1-13007 | 13-3904174 |
(COMMISSION FILE NUMBER) | (I.R.S. EMPLOYER IDENTIFICATION NO.) |
¬ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¬ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¬ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¬ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits |
BY: | /David L. Toner/ | |
David L. Toner | ||
First Senior Vice President and Chief Financial Officer | ||
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
March 31, | March 31, | ||||||
$ in thousands except per share data | 2014 | 2013 | |||||
ASSETS | |||||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 115,239 | $ | 98,083 | |||
Money market investments | 7,315 | 6,563 | |||||
Total cash and cash equivalents | 122,554 | 104,646 | |||||
Restricted cash | 6,354 | 10,666 | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 89,461 | 116,051 | |||||
Held-to-maturity, at amortized cost (fair value of $8,970 and $9,629 at March 31, 2014 and March 31, 2013, respectively) | 9,029 | 9,043 | |||||
Total investments | 98,490 | 125,094 | |||||
Loans held-for-sale (“HFS”) | 5,011 | 13,107 | |||||
Loans receivable: | |||||||
Real estate mortgage loans | 362,888 | 334,594 | |||||
Commercial business loans | 26,930 | 35,281 | |||||
Consumer loans | 138 | 247 | |||||
Loans, net | 389,956 | 370,122 | |||||
Allowance for loan losses | (7,233 | ) | (10,989 | ) | |||
Total loans receivable, net | 382,723 | 359,133 | |||||
Premises and equipment, net | 7,830 | 8,597 | |||||
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost | 3,101 | 3,503 | |||||
Accrued interest receivable | 2,557 | 2,247 | |||||
Other assets | 11,218 | 11,284 | |||||
Total assets | $ | 639,838 | $ | 638,277 | |||
LIABILITIES AND EQUITY | |||||||
LIABILITIES | |||||||
Deposits: | |||||||
Savings | $ | 98,051 | $ | 98,066 | |||
Non-interest bearing checking | 53,232 | 58,239 | |||||
Interest-bearing checking | 24,271 | 25,927 | |||||
Money market | 127,655 | 113,259 | |||||
Certificates of deposit | 206,157 | 200,225 | |||||
Total deposits | 509,366 | 495,716 | |||||
Advances from the FHLB-New York and other borrowed money | 70,403 | 76,403 | |||||
Other liabilities | 8,549 | 9,423 | |||||
Total liabilities | 588,318 | 581,542 | |||||
EQUITY | |||||||
Non-controlling interest | (369 | ) | — | ||||
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; 3,697,836 and 3,697,364 shares issued; 3,695,892 and 3,695,420 shares outstanding at March 31, 2014 and March 31, 2013, respectively) | 61 | 61 | |||||
Additional paid-in capital | 56,114 | 55,708 | |||||
Accumulated deficit | (44,219 | ) | (44,439 | ) | |||
Non-controlling interest | — | 141 | |||||
Treasury stock, at cost (1,944 shares at March 31, 2014 and March 31, 2013) | (417 | ) | (417 | ) | |||
Accumulated other comprehensive (loss) income | (4,768 | ) | 563 | ||||
Total stockholders' equity | 51,889 | 56,735 | |||||
Total equity | 51,520 | 56,735 | |||||
Total liabilities and equity | $ | 639,838 | $ | 638,277 |
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||
March 31, | March 31 | ||||||||||||||
$ in thousands except per share data | 2014 | 2013 | 2014 | 2013 | |||||||||||
Interest income: | |||||||||||||||
Loans | $ | 5,145 | $ | 4,999 | $ | 20,734 | $ | 21,398 | |||||||
Mortgage-backed securities | 238 | 187 | 1,034 | 971 | |||||||||||
Investment securities | 312 | 355 | 1,321 | 1,211 | |||||||||||
Money market investments | 38 | 49 | 159 | 205 | |||||||||||
Total interest income | 5,733 | 5,590 | 23,248 | 23,785 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 719 | 758 | 2,797 | 3,508 | |||||||||||
Advances and other borrowed money | 267 | 336 | 1,154 | 1,370 | |||||||||||
Total interest expense | 986 | 1,094 | 3,951 | 4,878 | |||||||||||
Net interest income | 4,747 | 4,496 | 19,297 | 18,907 | |||||||||||
Provision for (recovery of) loan losses | 300 | (3,713 | ) | (426 | ) | (3,327 | ) | ||||||||
Net interest income after provision for loan losses | 4,447 | 8,209 | 19,723 | 22,234 | |||||||||||
Non-interest income: | |||||||||||||||
Depository fees and charges | 810 | 828 | 3,452 | 3,480 | |||||||||||
Loan fees and service charges | 234 | 127 | 970 | 693 | |||||||||||
Gain on sale of securities, net | 45 | 114 | 552 | 174 | |||||||||||
Gain on sale of loans, net | 551 | 537 | 1,319 | 2,250 | |||||||||||
Gain (loss) on real estate owned | 23 | (520 | ) | (257 | ) | (808 | ) | ||||||||
New Markets Tax Credit ("NMTC") fees | — | — | — | 625 | |||||||||||
Lower of cost or market adjustment on loans held-for-sale | — | (32 | ) | (231 | ) | (32 | ) | ||||||||
Other | 226 | 80 | 1,001 | 667 | |||||||||||
Total non-interest income | 1,889 | 1,134 | 6,806 | 7,049 | |||||||||||
Non-interest expense: | |||||||||||||||
Employee compensation and benefits | 2,755 | 2,883 | 11,086 | 11,126 | |||||||||||
Net occupancy expense | 1,054 | 941 | 3,688 | 3,625 | |||||||||||
Equipment, net | 300 | 295 | 983 | 1,184 | |||||||||||
Data processing | 247 | 335 | 1,072 | 1,176 | |||||||||||
Consulting fees | 176 | 114 | 506 | 357 | |||||||||||
Federal deposit insurance premiums | 307 | 254 | 1,236 | 1,248 | |||||||||||
Other | 2,053 | 3,589 | 7,735 | 10,522 | |||||||||||
Total non-interest expense | 6,892 | 8,411 | 26,306 | 29,238 | |||||||||||
(Loss) / income before income taxes | (556 | ) | 932 | 223 | 45 | ||||||||||
Income tax expense | 8 | 64 | 102 | 328 | |||||||||||
Consolidated net (loss) / income | (564 | ) | 868 | 121 | (283 | ) | |||||||||
Less: Net (loss) / income attributable to non-controlling interest | (146 | ) | 181 | (110 | ) | (945 | ) | ||||||||
Net (loss) / income attributable to Carver Bancorp, Inc. | $ | (418 | ) | 687 | $ | 231 | $ | 662 | |||||||
(Loss) / Earnings per common share: | |||||||||||||||
Basic | $ | (0.11 | ) | $ | 0.19 | $ | 0.06 | $ | 0.18 | ||||||
Diluted | $ | (0.11 | ) | $ | 0.19 | $ | 0.06 | $ | 0.18 |
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
Non Performing Asset Table | |||||||||||||||||||
$ in thousands | March 2014 | December 2013 | September 2013 | June 2013 | March 2013 | ||||||||||||||
Loans accounted for on a nonaccrual basis (1): | |||||||||||||||||||
Gross loans receivable: | |||||||||||||||||||
One-to-four family | $ | 2,301 | $ | 3,736 | $ | 4,343 | $ | 6,666 | $ | 7,642 | |||||||||
Multifamily | 2,240 | 1,363 | 758 | 659 | 423 | ||||||||||||||
Commercial real estate | 7,024 | 8,702 | 10,503 | 8,091 | 14,788 | ||||||||||||||
Construction | — | — | 75 | 693 | 1,230 | ||||||||||||||
Business | 993 | 1,120 | 2,457 | 3,350 | 6,505 | ||||||||||||||
Consumer | 1 | 1 | 4 | — | 38 | ||||||||||||||
Total non-performing loans | $ | 12,559 | $ | 14,922 | $ | 18,140 | $ | 19,459 | $ | 30,626 | |||||||||
Other non-performing assets (2): | |||||||||||||||||||
Real estate owned | 1,369 | $ | 1,423 | $ | 970 | $ | 946 | 2,386 | |||||||||||
Loans held-for-sale | 5,011 | 7,678 | 7,854 | 9,709 | 13,107 | ||||||||||||||
Total other non-performing assets | 6,380 | 9,101 | 8,824 | 10,655 | 15,493 | ||||||||||||||
Total non-performing assets (3): | $ | 18,939 | $ | 24,023 | $ | 26,964 | $ | 30,114 | $ | 46,119 | |||||||||
Non-performing loans to total loans | 3.22 | % | 3.80 | % | 4.55 | % | 5.47 | % | 8.27 | % | |||||||||
Non-performing assets to total assets | 2.96 | % | 3.76 | % | 4.25 | % | 4.75 | % | 7.23 | % | |||||||||
(1) Nonaccrual 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 nonaccrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on assessment of the ability to collect on the loan. | |||||||||||||||||||
(2) Other non-performing assets generally represent 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 nonaccrual and are included in the nonaccrual category in the table above. At March 31, 2014, there were $6.3 million TDR loans that have performed in accordance with their modified terms for a period of at least six months. These loans are generally considered performing loans and are not presented in the table above. |
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES | |||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||
$ in thousands | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||
Interest-Earning Assets: | |||||||||||||||||||||
Loans (1) | $ | 402,063 | $ | 5,145 | 5.12 | % | $ | 378,993 | $ | 4,999 | 5.28 | % | |||||||||
Mortgage-backed securities | 41,110 | 238 | 2.32 | % | 49,552 | 187 | 1.51 | % | |||||||||||||
Investment securities | 51,984 | 240 | 1.85 | % | 61,912 | 275 | 1.78 | % | |||||||||||||
Restricted cash deposit | 6,464 | — | 0.03 | % | 10,645 | 1 | 0.03 | % | |||||||||||||
Equity securities (2) | 2,114 | 19 | 3.65 | % | 2,750 | 23 | 3.39 | % | |||||||||||||
Other investments and federal funds sold | 84,025 | 91 | 0.44 | % | 89,188 | 105 | 0.48 | % | |||||||||||||
Total interest-earning assets | 587,760 | 5,733 | 3.90 | % | 593,040 | 5,590 | 3.77 | % | |||||||||||||
Non-interest-earning assets | 14,329 | 12,849 | |||||||||||||||||||
Total assets | $ | 602,089 | $ | 605,889 | |||||||||||||||||
Interest-Bearing Liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing checking | $ | 24,114 | $ | 9 | 0.15 | % | $ | 25,310 | $ | 10 | 0.16 | % | |||||||||
Savings and clubs | 96,183 | 63 | 0.27 | % | 96,617 | 62 | 0.26 | % | |||||||||||||
Money market | 119,907 | 137 | 0.46 | % | 113,918 | 142 | 0.51 | % | |||||||||||||
Certificates of deposit | 199,818 | 503 | 1.02 | % | 201,036 | 537 | 1.08 | % | |||||||||||||
Mortgagors deposits | 1,779 | 7 | 1.60 | % | 1,733 | 7 | 1.64 | % | |||||||||||||
Total deposits | 441,801 | 719 | 0.66 | % | 438,614 | 758 | 0.70 | % | |||||||||||||
Borrowed money | 44,859 | 267 | 2.41 | % | 44,836 | 336 | 3.04 | % | |||||||||||||
Total interest-bearing liabilities | 486,660 | 986 | 0.82 | % | 483,450 | 1,094 | 0.92 | % | |||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Demand | 54,340 | 58,957 | |||||||||||||||||||
Other liabilities | 8,360 | 8,607 | |||||||||||||||||||
Total liabilities | 549,360 | 551,014 | |||||||||||||||||||
Non-controlling interest | (225 | ) | (434 | ) | |||||||||||||||||
Stockholders' equity | 52,954 | 55,309 | |||||||||||||||||||
Total liabilities & stockholders' equity | $ | 602,089 | $ | 605,889 | |||||||||||||||||
Net interest income | $ | 4,747 | $ | 4,496 | |||||||||||||||||
Average interest rate spread | 3.08 | % | 2.85 | % | |||||||||||||||||
Net interest margin | 3.23 | % | 3.03 | % | |||||||||||||||||
(1) Includes nonaccrual loans and deferred fees | |||||||||||||||||||||
(2) Includes FHLB-NY stock |
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES | |||||||||||||||||||||
For the Fiscal Year Ended March 31, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||
$ in thousands | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||
Interest-Earning Assets: | |||||||||||||||||||||
Loans (1) | $ | 385,259 | $ | 20,734 | 5.38 | % | $ | 407,106 | $ | 21,398 | 5.26 | % | |||||||||
Mortgage-backed securities | 49,921 | 1,034 | 2.07 | % | 50,958 | 971 | 1.91 | % | |||||||||||||
Investment securities | 55,643 | 1,016 | 1.83 | % | 53,012 | 874 | 1.65 | % | |||||||||||||
Restricted cash deposit | 7,209 | 1 | 0.03 | % | 7,458 | 2 | 0.03 | % | |||||||||||||
Equity securities (2) | 2,280 | 88 | 3.86 | % | 2,596 | 93 | 3.58 | % | |||||||||||||
Other investments and federal funds sold | 75,945 | 375 | 0.49 | % | 86,122 | 447 | 0.52 | % | |||||||||||||
Total interest-earning assets | 576,257 | 23,248 | 4.03 | % | 607,252 | 23,785 | 3.92 | % | |||||||||||||
Non-interest-earning assets | 23,575 | 9,264 | |||||||||||||||||||
Total assets | $ | 599,832 | $ | 616,516 | |||||||||||||||||
Interest-Bearing Liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing checking | $ | 25,184 | $ | 40 | 0.16 | % | $ | 25,842 | $ | 42 | 0.16 | % | |||||||||
Savings and clubs | 96,424 | 256 | 0.27 | % | 98,785 | 259 | 0.26 | % | |||||||||||||
Money market | 116,535 | 536 | 0.46 | % | 111,148 | 739 | 0.66 | % | |||||||||||||
Certificates of deposit | 191,854 | 1,931 | 1.01 | % | 209,622 | 2,431 | 1.16 | % | |||||||||||||
Mortgagors deposits | 1,955 | 34 | 1.74 | % | 2,079 | 37 | 1.78 | % | |||||||||||||
Total deposits | 431,952 | 2,797 | 0.65 | % | 447,476 | 3,508 | 0.78 | % | |||||||||||||
Borrowed money | 51,264 | 1,154 | 2.25 | % | 44,099 | 1,370 | 3.11 | % | |||||||||||||
Total interest-bearing liabilities | 483,216 | 3,951 | 0.82 | % | 491,575 | 4,878 | 0.99 | % | |||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Demand | 55,405 | 61,293 | |||||||||||||||||||
Other liabilities | 7,127 | 8,236 | |||||||||||||||||||
Total liabilities | 545,748 | 561,104 | |||||||||||||||||||
Non-controlling interest | (180 | ) | (55 | ) | |||||||||||||||||
Stockholders' equity | 54,264 | 55,467 | |||||||||||||||||||
Total liabilities & stockholders' equity | $ | 599,832 | $ | 616,516 | |||||||||||||||||
Net interest income | $ | 19,297 | $ | 18,907 | |||||||||||||||||
Average interest rate spread | 3.21 | % | 2.93 | % | |||||||||||||||||
Net interest margin | 3.35 | % | 3.11 | % | |||||||||||||||||
(1) Includes nonaccrual loans and deferred fees | |||||||||||||||||||||
(2) Includes FHLB-NY stock |
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED SELECTED KEY RATIOS | |||||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||||
March 31 | March 31 | ||||||||||||||||
Selected Statistical Data: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Return on average assets (1) | (0.28 | )% | 0.45 | % | 0.04 | % | 0.11 | % | |||||||||
Return on average stockholders' equity (2) | (2.99 | )% | 4.93 | % | 0.41 | % | 1.18 | % | |||||||||
Net interest margin (3) | 3.23 | % | 3.03 | % | 3.35 | % | 3.11 | % | |||||||||
Interest rate spread (4) | 3.08 | % | 2.85 | % | 3.21 | % | 2.93 | % | |||||||||
Efficiency ratio (5) (10) | 103.86 | % | 149.40 | % | 100.78 | % | 112.64 | % | |||||||||
Operating expenses to average assets (6) (10) | 4.58 | % | 5.55 | % | 4.39 | % | 4.74 | % | |||||||||
Average equity to average assets (7) (10) | 8.80 | % | 9.13 | % | 9.05 | % | 9.00 | % | |||||||||
Average interest-earning assets to average interest-bearing liabilities | 1.21 | x | 1.23 | x | 1.19 | x | 1.24 | x | |||||||||
Basic earnings (loss) per share | $ | (0.11 | ) | $ | 0.19 | $ | 0.06 | $ | 0.18 | ||||||||
Average shares outstanding | 3,696,225 | 3,695,653 | 3,696,149 | 3,695,625 | |||||||||||||
March 31 | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Capital Ratios: | |||||||||||||||||
Tier 1 leverage ratio (8) | 10.44 | % | 10.26 | % | |||||||||||||
Tier 1 risk-based capital ratio (8) | 17.64 | % | 16.99 | % | |||||||||||||
Total risk-based capital ratio (8) | 20.21 | % | 19.55 | % | |||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Non-performing assets to total assets (9) | 2.96 | % | 7.23 | % | |||||||||||||
Non-performing loans to total loans receivable (9) | 3.22 | % | 8.27 | % | |||||||||||||
Allowance for loan losses to total loans receivable | 1.85 | % | 2.97 | % | |||||||||||||
Allowance for loan losses to non-performing loans | 57.59 | % | 35.88 | % | |||||||||||||
(1) Net income/(loss), annualized, divided by average total assets. | |||||||||||||||||
(2) Net income/(loss), annualized, divided by average total stockholders' equity (excludes OCI and Minority interest). | |||||||||||||||||
(3) Net interest income, annualized, divided by average interest-earning assets. | |||||||||||||||||
(4) Combined weighted average interest rate earned less combined weighted average interest rate cost. | |||||||||||||||||
(5) Operating expenses divided by sum of net interest income plus non-interest income. | |||||||||||||||||
(6) Non-interest expenses, annualized, divided by average total assets. | |||||||||||||||||
(7) Average equity divided by average assets for the period ended. | |||||||||||||||||
(8) These ratios reflect consolidated bank only. | |||||||||||||||||
(9) Non-performing assets consist of nonaccrual loans, loans HFS and real estate owned, divided by average total assets. | |||||||||||||||||
(10) Non-GAAP Financial Measures: In addition to evaluating Carver Bancorp's results of operations in accordance with U.S. generally accepted accounting principles ("GAAP"), management routinely supplements their evaluation with an analysis of certain non-GAAP financial measures, such as the efficiency ratio. Management believes this non-GAAP financial measure provides information useful to investors in understanding the Company's underlying operating performance and trends, and facilitates comparisons with the performance of other banks and thrifts. Further, the efficiency ratio is used by management in its assessment of financial performance, including non-interest expense control. |