |
Page | |
Exhibit 11 | |
Exhibit 31.1 | |
Exhibit 31.2 | |
Exhibit 32.1 | |
Exhibit 32.2 | |
Exhibits 101 |
$ in thousands except per share data | December 31, 2012 | March 31, 2012 | |||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 114,292 | $ | 89,872 | |||
Money market investments | 7,558 | 1,825 | |||||
Total cash and cash equivalents | 121,850 | 91,697 | |||||
Restricted cash | 6,416 | 6,415 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 109,936 | 85,106 | |||||
Held-to-maturity, at amortized cost (fair value of $10,191 and $11,774 at December 31, 2012 and March 31, 2012, respectively) | 9,565 | 11,081 | |||||
Total investments | 119,501 | 96,187 | |||||
Loans held-for-sale (“HFS”) | 18,991 | 29,626 | |||||
Loans receivable: | |||||||
Real estate mortgage loans | 330,655 | 367,611 | |||||
Commercial business loans | 33,535 | 43,989 | |||||
Consumer loans | 264 | 1,258 | |||||
Loans, net | 364,454 | 412,858 | |||||
Allowance for loan losses | (14,483 | ) | (19,821 | ) | |||
Total loans receivable, net | 349,971 | 393,037 | |||||
Premises and equipment, net | 8,885 | 9,573 | |||||
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost | 3,368 | 2,168 | |||||
Accrued interest receivable | 2,359 | 2,256 | |||||
Other assets | 9,297 | 10,271 | |||||
Total assets | $ | 640,638 | $ | 641,230 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Savings | $ | 96,226 | $ | 101,079 | |||
Non-Interest Bearing Checking | 61,676 | 67,202 | |||||
NOW | 25,044 | 28,325 | |||||
Money Market | 113,417 | 109,404 | |||||
Certificates of Deposit | 205,286 | 226,587 | |||||
Total deposits | 501,649 | 532,597 | |||||
Advances from the FHLB-NY and other borrowed money | 73,403 | 43,429 | |||||
Other liabilities | 9,986 | 8,585 | |||||
Total liabilities | $ | 585,038 | $ | 584,611 | |||
Stockholders’ equity: | |||||||
Preferred stock, (par value $0.01, per share), 45,118 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding | 45,118 | 45,118 | |||||
Common stock (par value $0.01 per share: 10,000,000 shares authorized; 3,697,264 issued; 3,695,320 and 3,695,174 shares outstanding at December 31, 2012 and March 31, 2012, respectively) | 61 | 61 | |||||
Additional paid-in capital | 55,574 | 54,068 | |||||
Accumulated deficit | (45,125 | ) | (45,091 | ) | |||
Non-controlling interest | 95 | 2,751 | |||||
Treasury stock, at cost (1,944 shares at December 31, 2012 and 2,090 and March 31, 2012, respectively). | (417 | ) | (447 | ) | |||
Accumulated other comprehensive income | 294 | 159 | |||||
Total stockholders’ equity | 55,600 | 56,619 | |||||
Total liabilities and stockholders equity | $ | 640,638 | $ | 641,230 | |||
See accompanying notes to consolidated financial statements |
CARVER BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) | ||||||||||||||||
$ in thousands | Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Interest Income: | ||||||||||||||||
Loans | $ | 5,325 | $ | 6,416 | $ | 16,398 | $ | 20,076 | ||||||||
Mortgage-backed securities | 215 | 279 | 783 | 1,018 | ||||||||||||
Investment securities | 349 | 114 | 857 | 340 | ||||||||||||
Money market investments | 38 | 102 | 156 | 151 | ||||||||||||
Total interest income | 5,927 | 6,911 | 18,194 | 21,585 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 868 | 1,069 | 2,750 | 3,012 | ||||||||||||
Advances and other borrowed money | 342 | 785 | 1,033 | 2,560 | ||||||||||||
Total interest expense | 1,210 | 1,854 | 3,783 | 5,572 | ||||||||||||
Net interest income | 4,717 | 5,057 | 14,411 | 16,013 | ||||||||||||
(Release) provision for loan losses | (398 | ) | 113 | 386 | 12,290 | |||||||||||
Net interest income after provision for loan losses | 5,115 | 4,944 | 14,025 | 3,723 | ||||||||||||
Non-interest income: | ||||||||||||||||
Depository fees and charges | 964 | 740 | 2,652 | 2,212 | ||||||||||||
Loan fees and service charges | 170 | 203 | 565 | 689 | ||||||||||||
Loss on REO, net | — | (91 | ) | (288 | ) | (216 | ) | |||||||||
Gain on sale of securities, net | 60 | — | 60 | |||||||||||||
Gain on sales of loans, net | 1,109 | 19 | 1,714 | 154 | ||||||||||||
New Market Tax Credit (“NMTC”) fees | — | — | 625 | — | ||||||||||||
Lower of cost or market adjustment on loans held for sale | — | (530 | ) | — | (905 | ) | ||||||||||
Other | 238 | 212 | 587 | 539 | ||||||||||||
Total non-interest income | 2,541 | 553 | 5,915 | 2,473 | ||||||||||||
Non-interest expense: | ||||||||||||||||
Employee compensation and benefits | 2,819 | 3,006 | 8,243 | 9,188 | ||||||||||||
Net occupancy expense | 910 | 903 | 2,684 | 2,805 | ||||||||||||
Equipment, net | 314 | 329 | 889 | 1,029 | ||||||||||||
Data processing | 326 | 216 | 842 | 596 | ||||||||||||
Consulting fees | 63 | 165 | 243 | 370 | ||||||||||||
Federal deposit insurance premiums | 320 | 369 | 994 | 1,177 | ||||||||||||
Other | 2,552 | 2,788 | 6,933 | 7,531 | ||||||||||||
Total non-interest expense | 7,304 | 7,776 | 20,828 | 22,696 | ||||||||||||
Gain/(Loss) before income taxes | 352 | (2,279 | ) | (888 | ) | (16,500 | ) | |||||||||
Income tax expense (benefit) | 68 | (1,004 | ) | 264 | (927 | ) | ||||||||||
Net income/(loss) before attribution of noncontrolling interest | 284 | (1,275 | ) | (1,152 | ) | (15,573 | ) | |||||||||
Non Controlling interest, net of taxes | (190 | ) | (595 | ) | (1,126 | ) | 687 | |||||||||
Net income/(loss) | $ | 474 | $ | (680 | ) | $ | (26 | ) | $ | (16,260 | ) | |||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Change in unrealized gain/loss of securities available for sale | 135 | 203 | 437 | 298 | ||||||||||||
Change in pension obligations | — | — | (302 | ) | — | |||||||||||
Total other comprehensive income (loss), net of tax | 135 | 203 | 135 | 298 | ||||||||||||
Total comprehensive income (loss), net of tax | $ | 609 | $ | (477 | ) | $ | 109 | $ | (15,962 | ) | ||||||
Earnings/(loss) per common share: | ||||||||||||||||
Basic | $ | 0.13 | $ | (0.26 | ) | $ | (0.01 | ) | $ | (16.81 | ) | |||||
Diluted | $ | 0.13 | N/A | N/A | N/A |
$ in thousands | Preferred Stock | Common Stock | Additional Paid- In Capital | Treasury Stock | Non- controlling interest | Accumulated deficit | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||||||||
Balance—March 31, 2012 | $ | 45,118 | $ | 61 | $ | 54,068 | $ | (447 | ) | $ | 2,751 | $ | (45,091 | ) | $ | 159 | $ | 56,619 | ||||||||||||||
Net loss | — | — | — | — | — | (26 | ) | — | (26 | ) | ||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | — | — | 135 | 135 | ||||||||||||||||||||||||
Transfer between Non Controlling and Controlling Interest | — | — | 1,530 | — | (1,530 | ) | — | — | — | |||||||||||||||||||||||
Loss attributable to non controlling interest | — | — | — | — | (1,126 | ) | — | — | (1,126 | ) | ||||||||||||||||||||||
Treasury stock activity | — | — | (24 | ) | 30 | — | (8 | ) | — | (2 | ) | |||||||||||||||||||||
Balance— December 31, 2012 | $ | 45,118 | $ | 61 | $ | 55,574 | $ | (417 | ) | $ | 95 | $ | (45,125 | ) | $ | 294 | $ | 55,600 |
$ in thousands | Nine Months Ended December 31, | |||||||
2012 | 2011 | |||||||
OPERATING ACTIVITIES | ||||||||
Net loss before attribution of noncontrolling interests | $ | (1,152 | ) | $ | (15,573 | ) | ||
Noncontrolling interest, net of taxes | (1,126 | ) | 687 | |||||
Net loss | (26 | ) | (16,260 | ) | ||||
Adjustments to reconcile net loss to net cash from operating activities: | ||||||||
Provision for loan losses | 386 | 12,290 | ||||||
Stock based compensation expense | — | 54 | ||||||
Depreciation and amortization expense | 844 | 1,060 | ||||||
Amortization of intangibles | — | 76 | ||||||
Loss on real estate owned | 288 | 216 | ||||||
Gain on sale of securities, net | (60 | ) | — | |||||
Gain on sale of loans, net | (1,714 | ) | (154 | ) | ||||
Market adjustment on held for sale loans | — | 905 | ||||||
Proceeds from sale of loans held-for-sale | 20,576 | 26,102 | ||||||
Assets repurchased from third parties | (1,952 | ) | — | |||||
(Increase) decrease in accrued interest receivable | (103 | ) | 500 | |||||
Amortization and accretion of loan premiums and discounts and deferred charges | (308 | ) | (210 | ) | ||||
Amortization and accretion of premiums and discounts — securities | 723 | 327 | ||||||
Decrease (increase) in other assets | 2,125 | (432 | ) | |||||
Increase in other liabilities | 83 | 1,047 | ||||||
Net cash provided by operating activities | 20,862 | 25,521 | ||||||
INVESTING ACTIVITIES | ||||||||
Purchases of securities: Available-for-sale | (53,855 | ) | (19,625 | ) | ||||
Proceeds from principal payments, maturities, calls and sales of securities: Available-for-sale | 28,767 | 17,675 | ||||||
Proceeds from principal payments, maturities and calls of securities: Held-to-maturity | 1,488 | 6,074 | ||||||
Originations of loans held-for-investment | (17,366 | ) | (19,343 | ) | ||||
Principal collections on loans | 50,674 | 80,285 | ||||||
Proceeds on sale of loans | 1,718 | 2,258 | ||||||
Increase in restricted cash | — | (6,415 | ) | |||||
(Purchase)/redemption of FHLB-NY stock | (1,200 | ) | (616 | ) | ||||
Purchase of premises and equipment | (156 | ) | (140 | ) | ||||
Proceeds from sale of real estate owned | 195 | 563 | ||||||
Net cash (used in) provided by investing activities | 10,265 | 60,716 | ||||||
FINANCING ACTIVITIES | ||||||||
Net decrease in deposits | (30,948 | ) | (75,503 | ) | ||||
Net increase in FHLB-NY advances and other borrowings | 29,974 | 796 | ||||||
Capital raise | — | 51,432 | ||||||
Dividends paid | — | (364 | ) | |||||
Net cash used in financing activities | (974 | ) | (23,639 | ) | ||||
Net (decrease) increase in cash and cash equivalents | 30,153 | 62,598 | ||||||
Cash and cash equivalents at beginning of period | 91,697 | 44,077 | ||||||
Cash and cash equivalents at end of period | $ | 121,850 | $ | 106,675 | ||||
Supplemental information: | ||||||||
Noncash Transfers- | ||||||||
Change in unrealized loss on valuation of available-for-sale investments, net | $ | 162 | $ | 349 | ||||
Transfers from loans held-for-investment to loans held-for-sale | $ | 8,884 | $ | 40,222 | ||||
Cash paid for- | ||||||||
Interest | $ | 3,480 | $ | 5,851 | ||||
Income taxes | $ | 49 | $ | 808 |
• | 1-4 Family |
• | Construction |
• | Multifamily |
• | Commercial Real Estate |
• | Business Loans |
• | SBA Loans |
• | Other (Consumer and Overdraft Accounts) |
• | Pass |
• | Special Mention |
• | Substandard |
• | Doubtful |
• | Loss |
1. | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-offs, and recovery practices not considered elsewhere in estimating credit losses (Policy & Procedures). |
2. | Changes in relevant economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments (Economy). |
3. | Changes in the nature or volume of the loan portfolio and in the terms of loans (Nature & Volume). |
4. | Changes in the experience, ability, and depth of lending management and other relevant staff (Management). |
5. | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified loans (Problem Assets). |
6. | Changes in the quality of the loan review system (Loan Review). |
7. | Changes in the value of underlying collateral for collateral-dependent loans (Collateral Values). |
8. | The existence and effect of any concentrations of credit and changes in the level of such concentrations (Concentrations). |
9. | The effect of other external forces such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio (External Forces). |
1. | The present value of expected future cash flows discounted at the loan's effective interest rate; |
2. | The loan's observable market price; or |
3. | The fair value of the collateral if the loan is collateral dependent. |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Earnings/(loss) per common share | ||||||||||||||||
Net income/(loss) | $ | 474 | $ | (680 | ) | $ | (26 | ) | $ | (16,260 | ) | |||||
Less: Capital Purchase Program "CPP" Preferred Dividends | — | — | — | 288 | ||||||||||||
Net income/(loss) available to common shareholders | $ | 474 | $ | (680 | ) | $ | (26 | ) | $ | (16,548 | ) | |||||
Weighted average common shares outstanding | 3,695,653 | 2,621,340 | 3,695,616 | 984,348 | ||||||||||||
Basic earnings/(loss) per common share | $ | 0.13 | $ | (0.26 | ) | $ | (0.01 | ) | $ | (16.81 | ) | |||||
Diluted earnings per common share | $ | 0.13 | N/A | N/A | N/A |
$ in thousands | Amortized | Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair-Value | |||||||||||||
Available-for-Sale: | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government National Mortgage Association | $ | 23,019 | 168 | (182 | ) | 23,005 | ||||||||||
Federal Home Loan Mortgage Corporation | 6,813 | 107 | — | 6,920 | ||||||||||||
Federal National Mortgage Association | 4,669 | 136 | — | 4,805 | ||||||||||||
Other | 50 | — | — | 50 | ||||||||||||
Total mortgage-backed securities | 34,551 | 411 | (182 | ) | 34,780 | |||||||||||
U.S. Government Agency Securities | 41,983 | 309 | (42 | ) | 42,250 | |||||||||||
U.S. Government Securities | 2,800 | 2 | — | 2,802 | ||||||||||||
Corporates Bonds | 1,911 | 111 | — | 2,022 | ||||||||||||
Asset-backed Securities | 15,252 | 97 | — | 15,349 | ||||||||||||
Small Business Association | 1,940 | 39 | — | 1,979 | ||||||||||||
Other | 10,691 | 63 | — | 10,754 | ||||||||||||
Total available-for-sale | 109,128 | 1,032 | (224 | ) | 109,936 | |||||||||||
Held-to-Maturity: | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government National Mortgage Association | 5,660 | 429 | — | 6,089 | ||||||||||||
Federal Home Loan Mortgage Corporation | 2,479 | 114 | — | 2,593 | ||||||||||||
Federal National Mortgage Association | 1,426 | 83 | — | 1,509 | ||||||||||||
Total held-to-maturity mortgage-backed securities | 9,565 | 626 | — | 10,191 | ||||||||||||
Total securities | $ | 118,693 | $ | 1,658 | $ | (224 | ) | $ | 120,127 |
$ in thousands | Amortized | Gross Unrealized | Estimated | |||||||||||||
Cost | Gains | Losses | Fair-Value | |||||||||||||
Available-for-Sale: | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government National Mortgage Association | $ | 31,100 | $ | 269 | $ | (23 | ) | $ | 31,346 | |||||||
Federal Home Loan Mortgage Corporation | 7,468 | 8 | (1 | ) | 7,475 | |||||||||||
Federal National Mortgage Association | 7,214 | 50 | (1 | ) | 7,263 | |||||||||||
Total mortgage-backed securities | 45,782 | 327 | (25 | ) | 46,084 | |||||||||||
U.S. Government Agency Securities | 23,176 | 91 | (63 | ) | 23,204 | |||||||||||
U.S. Government Securities | 3,356 | 6 | (1 | ) | 3,361 | |||||||||||
Corporate Bonds | 1,890 | 58 | — | 1,948 | ||||||||||||
Other | 10,536 | — | (27 | ) | 10,509 | |||||||||||
Total available-for-sale | 84,740 | 482 | (116 | ) | 85,106 | |||||||||||
Held-to-Maturity: | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Government National Mortgage Association | 6,659 | 473 | — | 7,132 | ||||||||||||
Federal Home Loan Mortgage Corporation | 2,794 | 134 | — | 2,928 | ||||||||||||
Federal National Mortgage Association | 1,628 | 86 | — | 1,714 | ||||||||||||
Total held-to-maturity mortgage-backed securities | 11,081 | 693 | — | 11,774 | ||||||||||||
Total securities | $ | 95,821 | $ | 1,175 | $ | (116 | ) | $ | 96,880 |
$ in thousands | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | |||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Mortgage-backed securities | $ | (88 | ) | $ | 7,720 | $ | (94 | ) | $ | 7,090 | $ | (182 | ) | $ | 14,810 | |||||||||
U.S. Government Agency Securities | (42 | ) | 4,956 | — | — | (42 | ) | 4,956 | ||||||||||||||||
U.S. Government Securities | — | 1,250 | — | — | — | 1,250 | ||||||||||||||||||
Total available-for-sale securities | (130 | ) | 13,926 | (94 | ) | 7,090 | (224 | ) | 21,016 |
$ in thousands | Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | |||||||||||||||||||
Available-for-Sale: | ||||||||||||||||||||||||
Mortgage-backed securities | $ | (25 | ) | $ | 13,699 | $ | — | $ | — | $ | (25 | ) | $ | 13,699 | ||||||||||
U.S. Government Agency Securities | (63 | ) | 9,917 | — | — | (63 | ) | 9,917 | ||||||||||||||||
U.S. Government Securities | (1 | ) | 1,555 | — | — | (1 | ) | 1,555 | ||||||||||||||||
Others | (27 | ) | 9,973 | — | — | (27 | ) | 9,973 | ||||||||||||||||
Total available-for-sale securities | (116 | ) | 35,144 | — | — | (116 | ) | 35,144 |
$ in thousands | Amortized Cost | Fair Value | Weighted Average Yield | |||||||
Available-for-Sale: | ||||||||||
Less than one year | $ | 5,799 | $ | 5,802 | 0.35 | % | ||||
One through five years | 6,895 | 7,058 | 1.90 | % | ||||||
Five through ten years | 29,313 | 29,456 | 1.54 | % | ||||||
After ten years | 67,121 | 67,620 | 1.36 | % | ||||||
Total | 109,128 | 109,936 | 1.39 | % | ||||||
Held-to-maturity: | ||||||||||
Five through ten years | 191 | 199 | 3.91 | % | ||||||
After ten years | 9,374 | 9,992 | 4.00 | % | ||||||
Total | $ | 9,565 | $ | 10,191 | 4.00 | % |
$ in thousands | December 31, 2012 | March 31, 2012 | ||||||||||||
Amount | Percent | Amount | Percent | |||||||||||
Gross loans receivable: | ||||||||||||||
One- to four-family | $ | 61,953 | 16.92 | % | $ | 66,313 | 15.99 | % | ||||||
Multifamily | 66,982 | 18.29 | % | 78,859 | 19.01 | % | ||||||||
Commercial real estate | 201,728 | 55.09 | % | 207,505 | 50.02 | % | ||||||||
Construction | 1,228 | 0.34 | % | 16,471 | 3.97 | % | ||||||||
Business | 34,021 | 9.29 | % | 44,424 | 10.71 | % | ||||||||
Consumer and other (1) | 264 | 0.07 | % | 1,258 | 0.30 | % | ||||||||
Total loans receivable | $ | 366,176 | 100.00 | % | $ | 414,830 | 100.00 | % | ||||||
Add: | ||||||||||||||
Premium on loans | 141 | 137 | ||||||||||||
Less: | ||||||||||||||
Deferred fees and loan discounts | (1,863 | ) | (2,109 | ) | ||||||||||
Allowance for loan losses | (14,483 | ) | (19,821 | ) | ||||||||||
Total loans receivable, net | $ | 349,971 | $ | 393,037 | ||||||||||
Loans held-for-sale | $ | 18,991 | $ | 29,626 |
$ in thousands | One-to-four family Residential | Multi-Family Mortgage | Commercial Real Estate | Construction | Business | Consumer and Other | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Beginning Balance | $ | 4,305 | $ | 5,409 | $ | 6,709 | $ | 1,532 | $ | 1,786 | $ | 80 | $ | 19,821 | ||||||||||||||
Charge-offs | 2,103 | 226 | 1,149 | 151 | 2,152 | 3 | 5,784 | |||||||||||||||||||||
Recoveries | — | — | — | 22 | 34 | 4 | 60 | |||||||||||||||||||||
Provision for Loan Losses | 2,394 | (4,155 | ) | (921 | ) | (1,403 | ) | 4,521 | (50 | ) | 386 | |||||||||||||||||
Ending Balance | $ | 4,596 | $ | 1,028 | $ | 4,639 | $ | — | $ | 4,189 | $ | 31 | $ | 14,483 | ||||||||||||||
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment | 4,217 | 1,028 | 4,182 | — | 2,368 | 31 | 11,826 | |||||||||||||||||||||
Allowance for Loan Losses Ending Balance: individually evaluated for impairment | 379 | — | 457 | — | 1,821 | — | 2,657 | |||||||||||||||||||||
The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the nine month period ended December 31, 2012. | ||||||||||||||||||||||||||||
Loan Receivables Ending Balance | $ | 61,726 | $ | 67,058 | $ | 200,641 | $ | 1,230 | $ | 33,519 | $ | 280 | $ | 364,454 | ||||||||||||||
Ending Balance: collectively evaluated for impairment | 54,939 | 67,058 | 184,742 | — | 27,757 | 280 | 334,776 | |||||||||||||||||||||
Ending Balance: individually evaluated for impairment | 6,787 | — | 15,899 | 1,230 | 5,762 | — | 29,678 |
$ in thousands | One-to-four family Residential | Multi-Family Mortgage | Commercial Real Estate | Construction | Business | Consumer and Other | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Beginning Balance | $ | 2,923 | $ | 6,223 | $ | 3,999 | $ | 6,944 | $ | 2,965 | $ | 93 | $ | 23,148 | ||||||||||||||
Charge-offs | 857 | 5,588 | 4,285 | 5,692 | 398 | 8 | 16,828 | |||||||||||||||||||||
Recoveries | — | 6 | 2 | 1,685 | 109 | — | 1,802 | |||||||||||||||||||||
Provision for Loan Losses | 1,143 | 7,047 | 6,089 | (800 | ) | (1,203 | ) | 14 | 12,290 | |||||||||||||||||||
Ending Balance | $ | 3,209 | $ | 7,688 | $ | 5,805 | $ | 2,137 | $ | 1,473 | $ | 99 | $ | 20,411 |
$ in thousands | One-to-four family Residential | Multi-Family Mortgage | Commercial Real Estate | Construction | Business | Consumer and Other | Total | |||||||||||||||||||||
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment | $ | 4,098 | $ | 5,348 | $ | 6,177 | $ | 1,484 | $ | 1,685 | $ | 80 | $ | 18,872 | ||||||||||||||
Allowance for Loan Losses Ending Balance: individually evaluated for impairment | 207 | 61 | 532 | 48 | 101 | — | 949 | |||||||||||||||||||||
The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment as of March 31, 2012. | ||||||||||||||||||||||||||||
Loan Receivables Ending Balance | 66,172 | 78,984 | 206,022 | 16,433 | 43,982 | 1,265 | 412,858 | |||||||||||||||||||||
Ending Balance: collectively evaluated for impairment | 63,866 | 77,976 | 185,249 | 10,346 | 38,124 | 1,265 | 376,826 | |||||||||||||||||||||
Ending Balance: individually evaluated for impairment | 2,306 | 1,008 | 20,773 | 6,087 | 5,858 | — | 36,032 |
$ in thousands | December 31, 2012 | March 31, 2012 | ||||
Loans accounted for on a non-accrual basis: | ||||||
Gross loans receivable: | ||||||
One-to-four family | $ | 7,249 | $ | 6,988 | ||
Multifamily | 483 | 2,923 | ||||
Commercial real estate | 18,872 | 24,467 | ||||
Construction | 1,230 | 11,325 | ||||
Business | 7,718 | 8,862 | ||||
Consumer and other | 14 | 23 | ||||
Total non-accrual loans | $ | 35,566 | $ | 54,588 |
$ in thousands | Multi-Family Mortgage | Commercial Real Estate | Construction | Business | ||||||||||||
Credit Risk Profile by Internally Assigned Grade: | ||||||||||||||||
Pass | $ | 65,620 | $ | 161,665 | $ | — | $ | 20,032 | ||||||||
Special Mention | — | 3,740 | — | 4,300 | ||||||||||||
Substandard | 1,438 | 35,236 | 1,230 | 9,187 | ||||||||||||
Doubtful | — | — | — | — | ||||||||||||
Loss | — | — | — | — | ||||||||||||
Total | $ | 67,058 | $ | 200,641 | $ | 1,230 | $ | 33,519 |
$ in thousands | One-to-four family Residential | Consumer and Other | ||||||
Credit Risk Profile Based on Payment Activity: | ||||||||
Performing | $ | 54,477 | $ | 266 | ||||
Non-Performing | 7,249 | 14 | ||||||
Total | $ | 61,726 | $ | 280 |
$ in thousands | Multi-Family Mortgage | Commercial Real Estate | Construction | Business | |||||||||||
Credit Risk Profile by Internally Assigned Grade: | |||||||||||||||
Pass | $ | 74,900 | $ | 167,606 | $ | 201 | $ | 25,963 | |||||||
Special Mention | 381 | 1,456 | 6,108 | 4,954 | |||||||||||
Substandard | 3,703 | 36,959 | 10,124 | 12,551 | |||||||||||
Doubtful | — | — | — | 514 | |||||||||||
Loss | — | — | — | — | |||||||||||
Total | $ | 78,984 | $ | 206,021 | $ | 16,433 | $ | 43,982 | |||||||
$ in thousands | One-to-four family Residential | Consumer and Other | |||||||||||||
Credit Risk Profile Based on Payment Activity: | |||||||||||||||
Performing | $ | 59,185 | $ | 1,242 | |||||||||||
Non-Performing | 6,987 | 23 | |||||||||||||
Total | $ | 66,172 | $ | 1,265 |
$ in thousands | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days | Total Past Due | Impaired(1) | Non-performing TDR | Performing TDR (2) | Current | Total Financing Receivables | |||||||||||||||||||||||||||
One-to-four family residential | $ | 4,783 | $ | 574 | $ | 4,180 | $ | 9,537 | $ | — | $ | 3,069 | $ | 2,675 | $ | 46,445 | $ | 61,726 | ||||||||||||||||||
Multi-family mortgage | 1,579 | 1,144 | 483 | 3,206 | — | — | 616 | 63,236 | 67,058 | |||||||||||||||||||||||||||
Commercial real estate | 11,516 | 1,681 | 4,887 | 18,084 | 3,618 | 10,367 | 1,299 | 167,273 | 200,641 | |||||||||||||||||||||||||||
Construction | — | — | — | — | 1,230 | — | — | — | 1,230 | |||||||||||||||||||||||||||
Business | 576 | 1,713 | 2,465 | 4,754 | 686 | 4,567 | 509 | 23,003 | 33,519 | |||||||||||||||||||||||||||
Consumer and other | 31 | 6 | 14 | 51 | — | — | — | 229 | 280 | |||||||||||||||||||||||||||
Total | $ | 18,485 | $ | 5,118 | $ | 12,029 | $ | 35,632 | $ | 5,534 | $ | 18,003 | 5,099 | $ | 300,186 | $ | 364,454 |
$ in thousands | 30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days | Total Past Due | Impaired (1) | Non-performing TDR | Performing TDR (2) | Current | Total Financing Receivables | ||||||||||||||||||||||||||
One-to-four family residential | $ | 2,381 | $ | — | $ | 4,681 | $ | 7,062 | $ | — | $ | 2,306 | $ | 2,690 | 54,114 | 66,172 | |||||||||||||||||||
Multi-family mortgage | 3,220 | 427 | 1,915 | 5,562 | — | 1,008 | — | 72,414 | 78,984 | ||||||||||||||||||||||||||
Commercial real estate | 11,455 | — | 9,406 | 20,861 | 2,000 | 13,061 | 430 | 169,669 | 206,022 | ||||||||||||||||||||||||||
Construction | — | — | 11,086 | 11,086 | — | 239 | — | 5,108 | 16,433 | ||||||||||||||||||||||||||
Business | 3,937 | 954 | 4,353 | 9,244 | 81 | 4,428 | 341 | 29,888 | 43,982 | ||||||||||||||||||||||||||
Consumer and other | 37 | 1 | 23 | 61 | — | — | — | 1,204 | 1,265 | ||||||||||||||||||||||||||
Total | $ | 21,030 | $ | 1,382 | $ | 31,464 | $ | 53,876 | $ | 2,081 | $ | 21,042 | $ | 3,461 | $ | 332,397 | $ | 412,858 | |||||||||||||||||
December 31, 2012 | December 31, 2011 | ||||||||||||||||||||||||||||
$ in thousands | Recorded Investment | Unpaid Principal Balance | Associated Allowance | Average Balance | Interest income recognized | Average Balance | Interest income recognized | ||||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||||||
One-to-four family residential | $ | 1,111 | $ | 1,111 | $ | — | $ | 659 | $ | 38 | $ | 2,176 | $ | 39 | |||||||||||||||
Multi-family mortgage | — | — | — | — | 5 | 196 | 18 | ||||||||||||||||||||||
Commercial real estate | 8,660 | 9,348 | — | 7,402 | 191 | 6,202 | 4 | ||||||||||||||||||||||
Construction | 1,230 | 1,492 | — | 2,743 | 53 | 10,139 | 804 | ||||||||||||||||||||||
Business | 1,192 | 2,131 | — | 1,064 | 41 | 4,942 | 156 | ||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 12,193 | $ | 14,082 | $ | — | $ | 11,868 | $ | 328 | $ | 23,655 | $ | 1,021 | |||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
One-to-four family residential | $ | 5,676 | $ | 6,229 | $ | 379 | $ | 4,197 | $ | 54 | $ | 7,171 | $ | 91 | |||||||||||||||
Multi-family mortgage | — | — | — | 339 | — | 4,427 | 70 | ||||||||||||||||||||||
Commercial real estate | 7,239 | 7,986 | 457 | 6,732 | 155 | 12,118 | 231 | ||||||||||||||||||||||
Construction | — | — | — | — | — | 2,606 | — | ||||||||||||||||||||||
Business | 4,570 | 4,570 | 1,821 | 4,593 | 254 | 1,592 | 106 | ||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 17,485 | $ | 18,785 | $ | 2,657 | $ | 15,861 | $ | 463 | $ | 27,914 | $ | 498 | |||||||||||||||
Total impaired loans by type: | |||||||||||||||||||||||||||||
One-to-four family residential | $ | 6,787 | $ | 7,340 | $ | 379 | $ | 4,856 | $ | 92 | $ | 9,347 | $ | 130 | |||||||||||||||
Multi-family mortgage | — | — | — | 339 | 5 | 4,623 | 88 | ||||||||||||||||||||||
Commercial real estate | 15,899 | 17,334 | 457 | 14,134 | 346 | 18,320 | 235 | ||||||||||||||||||||||
Construction | 1,230 | 1,492 | — | 2,743 | 53 | 12,745 | 804 | ||||||||||||||||||||||
Business | 5,762 | 6,701 | 1,821 | 5,657 | 295 | 6,534 | 262 | ||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 29,678 | $ | 32,867 | $ | 2,657 | $ | 27,729 | $ | 791 | $ | 51,569 | $ | 1,519 |
As of March 31, 2012 | |||||||||||||
$ in thousands | Recorded Investment | Unpaid Principal Balance | Associated Allowance | ||||||||||
With no specific allowance recorded: | |||||||||||||
One-to-four family residential | $ | 628 | $ | 628 | $ | — | |||||||
Multi-family mortgage | 194 | 194 | — | ||||||||||
Commercial real estate | 6,304 | 6,304 | — | ||||||||||
Construction | 5,406 | 5,670 | — | ||||||||||
Business | 4,983 | 5,417 | — | ||||||||||
Consumer and other | — | — | — | ||||||||||
Total | $ | 17,515 | $ | 18,213 | $ | — | |||||||
With an allowance recorded: | |||||||||||||
One-to-four family residential | $ | 1,679 | $ | 1,760 | $ | 207 | |||||||
Multi-family mortgage | 814 | 879 | 61 | ||||||||||
Commercial real estate | 14,469 | 15,068 | 532 | ||||||||||
Construction | 681 | 1,613 | 48 | ||||||||||
Business | 1,089 | 1,776 | 101 | ||||||||||
Consumer and other | — | — | — | ||||||||||
Total | $ | 18,732 | $ | 21,096 | $ | 949 | |||||||
Total impaired loans by type: | |||||||||||||
One-to-four family residential | $ | 2,307 | $ | 2,388 | $ | 207 | |||||||
Multi-family mortgage | 1,008 | 1,073 | 61 | ||||||||||
Commercial real estate | 20,773 | 21,372 | 532 | ||||||||||
Construction | 6,087 | 7,283 | 48 | ||||||||||
Business | 6,072 | 7,193 | 101 | ||||||||||
Consumer and other | — | — | — | ||||||||||
Total | $ | 36,247 | $ | 39,309 | $ | 949 |
Modifications to loans during the nine month period ended | ||||||||||||||
December 31, 2012 | ||||||||||||||
$ in thousands | Number of loans | Pre- modification outstanding recorded investment | Recorded investment | Pre-Modification rate | Post-Modification rate | |||||||||
One-to-four family residential | 2 | 1,415 | 536 | 6.52 | % | 6.31 | % | |||||||
Commercial real estate | 2 | 1,061 | 1,060 | 12.02 | % | 12.02 | % | |||||||
Business | 4 | 2,242 | 2,210 | 7.44 | % | 7.44 | % | |||||||
8 | 4,718 | 3,806 |
$ in thousands | December 31, 2012 | ||
Federal income tax expense (benefit): | |||
Current | $ | 123 | |
Deferred | (1,529 | ) | |
Valuation Allowance | 1,529 | ||
123 | |||
State and local income tax expense (benefit): | |||
Current | 141 | ||
Deferred | 181 | ||
Valuation Allowance | (181 | ) | |
141 | |||
Total income tax expense: | $ | 264 |
$ in thousands | December 31, 2012 | ||||||
Amount | Percent | ||||||
Statutory Federal income tax | $ | 81 | 34.0 | % | |||
State and local income taxes, net of Federal tax benefit | (6 | ) | (2.5 | )% | |||
General business credit | (24 | ) | (10.2 | )% | |||
Valuation allowance | 1,348 | 565.5 | % | ||||
Adjustment to DTA due to Section 382 limitation | (1,363 | ) | (571.7 | )% | |||
Other | 228 | 95.6 | % | ||||
Total income tax expense | $ | 264 | 110.7 | % |
• | Level 1— Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2— Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
• | Level 3— Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
$ in thousands | Fair Value Measurements at December 31, 2012, Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Mortgage servicing rights | $ | — | $ | — | $ | 419 | $ | 419 | ||||||||
Investment securities: | ||||||||||||||||
Available for sale: | ||||||||||||||||
U.S. Government Securities | 2,802 | — | — | 2,802 | ||||||||||||
Government National Mortgage Association | — | 23,005 | — | 23,005 | ||||||||||||
Federal Home Loan Mortgage Corporation | — | 6,920 | — | 6,920 | ||||||||||||
Federal National Mortgage Association | — | 4,805 | — | 4,805 | ||||||||||||
Asset-Backed Securities | — | 15,349 | — | 15,349 | ||||||||||||
Corporates | — | 2,022 | — | 2,022 | ||||||||||||
Other | — | 54,983 | 50 | 55,033 | ||||||||||||
Total available for sale securities | $ | 2,802 | $ | 107,084 | $ | 50 | $ | 109,936 | ||||||||
Total assets | $ | 2,802 | $ | 107,084 | $ | 469 | $ | 110,355 |
$ in thousands | Fair Value Measurements at March 31, 2012, Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Mortgage servicing rights | $ | — | $ | — | $ | 491 | $ | 491 | ||||||||
Investment securities: | ||||||||||||||||
Available for sale: | ||||||||||||||||
U.S. Government Securities | 3,361 | — | — | 3,361 | ||||||||||||
Government National Mortgage Association | — | 27,612 | — | 27,612 | ||||||||||||
Federal Home Loan Mortgage Corporation | — | 5,305 | — | 5,305 | ||||||||||||
Federal National Mortgage Association | — | 6,141 | — | 6,141 | ||||||||||||
Corporates | — | 1,949 | — | 1,949 | ||||||||||||
Other | — | 40,686 | 52 | 40,738 | ||||||||||||
Total available for sale securities | $ | 3,361 | $ | 81,693 | $ | 52 | $ | 85,106 | ||||||||
Total assets | $ | 3,361 | $ | 81,693 | $ | 543 | $ | 85,597 |
$ in thousands | Total Realized/Unrealized Gains/(Losses) Recorded in Income (1) | Change in Unrealized Gains and (Losses) Related to Instruments Held at December 31, 2012 | |||||||||||||||||||||
Beginning balance, April 1, 2012 | Issuances / (Settlements) | Transfers to/(from) Level 3 | Ending balance, December 31, 2012 | ||||||||||||||||||||
Securities Available for Sale | $ | 52 | $ | — | $ | (2 | ) | $ | — | $ | 50 | $ | — | ||||||||||
Mortgage Servicing Rights | 491 | (72 | ) | — | — | 419 | (68 | ) |
$ in thousands | Total Realized/Unrealized Gains/(Losses) Recorded in Income (1) | Change in Unrealized Gains and (Losses) Related to Instruments Held at December 31, 2011 | |||||||||||||||||
Beginning balance, April 1, 2011 | Issuances / (Settlements) | Transfers to/(from) Level 3 | Ending balance, December 31, 2011 | ||||||||||||||||
Securities Available for Sale | $ | 45 | — | — | — | $ | 45 | — | |||||||||||
Mortgage Servicing Rights | 626 | (117 | ) | — | — | 509 | (106 | ) | |||||||||||
(1) Includes net servicing cash flows and the passage of time. |
$ in thousands | Fair Value Measurements at December 31, 2012, Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable | Total Fair | |||||||||||||
(Level 1) | (Level 2) | Inputs (Level 3) | Value | |||||||||||||
Loans held-for-sale | $ | — | $ | 18,991 | $ | — | $ | 18,991 | ||||||||
Impaired loans with a specific reserve allocated | $ | — | $ | — | $ | 11,971 | $ | 11,971 |
$ in thousands | Fair Value Measurements at March 31, 2012, Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable | Total Fair | |||||||||||||
(Level 1) | (Level 2) | Inputs (Level 3) | Value | |||||||||||||
Loans held-for-sale | $ | — | $ | 29,626 | $ | — | $ | 29,626 | ||||||||
Impaired loans with a specific reserve allocated | $ | — | $ | — | $ | 17,784 | $ | 17,784 |
$ in thousands | December 31, 2012 | |||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 121,850 | $ | 121,850 | $ | 121,850 | $ | — | $ | — | ||||||||||
Restricted cash | 6,416 | 6,416 | 6,416 | — | — | |||||||||||||||
Securities available-for-sale | 109,936 | 109,936 | 2,802 | 107,084 | 50 | |||||||||||||||
FHLB Stock | 3,368 | 3,368 | — | 3,368 | — | |||||||||||||||
Securities held-to-maturity | 9,565 | 10,191 | — | 10,191 | — | |||||||||||||||
Loans receivable | 349,971 | 357,012 | — | — | 357,012 | |||||||||||||||
Loans held-for-sale | 18,991 | 18,991 | — | 18,991 | — | |||||||||||||||
Accrued interest receivable | 2,359 | 2,359 | — | 2,359 | — | |||||||||||||||
Mortgage servicing rights | 419 | 419 | — | — | 419 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits | $ | 501,649 | $ | 495,952 | $ | 289,613 | $ | 206,339 | $ | — | ||||||||||
Advances from FHLB of New York | 55,000 | 55,895 | — | 55,895 | — | |||||||||||||||
Other borrowed money | 18,403 | 18,897 | — | 18,897 | — |
$ in thousands | March 31, 2012 | |||||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 91,697 | $ | 91,697 | $ | 91,697 | $ | — | $ | — | ||||||||||
Restricted cash | 6,416 | 6,415 | 6,415 | — | — | |||||||||||||||
Securities available-for-sale | 85,106 | 85,106 | 3,361 | 81,693 | 52 | |||||||||||||||
FHLB Stock | 2,168 | 2,168 | — | 2,168 | — | |||||||||||||||
Securities held-to-maturity | 11,081 | 11,774 | — | 11,774 | — | |||||||||||||||
Loans receivable | 393,037 | 398,258 | — | — | 398,258 | |||||||||||||||
Loans held-for-sale | 29,626 | 29,626 | — | 29,626 | — | |||||||||||||||
Accrued interest receivable | 2,256 | 2,256 | — | 2,256 | — | |||||||||||||||
Mortgage servicing rights | 491 | 491 | — | — | 491 | |||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Deposits | $ | 532,597 | $ | 524,535 | $ | 305,196 | $ | 219,339 | $ | — | ||||||||||
Advances from FHLB of New York | 25,026 | 26,331 | — | 26,331 | — | |||||||||||||||
Other borrowed money | 18,403 | 18,886 | — | 18,886 | — |
The Bank's involvement with VIEs, consolidated and unconsolidated, in which the company holds significant variable interests or has continuing involvement through servicing a majority of assets in a VIE, is presented below: | ||||||||||||||||||||||||||||||
$ in thousands | Involvement with SPE (000's) | Funded Exposure | Unfunded Exposure | Total | ||||||||||||||||||||||||||
Recognized Gain (Loss) (000's) | Total Rights transferred | Consolidated assets | Significant unconsolidated VIE assets | Total Involvement with SPE asset | Debt Investments | Equity Investments (1) | Funding Commitments | Maximum exposure to loss | ||||||||||||||||||||||
Carver Statutory Trust 1 | $ | — | $ | — | $ | — | $ | 13,400 | $ | 13,400 | $ | 13,000 | $ | 400 | $ | — | $ | — | $ | 13,400 | ||||||||||
CDE 1-9, CDE 11-12 | — | 40,000 | 33,349 | — | 33,349 | — | — | — | 7,800 | 7,800 | ||||||||||||||||||||
CDE 10 | 1,700 | 19,000 | — | 15,992 | 15,992 | — | — | — | 7,410 | 7,410 | ||||||||||||||||||||
CDE 13 | 500 | 10,500 | — | 10,568 | 10,568 | — | 1 | — | 4,095 | 4,096 | ||||||||||||||||||||
CDE 14 | 400 | 10,000 | — | 10,004 | 10,004 | — | 1 | — | 3,900 | 3,901 | ||||||||||||||||||||
CDE 15, CDE 16, CDE 17 | 900 | 20,500 | — | 20,901 | 20,901 | — | 2 | — | 7,995 | 7,997 | ||||||||||||||||||||
CDE 18 | 600 | 13,254 | — | 13,282 | 13,282 | — | 1 | — | 5,169 | 5,170 | ||||||||||||||||||||
CDE 19 | 500 | 10,746 | — | 10,855 | 10,855 | — | 1 | — | 4,191 | 4,192 | ||||||||||||||||||||
CDE 20 | 625 | 12,500 | — | 12,419 | 12,419 | — | 1 | — | 4,875 | 4,876 | ||||||||||||||||||||
CDE 21 | 625 | 12,500 | — | 12,471 | 12,471 | — | 1 | — | 4,875 | 4,876 | ||||||||||||||||||||
Total | $ | 5,850 | $ | 149,000 | $ | 33,349 | $ | 119,894 | $ | 153,242 | $ | 13,000 | $ | 409 | $ | — | $ | 50,310 | $ | 63,719 | ||||||||||
(1) Excludes any proceeds realized from exchange of equity interest in CDEs as detailed below. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | the ability of the Bank and the Company to comply with regulatory orders that may be imposed upon the Bank and/or the Company and the regulatory orders that have been imposed upon the Bank and the Company, and the effect on operations resulting from restrictions that may be and are set forth in the regulatory orders. For additional information please refer to “Bank Regulatory Matters” on page 39; |
• | restrictions set forth in the terms of the Series D preferred stock and in the exchange agreement with the United States (“U.S.”) Treasury that may limit our ability to raise additional capital; |
• | national and/or local changes in economic conditions, which could occur from numerous causes, including political changes, domestic and international policy changes, unrest, war and weather, such as Hurricane Sandy, or conditions in the real estate, securities markets or the banking industry, which could affect liquidity in the capital markets, the volume of loan originations, deposit flows, real estate values, the levels of non-interest income and the amount of loan losses; |
• | changes in our existing loan portfolio composition and credit quality or changes in loan loss requirements; |
• | legislative or regulatory changes that may adversely affect the Company’s business, including but not limited to the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act or the proposed Basel III; |
• | the Company’s success in implementing new business initiatives, including expanding its product line, adding new branches and ATM centers and successfully building its brand image; |
• | changes in interest rates which may reduce net interest margin and net interest income; |
• | increases in competitive pressure among financial institutions or non-financial institutions; |
• | technological changes that may be more difficult to implement or more costly than anticipated; |
• | changes in deposit flows, loan demand, real estate values, borrowing facilities, capital markets and investment opportunities, which may adversely affect our business; |
• | changes in accounting principles, policies or guidelines, which may cause changes to our financial reporting obligations; |
• | litigation or regulatory actions, whether currently existing or commencing in the future, which may restrict our operations or strategic business plan; |
• | the ability to originate and purchase loans with attractive terms and acceptable credit quality; |
• | the ability to attract and retain key members of management; |
• | the ability to realize cost efficiencies and |
• | the ability to utilize the New Markets Tax Credits (“NMTC”). |
Involvement with SPE (000's) | Funded Exposure | Unfunded Exposure | Total | |||||||||||||||||||||||||||
$ in thousands | Recognized Gain (Loss) (000's) | Total Rights transferred | Consolidated assets | Significant unconsolidated VIE assets | Total Involvement with SPE asset | Debt Investments | Equity Investments (1) | Funding Commitments | Maximum exposure to loss | |||||||||||||||||||||
Carver Statutory Trust 1 | $ | — | $ | — | $ | — | $ | 13,400 | $ | 13,400 | $ | 13,000 | $ | 400 | $ | — | $ | — | $ | 13,400 | ||||||||||
CDE 1-9, CDE 11-12 | — | 40,000 | 33,349 | — | 33,349 | — | — | — | 7,800 | 7,800 | ||||||||||||||||||||
CDE 10 | 1,700 | 19,000 | — | 15,992 | 15,992 | — | — | — | 7,410 | 7,410 | ||||||||||||||||||||
CDE 13 | 500 | 10,500 | — | 10,568 | 10,568 | — | 1 | — | 4,095 | 4,096 | ||||||||||||||||||||
CDE 14 | 400 | 10,000 | — | 10,004 | 10,004 | — | 1 | — | 3,900 | 3,901 | ||||||||||||||||||||
CDE 15, CDE 16, CDE 17 | 900 | 20,500 | — | 20,901 | 20,901 | — | 2 | — | 7,995 | 7,997 | ||||||||||||||||||||
CDE 18 | 600 | 13,254 | — | 13,282 | 13,282 | — | 1 | — | 5,169 | 5,170 | ||||||||||||||||||||
CDE 19 | 500 | 10,746 | — | 10,855 | 10,855 | — | 1 | — | 4,191 | 4,192 | ||||||||||||||||||||
CDE 20 | 625 | 12,500 | — | 12,419 | 12,419 | — | 1 | — | 4,875 | 4,876 | ||||||||||||||||||||
CDE 21 | 625 | 12,500 | — | 12,471 | 12,471 | — | 1 | — | 4,875 | 4,876 | ||||||||||||||||||||
Total | $ | 5,850 | $ | 149,000 | $ | 33,349 | $ | 119,894 | $ | 153,242 | $ | 13,000 | $ | 409 | $ | — | $ | 50,310 | $ | 63,719 | ||||||||||
(1) Excludes any proceeds realized from exchange of equity interest in CDE's as detailed above. |
• | 1-4 Family |
• | Construction |
• | Multifamily |
• | Commercial Real Estate |
• | Business Loans |
• | SBA Loans |
• | Other (Consumer and Overdraft Accounts) |
• | Pass |
• | Special Mention |
• | Substandard |
• | Doubtful |
1. | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses (Policy & Procedures). |
2. | Changes in relevant economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments (Economy). |
3. | Changes in the nature or volume of the loan portfolio and in the terms of loans (Nature & Volume). |
4. | Changes in the experience, ability, and depth of lending management and other relevant staff (Management). |
5. | Changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified loans (Problem Assets). |
6. | Changes in the quality of the loan review system (Loan Review). |
7. | Changes in the value of underlying collateral for collateral-dependent loans (Collateral Values). |
8. | The existence and effect of any concentrations of credit and changes in the level of such concentrations (Concentrations). |
9. | The effect of other external forces such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio (External Forces). |
$ in thousands | Tier 1 Leverage | Tier 1 Risk- Based Capital | Total Risk- Based Capital | |||||||||
Ratio | Ratio | Ratio | ||||||||||
GAAP Capital at December 31, 2012 | $ | 64,765 | $ | 64,765 | $ | 64,765 | ||||||
Add: | ||||||||||||
General valuation allowances | — | — | 4,982 | |||||||||
Qualifying subordinated debt | — | — | 5,000 | |||||||||
Other | 493 | 493 | 493 | |||||||||
Deduct: | ||||||||||||
Unrealized gains on securities available-for-sale, net | 830 | 830 | 830 | |||||||||
Goodwill and qualifying intangible assets, net | — | — | — | |||||||||
Regulatory Capital | $ | 64,428 | $ | 64,428 | $ | 74,410 | ||||||
Minimum Capital requirement | 57,640 | 50,567 | 50,567 | |||||||||
Regulatory Capital Excess | $ | 6,788 | $ | 13,861 | $ | 23,843 | ||||||
Capital Ratios | 10.06 | % | 16.56 | % | 19.13 | % |
$ in thousands | |||
Commitments to fund construction and mortgage loans | $ | 14,709 | |
Commitments to fund commercial and consumer loans | 4,400 | ||
Lines of credit | 3,295 | ||
Letters of credit | 334 | ||
Total | $ | 22,738 |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||
Selected Financial Data: | 2012 | 2011 | 2012 | 2011 | ||||||||
Return on average assets (1) | 0.31 | % | (0.42 | )% | (0.01 | )% | (4.81 | )% | ||||
Return on average stockholders' equity (2) | 3.46 | % | (4.27 | )% | (0.14 | )% | (58.71 | )% | ||||
Net interest margin (3) | 3.14 | % | 3.12 | % | 3.14 | % | 3.19 | % | ||||
Interest rate spread (4) | 2.96 | % | 2.79 | % | 2.94 | % | 2.83 | % | ||||
Efficiency ratio (5) | 100.63 | % | 138.60 | % | 102.47 | % | 122.77 | % | ||||
Operating expenses to average assets (6) | 4.79 | % | 4.75 | % | 10.08 | % | 6.72 | % | ||||
Average stockholders' equity to average assets (7) | 9.00 | % | 9.72 | % | 8.96 | % | 8.20 | % | ||||
Average interest-earning assets to average interest-bearing liabilities | 1.24x | 1.17x | 1.24x | 1.23x | ||||||||
(1) Net loss, annualized, divided by average total assets. | ||||||||||||
(2) Net loss, annualized, divided by average total stockholders' 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 less loss on real estate owned, annualized, divided by average total assets. | ||||||||||||
(7) Total average stockholders' equity divided by total average assets for the period. |
$ in thousands | For the Three Months Ended December 31, | |||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||
Loans (1) | $ | 404,613 | $ | 5,325 | 5.26 | % | $ | 507,153 | $ | 6,416 | 5.06 | % | ||||||||||
Mortgaged-backed securities | 46,251 | 215 | 1.86 | % | 44,246 | 279 | 2.52 | % | ||||||||||||||
Investment securities | 73,392 | 267 | 1.46 | % | 24,169 | 81 | 1.33 | % | ||||||||||||||
Restricted Cash Deposit | 6,415 | — | 0.03 | % | 6,397 | — | 0.03 | % | ||||||||||||||
Equity securities (2) | 2,545 | 23 | 3.60 | % | 2,655 | 30 | 4.42 | % | ||||||||||||||
Other investments and federal funds sold | 66,899 | 97 | 0.58 | % | 63,309 | 105 | 0.66 | % | ||||||||||||||
Total interest-earning assets | 600,115 | 5,927 | 3.95 | % | 647,929 | 6,911 | 4.27 | % | ||||||||||||||
Non-interest-earning assets | 9,273 | 6,921 | ||||||||||||||||||||
Total assets | $ | 609,388 | $ | 654,850 | ||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
NOW demand | $ | 25,054 | $ | 10 | 0.16 | % | $ | 27,191 | $ | 11 | 0.16 | % | ||||||||||
Savings and clubs | 97,391 | 64 | 0.26 | % | 102,960 | 68 | 0.26 | % | ||||||||||||||
Money market | 112,044 | 201 | 0.71 | % | 83,690 | 251 | 1.19 | % | ||||||||||||||
Certificates of deposit | 204,609 | 582 | 1.13 | % | 193,358 | 728 | 1.49 | % | ||||||||||||||
Mortgagors deposits | 2,282 | 11 | 1.92 | % | 2,309 | 11 | 1.89 | % | ||||||||||||||
Total deposits | 441,380 | 868 | 0.78 | % | 409,508 | 1,068 | 1.04 | % | ||||||||||||||
Borrowed money | 43,737 | 342 | 3.11 | % | 88,679 | 785 | 3.51 | % | ||||||||||||||
Total interest-bearing liabilities | 485,117 | 1,210 | 0.99 | % | 498,187 | 1,853 | 1.48 | % | ||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||
Demand | 60,117 | 84,585 | ||||||||||||||||||||
Other liabilities | 9,329 | 8,449 | ||||||||||||||||||||
Total liabilities | 554,563 | 591,221 | ||||||||||||||||||||
Minority Interest | — | |||||||||||||||||||||
Stockholders’ equity | 54,825 | 63,629 | ||||||||||||||||||||
Total liabilities & stockholders’ equity | $ | 609,388 | $ | 654,850 | ||||||||||||||||||
Net interest income | $ | 4,717 | $ | 5,058 | ||||||||||||||||||
Average interest rate spread | 2.96 | % | 2.79 | % | ||||||||||||||||||
Net interest margin | 3.14 | % | 3.12 | % | ||||||||||||||||||
(1) Includes non-accrual loans | ||||||||||||||||||||||
(2) Includes FHLB-NY stock |
$ in thousands | For the Nine Months Ended December 31, | |||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||
Loans (1) | $ | 416,306 | $ | 16,398 | 5.25 | % | $ | 545,267 | $ | 20,076 | 4.91 | % | ||||||||||
Mortgaged-backed securities | 51,418 | 783 | 2.03 | % | 48,631 | 1,018 | 2.79 | % | ||||||||||||||
Investment securities | 57,776 | 599 | 1.38 | % | 23,773 | 218 | 1.22 | % | ||||||||||||||
Restricted Cash Deposit | 6,415 | 1 | 0.03 | % | 6,969 | 2 | 0.03 | % | ||||||||||||||
Equity securities (2) | 2,545 | 70 | 3.64 | % | 2,867 | 111 | 5.14 | % | ||||||||||||||
Other investments and federal funds sold | 77,438 | 343 | 0.59 | % | 44,877 | 160 | 0.47 | % | ||||||||||||||
Total interest-earning assets | 611,898 | 18,194 | 3.96 | % | 672,384 | 21,585 | 4.28 | % | ||||||||||||||
Non-interest-earning assets | 8,139 | 3,015 | ||||||||||||||||||||
Total assets | $ | 620,037 | $ | 675,399 | ||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Now demand | $ | 26,016 | $ | 31 | 0.16 | % | $ | 26,451 | $ | 32 | 0.16 | % | ||||||||||
Savings and clubs | 99,495 | 197 | 0.26 | % | 105,112 | 208 | 0.26 | % | ||||||||||||||
Money market | 110,241 | 598 | 0.72 | % | 76,232 | 608 | 1.06 | % | ||||||||||||||
Certificates of deposit | 212,432 | 1,894 | 1.19 | % | 198,780 | 2,135 | 1.43 | % | ||||||||||||||
Mortgagors deposits | 2,193 | 30 | 1.82 | % | 2,392 | 30 | 1.66 | % | ||||||||||||||
Total deposits | 450,377 | 2,750 | 0.81 | % | 408,967 | 3,013 | 0.98 | % | ||||||||||||||
Borrowed money | 43,857 | 1,033 | 3.13 | % | 99,806 | 2,561 | 3.41 | % | ||||||||||||||
Total interest-bearing liabilities | 494,234 | 3,783 | 1.02 | % | 508,773 | 5,574 | 1.45 | % | ||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||
Demand | 62,057 | 103,069 | ||||||||||||||||||||
Other liabilities | 8,160 | 8,162 | ||||||||||||||||||||
Total liabilities | 564,451 | 620,004 | ||||||||||||||||||||
Stockholders' equity | 55,586 | 55,395 | ||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 620,037 | $ | 675,399 | ||||||||||||||||||
Net interest income | $ | 14,411 | $ | 16,011 | ||||||||||||||||||
Average interest rate spread | 2.94 | % | 2.83 | % | ||||||||||||||||||
Net interest margin | 3.14 | % | 3.18 | % | ||||||||||||||||||
(1) Includes non-accrual loans | ||||||||||||||||||||||
(2) Includes FHLB-NY stock |
Nine Months Ended December 31, 2012 | Fiscal Year Ended March 31, 2012 | Nine Months Ended December 31, 2011 | |||||||||
Beginning Balance | $ | 19,821 | $ | 23,147 | 23,147 | ||||||
Less: Charge-offs | (5,784 | ) | (21,935 | ) | (16,827 | ) | |||||
Add: Recoveries | 60 | 2,267 | 1,802 | ||||||||
Provision for Loan Losses | 386 | 16,342 | 12,290 | ||||||||
Ending Balance | $ | 14,483 | $ | 19,821 | 20,412 | ||||||
Ratios: | |||||||||||
Net charge-offs to average loans outstanding | 1.37 | % | 3.74 | % | 2.76 | % | |||||
Allowance to total loans | 3.97 | % | 4.80 | % | 4.46 | % | |||||
Allowance to non-performing loans | 40.72 | % | 36.31 | % | 29.47 | % |
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
Non Performing Asset Table | |||||||||||||||||||||
$ in thousands | December 2012 | September 2012 | June 2012 | March 2012 | December 2011 | ||||||||||||||||
Loans accounted for on a non-accrual basis (1): | |||||||||||||||||||||
Gross loans receivable: | |||||||||||||||||||||
One- to four-family | $ | 7,249 | $ | 6,094 | $ | 7,363 | $ | 6,988 | $ | 12,863 | |||||||||||
Multifamily | 483 | 1,724 | 1,790 | 2,923 | 2,619 | ||||||||||||||||
Commercial real estate | 18,872 | 14,145 | 16,487 | 24,467 | 26,313 | ||||||||||||||||
Construction | 1,230 | 4,258 | 4,658 | 11,325 | 17,651 | ||||||||||||||||
Business | 7,718 | 8,717 | 9,337 | 8,862 | 9,825 | ||||||||||||||||
Consumer | 14 | 15 | — | 23 | 4 | ||||||||||||||||
Total non-accrual loans | 35,566 | 34,953 | 39,635 | 54,588 | 69,275 | ||||||||||||||||
Other non-performing assets (2): | |||||||||||||||||||||
Real estate owned | 2,996 | 2,119 | 1,961 | 2,183 | 2,183 | ||||||||||||||||
Loans held for sale | 18,991 | 26,830 | 30,163 | 29,626 | 22,490 | ||||||||||||||||
Total other non-performing assets | 21,987 | 28,949 | 32,124 | 31,809 | 24,673 | ||||||||||||||||
Total non-performing assets (3) | $ | 57,553 | $ | 63,902 | $ | 71,759 | $ | 86,397 | $ | 93,948 | |||||||||||
Accruing loans contractually past maturity > 90 days (4) | $ | — | $ | 884 | $ | — | $ | — | $ | — | |||||||||||
Non-performing loans to total loans | 9.76 | % | 9.20 | % | 10.17 | % | 13.22 | % | 15.12 | % | |||||||||||
Non-performing assets to total assets | 8.98 | % | 10.01 | % | 11.13 | % | 13.47 | % | 14.01 | % | |||||||||||
(1) Non-accrual status denotes any loan where the delinquency exceeds 90 days past due and in the opinion of management the collection of contractual interest and/or principal is doubtful. Payments received on a 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. During the current year period 10 non-performing loans with a fair value of $7.2 million were moved to held for sale. | |||||||||||||||||||||
(2) Other non-performing assets generally represent loans that the Bank is in the process of selling and has designated held for sale or property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure). These assets are recorded at the lower of their cost or fair value. | |||||||||||||||||||||
(3) Troubled debt restructured loans performing in accordance with their modified terms for less than six months and those not performing in accordance with their modified terms are considered non-accrual and are included in the non-accrual category in the table above. At December 31, 2012 there were $5.1 million 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 maturity and still accruing, which were not included in the non-performing category, are presented in the above table. |
Item 3. | Quantitative and Qualitative Disclosure about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit 11. | Computation of Loss Per Share. | |
Exhibit 31.1 | Certification of Chief Executive Officer. | |
Exhibit 31.2 | Certification of Chief Accounting Officer. | |
Exhibit 32.1 | Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. | |
Exhibit 32.2 | Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. | |
Exhibits 101 | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Operations and Comprehensive Loss (iv) the Consolidated Statements Changes in Stockholders Equity, (v) the Consolidated Statements of Cash Flows, (vi) the Notes to the Consolidated Financial Statements.(1) | |
(1) As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. | ||
CARVER BANCORP, INC. | ||
Date: February 14, 2013 | /s/ Deborah C. Wright | |
Deborah C. Wright | ||
Chairman and Chief Executive Officer (Principal Executive Officer) |
Date: February 14, 2013 | /s/ David L. Toner | |
David L. Toner | ||
Senior Vice President & Controller (Principal Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Carver Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 14, 2013 | /s/ Deborah C. Wright |
Deborah C. Wright | ||
Chairman and Chief | ||
Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Carver Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 14, 2013 | /s/ Mark A. Ricca |
Mark A. Ricca | ||
Executive Vice President | ||
Chief Financial Officer and Chief Administrative Officer |
a) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report. |
Date: | February 14, 2013 | /s/ Deborah C. Wright |
Deborah C. Wright |
a) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
b) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report. |
Date: | February 14, 2013 | /s/ Mark A. Ricca |
Mark A. Ricca |
Fair Value Measurements Assets within Level 3 of Valuation Hierarchy (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2012
|
Jun. 30, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities | $ 109,900 | $ 109,900 | ||
Fair Value, Inputs, Level 3 [Member]
|
||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale Securities | 45 | 52 | 45 | |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 0 | 0 | 0 | |
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | (2) | 0 | ||
Available-for-sale Securities | 50 | 50 | 45 | |
Servicing Asset at Fair Value, Amount | 626 | 491 | 626 | |
Mortgage Servicing unrealized loss | (72) | (72) | (117) | |
Payments for (Proceeds from) Mortgage Servicing Rights | 0 | 0 | ||
Servicing Asset at Fair Value, Amount | 419 | 419 | 509 | |
Available-for-sale Securities [Member]
|
||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in unrealized gains and losses to instruments held | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | ||
Servicing Contracts [Member]
|
||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Change in unrealized gains and losses to instruments held | (68) | (106) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | $ 0 | $ 0 |
Income Taxes Other Income Tax Details (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Dec. 31, 2012
|
Jun. 30, 2011
|
|
Other Tax Carryforward [Line Items] | ||
Equity Issuance, Amount | $ 55 | |
Operating Loss Carryforwards, Limitations on Use | .9 | |
Deferred Tax Assets, Net | 27.4 | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 4.7 | |
Deferred Tax Assets, Net, Current | 22.7 | |
Deferred Tax Assets, Operating Loss Carryforwards, Federal | 19.2 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 34.4 | |
Deferred Tax Assets, Operating Loss Carryforwards, City | $ 29.4 |
Investment Securities Text Figures (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2012
|
Mar. 31, 2012
|
|
Schedule of Investments [Line Items] | |||
Number of securities with unrealized loss | 6 | 14 | |
AFS Fair Value | $ 109,900 | $ 109,900 | |
Number of MBS with unrealized loss more than 12 months | 2 | ||
Held-to-maturity Securities | 9,565 | 9,565 | 11,081 |
Percentage Securities in Unrealized Loss More Than 12 months | 33.70% | ||
Number of GNMA securities impaired for more than 12 months | 2 | ||
Available-for-sale Securities [Member]
|
|||
Schedule of Investments [Line Items] | |||
Percentage Available-for-sale Securities | 92.00% | 92.00% | |
Total mortgage-backed securities AFS
|
|||
Schedule of Investments [Line Items] | |||
Percentage Available-for-Sale, Continuos Unrealized Loss Position | 36.70% | 36.70% | |
US Government Agency Securities
|
|||
Schedule of Investments [Line Items] | |||
Percentage Available-for-Sale, Continuos Unrealized Loss Position | 23.60% | 23.60% | |
Treasuries
|
|||
Schedule of Investments [Line Items] | |||
Percentage Available-for-Sale, Continuos Unrealized Loss Position | 6.00% | 6.00% | |
Held-to-maturity securities
|
|||
Schedule of Investments [Line Items] | |||
Percentage Held-to-maturity Securities | 8.00% | 8.00% | |
Held-to-maturity Securities | 9,600 | 9,600 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
|||
Schedule of Investments [Line Items] | |||
Held-to-maturity Securities | $ 11,081 |
Fair Value Measurements (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table presents, by valuation hierarchy, assets that are measured at fair value on a recurring basis as of December 31, 2012 and March 31, 2012, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Servicing Assets at Fair Value [Table Text Block] | The following table includes a roll-forward of assets classified by the Company within Level 3 of the valuation hierarchy for the nine months ended December 31, 2012 and 2011:
(1) Includes net servicing cash flows and the passage of time.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | The following table presents assets and liabilities that were measured at fair value on a non-recurring basis as of December 31, 2012 and March 31, 2012 and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:
|
Fair Value Measurements Text Tag (Details)
|
6 Months Ended |
---|---|
Sep. 30, 2012
|
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Percent of Total Assets Level 3 | 0.10% |
Loan Receivable and Allowance for Loan and Lease Losses Non performing TDRs (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | |
---|---|---|
Dec. 31, 2012
|
Mar. 31, 2012
|
|
Financing Receivable, Modifications [Line Items] | ||
Loans and Leases Receivable, Impaired, Nonperforming, Nonaccrual of Interest | $ 35,566 | $ 54,588 |
Mortgage Loans on Real Estate, Number of Loans | 8 | |
Pre-modifcation Outstanding Recorded Investment | 4,718 | |
Loan modifications recorded investment | 3,806 | |
One- to four family loans [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Mortgage Loans on Real Estate, Number of Loans | 2 | |
Pre-modifcation Outstanding Recorded Investment | 1,415 | |
Loan modifications recorded investment | 536 | |
weighted average rate pre modification | 6.52% | |
Weighted average rate post modification | 6.31% | |
Commercial Real Estate [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Mortgage Loans on Real Estate, Number of Loans | 2 | |
Pre-modifcation Outstanding Recorded Investment | 1,061 | |
Loan modifications recorded investment | 1,060 | |
weighted average rate pre modification | 12.02% | |
Weighted average rate post modification | 12.02% | |
Consumer Loan [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Mortgage Loans on Real Estate, Number of Loans | 4 | |
Pre-modifcation Outstanding Recorded Investment | 2,242 | |
Loan modifications recorded investment | $ 2,210 | |
weighted average rate pre modification | 7.44% | |
Weighted average rate post modification | 7.44% |
Loan Receivable and Allowance for Loan and Lease Losses Credit Risk Profile Internal Grade (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Mar. 31, 2012
|
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Multi Family Loans | $ 67,058 | $ 78,984 |
Loans Receivable, Gross, Commercial, Mortgage | 200,641 | 206,021 |
Loans Receivable, Gross, Commercial, Real Estate | 330,655 | 367,611 |
Construction Loan | 1,230 | 16,433 |
Commercial business loans | 33,535 | 43,989 |
Loans and Leases Receivable, Commercial, Net of Deferred Income | 33,519 | 43,982 |
Pass [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Multi Family Loans | 65,620 | 74,900 |
Loans Receivable, Gross, Commercial, Real Estate | 161,665 | 167,606 |
Construction Loan | 0 | 201 |
Commercial business loans | 20,032 | 25,963 |
Special Mention [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Multi Family Loans | 0 | 381 |
Loans Receivable, Gross, Commercial, Real Estate | 3,740 | 1,456 |
Construction Loan | 0 | 6,108 |
Commercial business loans | 4,300 | 4,954 |
Substandard [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Multi Family Loans | 1,438 | 3,703 |
Loans Receivable, Gross, Commercial, Real Estate | 35,236 | 36,959 |
Construction Loan | 1,230 | 10,124 |
Commercial business loans | 9,187 | 12,551 |
Doubtful [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Multi Family Loans | 0 | 0 |
Loans Receivable, Gross, Commercial, Real Estate | 0 | 0 |
Construction Loan | 0 | 0 |
Commercial business loans | 0 | 514 |
Unlikely to be Collected Financing Receivable [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Multi Family Loans | 0 | 0 |
Loans Receivable, Gross, Commercial, Real Estate | 0 | 0 |
Construction Loan | 0 | 0 |
Commercial business loans | $ 0 | $ 0 |
Variable Interest Entities VIE (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | |
---|---|---|
Dec. 31, 2012
|
May 15, 2009
|
|
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | $ 5,850 | |
Variable Interest Entity, Rights Transferred | 149,000 | 40,000 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 33,349 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 119,894 | |
Variable Interest Entity, Total Involvment with SPE Asset | 153,242 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 13,000 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 0 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 50,310 | |
Variable Interest Entity, Total Exposure | 63,719 | |
Carver Statutory Trust 1 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 0 | |
Variable Interest Entity, Rights Transferred | 0 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 13,400 | |
Variable Interest Entity, Total Involvment with SPE Asset | 13,400 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 13,000 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 400 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 0 | |
Variable Interest Entity, Total Exposure | 13,400 | |
CDE 1-9, CDE 11-12 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 0 | |
Variable Interest Entity, Rights Transferred | 40,000 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 33,349 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Total Involvment with SPE Asset | 33,349 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 0 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 7,800 | |
Variable Interest Entity, Total Exposure | 7,800 | |
CDE 10 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 1,700 | |
Variable Interest Entity, Rights Transferred | 19,000 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 15,992 | |
Variable Interest Entity, Total Involvment with SPE Asset | 15,992 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 0 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 7,410 | |
Variable Interest Entity, Total Exposure | 7,410 | |
CDE 13 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 500 | |
Variable Interest Entity, Rights Transferred | 10,500 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 10,568 | |
Variable Interest Entity, Total Involvment with SPE Asset | 10,568 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 1 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,095 | |
Variable Interest Entity, Total Exposure | 4,096 | |
CDE 14 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 400 | |
Variable Interest Entity, Rights Transferred | 10,000 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 10,004 | |
Variable Interest Entity, Total Involvment with SPE Asset | 10,004 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 1 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 3,900 | |
Variable Interest Entity, Total Exposure | 3,901 | |
CDE 15, 16, 17 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 900 | |
Variable Interest Entity, Rights Transferred | 20,500 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 20,901 | |
Variable Interest Entity, Total Involvment with SPE Asset | 20,901 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 2 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 7,995 | |
Variable Interest Entity, Total Exposure | 7,997 | |
CDE 18 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 600 | |
Variable Interest Entity, Rights Transferred | 13,254 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 13,282 | |
Variable Interest Entity, Total Involvment with SPE Asset | 13,282 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 1 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 5,169 | |
Variable Interest Entity, Total Exposure | 5,170 | |
CDE 19 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 500 | |
Variable Interest Entity, Rights Transferred | 10,746 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 10,855 | |
Variable Interest Entity, Total Involvment with SPE Asset | 10,855 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 1 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,191 | |
Variable Interest Entity, Total Exposure | 4,192 | |
CDE 20 [Member]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 625 | |
Variable Interest Entity, Rights Transferred | 12,500 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 12,419 | |
Variable Interest Entity, Total Involvment with SPE Asset | 12,419 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 1 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,875 | |
Variable Interest Entity, Total Exposure | 4,876 | |
CDE21 [Domain]
|
||
Entity Information [Line Items] | ||
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 625 | |
Variable Interest Entity, Rights Transferred | 12,500 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 0 | |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 12,471 | |
Variable Interest Entity, Total Involvment with SPE Asset | 12,471 | |
Variable Interest Entity, Funded Exposure, Debt Investment | 0 | |
Variable Interest Entity, Funded Exposure, Equity Invesment | 1 | |
Variable Ineterest Entity, Unfunded Exposure, Funding Commitments | 0 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 4,875 | |
Variable Interest Entity, Total Exposure | $ 4,876 |
Fair Value Measurements Fair Value on a Recurring basis (Details) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2012
|
Mar. 31, 2012
|
---|---|---|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset at Amortized Cost | $ 419 | $ 491 |
US Treasuries, AFS, Fair Value Disclosure | 2,802 | 3,361 |
Government National Mortgage Asscociation, AFS, Fair Value Disclosure | 23,005 | 27,612 |
Federal Home Loan Mortgage Corp., AFS, Fair Value Disclosure | 6,920 | 5,305 |
Federal National Mortgage Corporation, AFS, Fair Value Disclosure | 4,805 | 6,141 |
Asset-Backed Securities, at Carrying Value | 15,349 | |
Corporate Securities, AFS, Fair Value Disclosure | 2,022 | 1,949 |
Other Securities, AFS, Fair Value Disclosure | 55,033 | 40,738 |
AFS Fair Value | 109,936 | 85,106 |
Assets, Fair Value Disclosure | 110,355 | 85,597 |
Fair Value, Inputs, Level 1 [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset at Amortized Cost | 0 | 0 |
US Treasuries, AFS, Fair Value Disclosure | 2,802 | 3,361 |
Government National Mortgage Asscociation, AFS, Fair Value Disclosure | 0 | 0 |
Federal Home Loan Mortgage Corp., AFS, Fair Value Disclosure | 0 | 0 |
Federal National Mortgage Corporation, AFS, Fair Value Disclosure | 0 | 0 |
Asset-Backed Securities, at Carrying Value | 0 | |
Corporate Securities, AFS, Fair Value Disclosure | 0 | 0 |
Other Securities, AFS, Fair Value Disclosure | 0 | 0 |
AFS Fair Value | 2,802 | 3,361 |
Assets, Fair Value Disclosure | 2,802 | 3,361 |
Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset at Amortized Cost | 0 | 0 |
US Treasuries, AFS, Fair Value Disclosure | 0 | 0 |
Government National Mortgage Asscociation, AFS, Fair Value Disclosure | 23,005 | 27,612 |
Federal Home Loan Mortgage Corp., AFS, Fair Value Disclosure | 6,920 | 5,305 |
Federal National Mortgage Corporation, AFS, Fair Value Disclosure | 4,805 | 6,141 |
Asset-Backed Securities, at Carrying Value | 15,349 | |
Corporate Securities, AFS, Fair Value Disclosure | 2,022 | 1,949 |
Other Securities, AFS, Fair Value Disclosure | 54,983 | 40,686 |
AFS Fair Value | 107,084 | 81,693 |
Assets, Fair Value Disclosure | 107,084 | 81,693 |
Fair Value, Inputs, Level 3 [Member]
|
||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Servicing Asset at Amortized Cost | 419 | 491 |
US Treasuries, AFS, Fair Value Disclosure | 0 | 0 |
Government National Mortgage Asscociation, AFS, Fair Value Disclosure | 0 | 0 |
Federal Home Loan Mortgage Corp., AFS, Fair Value Disclosure | 0 | 0 |
Federal National Mortgage Corporation, AFS, Fair Value Disclosure | 0 | 0 |
Asset-Backed Securities, at Carrying Value | 0 | |
Corporate Securities, AFS, Fair Value Disclosure | 0 | 0 |
Other Securities, AFS, Fair Value Disclosure | 50 | 52 |
AFS Fair Value | 50 | 52 |
Assets, Fair Value Disclosure | $ 469 | $ 543 |
Summary of Significant Accounting Policies
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of consolidated financial statement presentation The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s wholly-owned or majority-owned subsidiaries, Carver Asset Corporation, CFSB Realty Corp., Carver Community Development Corporation, and CFSB Credit Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the period then ended. These unaudited consolidated financial statements should be read in conjunction with the March 31, 2012 Annual Report to Stockholders on Form 10-K. Amounts subject to significant estimates and assumptions are items such as the allowance for loan losses, valuation of real estate owned, realization of deferred tax assets, and the fair value of financial instruments. While management uses available information to recognize losses on loans, future additions to the allowance for loan losses or future write-downs of real estate owned may be necessary based on changes in economic conditions in the areas where Carver Federal has extended mortgages and other credit instruments. Actual results could differ significantly from those assumptions. Current market conditions increase the risk and complexity of the judgments in these estimates. In addition, the Office of the Comptroller of the Currency (“OCC”), Carver Federal's regulator, as an integral part of its examination process, periodically reviews Carver Federal's allowance for loan losses and, if applicable, real estate owned valuations. The OCC may require Carver Federal to recognize additions to the allowance for loan losses or additional write-downs of real estate owned based on their judgments about information available to them at the time of their examination. Investment Securities When purchased, investment securities are designated as either investment securities held-to-maturity, available-for-sale or trading. Securities are classified as held-to-maturity and carried at amortized cost only if the Bank has a positive intent and ability to hold such securities to maturity. Securities held-to-maturity are carried at cost, adjusted for the amortization of premiums and the accretion of discounts using the level-yield method over the remaining period until maturity. If not classified as held-to-maturity, securities are classified as available-for-sale based upon management's ability to sell in response to actual or anticipated changes in interest rates, resulting prepayment risk or any other factors. Available-for-sale securities are reported at fair value. Estimated fair values of securities are based on either published or security dealers' market value if available. If quoted or dealer prices are not available, fair value is estimated using quoted or dealer prices for similar securities. Securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value with unrealized gains and losses included in earnings. The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized holding loss. Unrealized holding gains or losses for securities available-for-sale are excluded from earnings and reported net of deferred income taxes in accumulated other comprehensive income (loss), a component of the Statement of Operations and Comprehensive Income/Loss and a component of the Statement of Changes in Stockholders Equity. Following Financial Accounting Standards Board "FASB" guidance, the amount of an other-than-temporary impairment, when there are credit and non-credit losses on a debt security which management does not intend to sell, and for which it is more-likely-than-not that the entity will not be required to sell the security prior to the recovery of the non-credit impairment, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the debt security’s amortized cost basis and its fair value would be included in other comprehensive loss. During fiscal 2013 and fiscal 2012, no impairment charges were recorded. Gains or losses on sales of securities of all classifications are recognized based on the specific identification method. Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or market value. The valuation methodology for loans held-for-sale are based upon amounts offered, or other acceptable valuation methods and, in some instances, prior loan loss experience of Carver in connection with note sales since March 31, 2011. Loans Receivable Loans receivable are carried at unpaid principal balances plus unamortized premiums, purchase accounting mark-to-market adjustments, certain deferred direct loan origination costs and deferred loan origination fees and discounts, less the allowance for loan losses and charge offs. The Bank defers loan origination fees and certain direct loan origination costs and amortizes or accretes such amounts as an adjustment of yield over the contractual lives of the related loans using methodologies which approximate the interest method. Premiums and discounts on loans purchased are amortized or accreted as an adjustment of yield over the contractual lives, of the related loans, adjusted for prepayments when applicable, using methodologies which approximate the interest method. Loans are placed on non-accrual status when they are past due 90 days or more as to contractual obligations or when other circumstances indicate that collection is not probable. When a loan is placed on non-accrual status, any interest accrued but not received is reversed against interest income. Payments received on a non-accrual loan are either applied to protective advances, the outstanding principal balance or recorded as interest income, depending on an assessment of the ability to collect the loan. A non-accrual loan is restored to accrual status when principal and interest payments become less than 90 days past due and its future collectability is reasonably assured. The Company defines an impaired loan as a loan for which it is probable, based on current information, that the lender will not collect all amounts due under the contractual terms of the loan agreement. Collateral dependent impaired loans are assessed individually to determine if the loan's current estimated fair value of the property that collateralizes the impaired loan, if any, less costs to sell the property, is less than the recorded investment in the loan. Cash flow dependent loans are assessed individually to determine if the present value of the expected future cash flows is less than the recorded investment in the loan. Smaller balance homogeneous loans are evaluated for impairment collectively unless they are modified in a troubled debt restructuring. Such loans primarily include one-to four family residential mortgage loans and consumer loans. Allowance for Loan and Lease Losses (“ALLL”) The adequacy of the Bank's ALLL is determined, in accordance with the Interagency Policy Statement on the Allowance for Loan and Lease Losses (the “Interagency Policy Statement”) released by the OCC on December 13, 2006 and in accordance with Accounting Standards Codification (“ASC”) Topic 450 and ASC Topic 310. Compliance with the Interagency Policy Statement includes management's review of the Bank's loan portfolio, including the identification and review of situations that may affect a borrower's ability to repay. In addition, management reviews the overall portfolio quality through an analysis of delinquency and non-performing loan data, estimates of the value of underlying collateral, current charge-offs and other factors that may affect the portfolio, including a review of regulatory examinations, an assessment of current and expected economic conditions and changes in the size and composition of the loan portfolio. The ALLL reflects management's evaluation of the loans presenting identified loss potential, as well as the risk inherent in various components of the portfolio. There is a great amount of judgment applied to developing the ALLL. As such, there can never be assurance that the ALLL accurately reflects the actual loss potential inherent in a loan portfolio. Any change in circumstances considered by management to develop the ALLL could necessitate a change to the ALLL, including a change to the loan portfolio, such as a decline in credit quality or an increase in potential problem loans. General Reserve Allowance Carver's maintenance of a general reserve allowance in accordance with ASC Topic 450 includes Carver's evaluating the risk to loss potential of homogeneous pools of loans based upon a review of nine different factors that are then applied to each pool. The pools of loans (“Loan Type”) are:
The pools are further segregated into the following risk rating classes:
The Bank next applies to each pool a risk factor that determines the level of general reserves for that specific pool. The risk factors are comprised of actual losses for the most recent four quarters as a percentage of each respective Loan Type plus qualitative factors. As the loss experience for a Loan Type increases or decreases, the level of reserves required for that particular Loan Type also increases or decreases. Because actual loss experience may not adequately predict the level of losses inherent in a portfolio, the Bank reviews nine qualitative factors to determine if reserves should be adjusted based upon any of those factors. As the risk ratings worsen some of the qualitative factors tend to increase. The nine qualitative factors the Bank considers and may utilize are:
Specific Reserve Allowance Carver also maintains a specific reserve allowance for criticized and classified loans individually reviewed for impairment in accordance with ASC Topic 310 guidelines. The amount assigned to the specific reserve allowance is individually-determined based upon the loan. The ASC Topic 310 guidelines require the use of one of three approved methods to estimate the amount to be reserved and/or charged off for such credits. The three methods are as follows:
The institution may choose the appropriate ASC Topic 310 measurement on a loan-by-loan basis for an individually impaired loan, except for an impaired collateral-dependent loan. Guidance requires impairment of a collateral-dependent loan to be measured using the fair value of collateral method. A loan is considered "collateral-dependent" when the repayment of the debt will be provided solely by the underlying collateral, and there are no other available and reliable sources of repayment. Criticized and Classified loans with at risk balances of $500,000 or more and loans below $500,000 that the Credit Officer deems appropriate for review, are identified and reviewed for individual evaluation for impairment in accordance with ASC Topic 310, Accounting by Creditors for Impairment of a Loan. Carver also performs impairment analysis for all troubled debt restructurings (“TDRs”). If it is determined that it is probable the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement, the loan is categorized as impaired. If the loan is determined to be not impaired, it is then placed in the appropriate pool of Criticized & Classified loans to be evaluated collectively for impairment. Loans determined to be impaired are then evaluated to determine the measure of impairment amount based on one of the three measurement methods noted above. If it is determined that there is an impairment amount, the Bank then determines whether the impairment amount is permanent (that is a confirmed loss), in which case the loan is written down by the amount of the impairment, or if it is other than permanent, in which case the Bank establishes a specific valuation reserve that is included in the total ALLL. In accordance with guidance, if there is no impairment amount, no reserve is established for the loan. Troubled Debt Restructured Loans Troubled debt restructured loans (“TDR”) are those loans whose terms have been modified because of deterioration in the financial condition of the borrower and a concession is made. Modifications could include extension of the terms of the loan, reduced interest rates, and forgiveness of accrued interest and/or principal. Once an obligation has been restructured because of such credit problems, it continues to be considered restructured until paid in full. For cash flow dependent loans, the Company records an impairment charge equal to the difference between the present value of estimated future cash flows under the restructured terms discounted at the loan's original effective interest rate, and the loan's original carrying value. For a collateral dependent loan, the Company records an impairment when the current estimated fair value of the property that collateralizes the impaired loan, if any, is less than the recorded investment in the loan. TDR loans remain on non-accrual status until they have performed in accordance with the restructured terms for a period of at least 6 months. |