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| 8-K - 2Q 2012 EARNINGS RELEASE - CARVER BANCORP INC | a8-kearningsrelease2qfy2012.htm |
Contact: | Ruth Pachman/Michael Herley | Mark A. Ricca | |
Kekst and Company | Carver Bancorp, Inc. | ||
(212) 521-4800 | (212) 360-8820 | ||
CARVER BANCORP, INC. REPORTS SECOND QUARTER FISCAL YEAR 2012 RESULTS
New York, New York, November 14, 2011 - Carver Bancorp, Inc. (the “Company”) (NASDAQ: CARVD), the holding company for Carver Federal Savings Bank (“Carver” or the “Bank”), today announced financial results for the three month period ending September 30, 2011, the second quarter of its fiscal year ending March 31, 2012 (“fiscal 2012”).
The Company reported a net loss of $9.5 million or a loss per share of $58.67 (after the 1 for 15 reverse stock split) for the second quarter of fiscal 2012 compared to a net loss of $23.4 million or a loss per share of $141.72 (after the 1 for 15 reverse stock split)for the prior year period.
“Carver continues to make headway with its aggressive posture toward addressing problem assets, as evidenced by the move of an additional $26.7 million into Loans Held for Sale (HFS) during the quarter” said Deborah C. Wright, Carver Bancorp, Inc.'s Chairman and CEO. “Sales of $11.4 million of the $39.4 million in HFS at the end of the quarter have already closed with the proceeds of the sales substantially equal to the carrying value. As we reported in the first quarter, we also continue to see repayment levels from home sales in our construction portfolio. At the same time, loan resolution activities, coupled with continued economic weakness and a drop in real estate valuations in some parts of our markets, continue to impact our results."
Ms. Wright continued: "The key to Carver returning to profitability is to build on our successful capital raise with additional improvements in asset quality. As a result of our previously reported capital raise of $55 million, Carver's capital level exceeds regulatory requirements, with a Tier 1 leverage capital ratio of 9.10% versus the required 9.00% and total risk-based capital ratio of 14.38% versus the required 13.00%. We are also making excellent strides in the second major step in the process with the dispositions in the HFS portfolio and improvements in delinquencies and non-performing loans, and that will continue to be our priority goal."
“Carver is also looking to the future. 'Carver Community Cash', our new product line designed to meet the daily transactional needs of the unbanked, including check cashing, is a key part of our path to revenue growth", noted Ms. Wright. This product line is also a core element in building relationships with new and existing institutional customers and in introducing Carver to a new segment of retail customers.
Income Statement Highlights
Second Quarter Results
The Company reported a net loss for the three months ended September 30, 2011 of $9.5 million compared to a net loss of $23.4 million for the prior year period. The primary driver of the current quarter loss is the elevated levels of charge offs incurred on those loans that were reclassified to held for sale at fair market value. The prior period loss was due to a $20.7 million valuation allowance that was taken on the Company's deferred tax asset in the prior period.
Net Interest Income
Interest income decreased $1.9 million in the second quarter, compared to the prior year quarter, due to the drop in yields on interest bearing assets and the decrease in the average balance of interest earning assets. $1.2 million of the decrease in interest income was due to a decrease in average balances and $0.7 million reflects lower yields. The average yield on mortgage-backed securities fell 148 basis points to 2.82% from 4.30% during the quarter as higher yielding held to maturity securities were replaced with lower yielding agency investments. The average yield on loans fell 35 basis points to 5.07% from 5.42%. The decline in average loans was the direct result of management's continuing efforts to reduce the level of non-performing real estate loans by transferring them from the held for investment portfolio to the held for sale portfolio (and subsequent disposition of the asset). The reduction in real estate loans will continue over the next several quarters until troubled debt restructures are complete and the Company's concentration in real estate assets meets regulatory guidelines.
Interest expense decreased $0.7 million, or 29.1%, to $1.8 million for the second quarter, compared to $2.5 million for the prior year quarter. The decrease was primarily due to a decline in deposit interest expense of $0.6 million. The decrease in interest expense reflects a 7 basis point decrease in the average cost of interest-bearing liabilities to 1.41% for the second quarter, compared to an average cost of 1.48% for the prior year period. A decrease of $0.5 million was due to continued downward re-pricing of certificates of deposits and and money market savings
Provision for Loan Losses
The Company recorded a $7.0 million provision for loan losses for the second quarter compared to $7.8 million for the prior year quarter. For the three months ended September 30, 2011, net charge-offs of $7.0 million were taken on those loans that were reclassified to held for sale at fair market value compared to net charge-offs of $6.0 million for the prior year period. The amount of the provision reflects the Company's continued high levels of delinquencies and non-performing loans, the overall inherent risk in the portfolio and a drop in real estate valuations in some parts of our markets.
Non-interest Income
Non-interest income decreased $1.4 million, or 63.1%, to $0.8 million for the second quarter, compared to $2.2 million for the prior year quarter primarily due to non-recurring fees that were earned on New Market Tax Credit (NMTC) transactions in the prior period and a gain on sale of securities.
Non-interest Expense
Non-interest expense remained flat at $7.6 million compared to the prior year quarter. Higher employee compensation and benefits were offset by lower consulting fees.
Income Taxes
The income tax expense was $0.2 million for the second quarter compared to $17.0 million for the prior year period. The decrease
in expense is primarily due to the establishment of a $20.7 million valuation allowance against the deferred tax asset offset with a $3.7 million tax benefit that was taken in the prior period.
Six Month Results
The Company reported a net loss for the six months ended September 30, 2011 of $15.6 million compared to a net loss of $25.9 million for the prior year period. The net loss is primarily the result of $12.2 million in provision for loan losses which is less than the provision recorded in the prior year period.
Net Interest Income
Interest income decreased $4.3 million in the six month period, compared to the prior year period, due to the drop in yields on interest bearing assets and the decrease in the average balance of interest earning assets. $2.3 million of the decrease in interest income was due to lower average balances and $2.0 million was due to lower yields. The average yield on mortgaged-backed securities fell 133 basis points to 2.91% from 4.24%. The average yield on loans fell 59 basis points to 4.84% from 5.43% primarily due to the growth in non-accrual loans in the first quarter. The current low interest rate environment, combined with first quarter's elevated levels of non-performing assets and a reduction in interest earning assets, continues to constrain net interest income.
Interest expense decreased $1.3 million, or 26.3%, to $3.7 million in the six month period, compared to $5.0 million for the prior year period. The decrease was primarily due to a decline in deposit interest expense of $1.1 million. The decrease in interest expense reflects a 6 basis point decrease in the average cost of interest-bearing liabilities to 1.44% for the second quarter, compared to an average cost of 1.50% for the prior year period. A decrease of $0.9 million was due to continued downward re-pricing of certificates of deposits and deleveraging of the Certificate of Deposit Account Registry Service "CDARS" portfolio.
Provision for Loan Losses
The Company recorded a $12.2 million provision for loan losses for the six month period compared to $14.1 million for the prior year period. For the six months ended September 30, 2011, net charge-offs were $11.4 million compared to net charge-offs of $8.7 million for the prior year period. The amount of the provision reflects the Company's continued high levels of delinquencies and non-performing loans, the overall inherent risk in the portfolio and a drop in real estate valuations in some parts of our markets.
Non-interest Income
Non-interest income decreased $2.2 million, or 53.27%, to $1.9 million for the six month period, compared to $4.1 million for the prior year period primarily due to non-recurring fees that were earned on New Market Tax Credit (NMTC) transactions and gain on sale of securities in the prior period.
Non-interest Expense
Non-interest expense decreased $0.2 million, or 1.2%, to $14.9 million compared to $15.1 million for the prior year period, primarily due to lower consulting fees incurred in the current period.
Income Taxes
The income tax expense was $0.1 million for the six month period compared to an expense of $14.7 million expense for the prior year period. The expense for the six month period ending September 30, 2011 is primarily related to state and local income tax expense recorded in the quarter.
Financial Condition Highlights
At September 30, 2011, total assets decreased $31.2 million, or 4.4% , to $678.0 million compared to $709.2 million at March 31, 2011. Total loans receivable decreased $91.4 million and investment securities decreased $1.8 million. These decreases were partially offset by cash and cash equivalents and restricted cash which increased $32.2 million, and loans held for sale which increased by $30.2 million.
Cash and cash equivalents and restricted cash increased $32.2 million, to $76.3 million at September 30, 2011, compared to $44.1 million at March 31, 2011. This increase was primarily driven by $35.1 million in repayment of loans and loan sales.Total securities decreased $1.8 million, or 2.5%, to $69.5 million at September 30, 2011, compared to $71.2 million at March 31, 2011. This change reflects an increase of $4.0 million in available-for-sale securities and $5.8 million decrease in held-to-maturity securities as the Company reinvested cash flows from held to maturity securities back into the available for sale portfolio.
Total loans receivable decreased $91.4 million, or 15.7%, to $489.0 million at September 30, 2011, compared to $580.3 million at March 31, 2011. $50.2 million of principal repayments across all loan classifications contributed to the majority of the decrease, with the largest impact from Commercial Real Estate, Construction and Business loans. Additionally $34.1 million of loans were transferred from held for investment to held for sale as the Company works out its problem loans. Charge offs for the six month period totaled $6.4 million. The decreases were offset by loan originations of $8.8 million in the six month period.
Total liabilities decreased $67.3 million, or 9.9%, to $614.2 million at September 30, 2011, compared to $681.5 million at March 31, 2011.
Deposits decreased $60.9 million, or 10.9%, to $499.8 million at September 30, 2011, compared to $560.7 million at March 31, 2011. Certificates of deposit and NOW balances have declined due to reductions in institutional deposits.
Advances from the FHLB-NY and other borrowed money decreased $10.1 million, or 9.0%, to $102.5 million at September 30, 2011, compared to $112.6 million at March 31, 2011. The decline was due to two fixed-rate borrowings maturing during the period and one $5 million advance that was secured at the end of the second quarter.
Total equity increased $36.0 million, or 129.9%, to $63.7 million at September 30, 2011, compared to $27.7 million at March 31, 2011. The key component of this increase was a $55 million capital raise closed on June 29, 2011 as previously reported in Form 8-K filed with the Securities and Exchange Commission on June 29, 2011. The increase in equity from the capital raise was partially offset by expenses of approximately $3.6 million related to the capital raise and the net loss for the six month period of $15.6 million.
Asset Quality
At September 30, 2011, non-performing assets totaled $118.6 million, or 17.5% of total assets compared to $133.5 million or 19.7% of total assets at June 30, 2011. Non-performing assets at September 30, 2011 were comprised of $59.4 million of loans 90 days or more past due and non-accruing, $15.6 million of loans classified as a troubled debt restructuring and either not consistently performing in accordance with modified terms or not performing in accordance with modified terms for at least six months, $4.0 million of loans that are either performing or less than 90 days past due and have been deemed to be impaired, $0.3
million of Real Estate Owned (REO) and $39.6 million of loans classified as held for sale.
The allowance for loan losses was $21.4 million at September 30, 2011, which represents a ratio of the allowance for loan losses to non-performing loans of 27.2% compared to 20.62% at June 30, 2011. The ratio of the allowance for loan losses to total loans remained constant at 4.4% at September 30, 2011 compared to June 30, 2011.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank, founded in 1948 to serve African-American communities whose residents, businesses and institutions had limited access to mainstream financial services. Carver, the largest African- and Caribbean-American run bank in the United States, operates nine full-service branches in the New York City boroughs of Brooklyn, Manhattan and Queens. For further information, please visit the Company's website at www.carverbank.com.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, risks and uncertainties. More information about these factors, risks and uncertainties is contained in our filings with the Securities and Exchange Commission.
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
(In thousands, except per share data) | |||||||
September 30, | March 31, | ||||||
ASSETS | 2011 | 2011 | |||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 69,425 | $ | 36,725 | |||
Money market investments | 592 | 7,352 | |||||
Total cash and cash equivalents | 70,017 | 44,077 | |||||
Restricted cash | 6,275 | — | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 57,575 | 53,551 | |||||
Held-to-maturity, at amortized cost (fair value of $12,552 and $18,124 at September 30, 2011 and March 31, 2011, respectively) | 11,901 | 17,697 | |||||
Total investments | 69,476 | 71,248 | |||||
Loans held-for-sale (“HFS”) | 39,369 | 9,205 | |||||
Loans receivable: | |||||||
Real estate mortgage loans | 435,603 | 525,894 | |||||
Commercial business loans | 52,069 | 53,060 | |||||
Consumer loans | 1,280 | 1,349 | |||||
Loans, net | 488,952 | 580,303 | |||||
Allowance for loan losses | (21,429 | ) | (23,147 | ) | |||
Total loans receivable, net | 467,523 | 557,156 | |||||
Premises and equipment, net | 10,433 | 11,040 | |||||
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost | 2,844 | 3,353 | |||||
Accrued interest receivable | 2,483 | 2,854 | |||||
Other assets | 9,552 | 10,282 | |||||
Total assets | 677,972 | 709,215 | |||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | |||||||
LIABILITIES: | |||||||
Deposits: | |||||||
Savings | 104,086 | 106,906 | |||||
Non-Interest Bearing Checking | 95,986 | 123,706 | |||||
NOW | 25,319 | 27,297 | |||||
Money Market | 83,060 | 74,329 | |||||
Certificates of Deposit | 191,371 | 228,460 | |||||
Total Deposits | 499,822 | 560,698 | |||||
Advances from the FHLB-New York and other borrowed money | 102,513 | 112,641 | |||||
Other liabilities | 11,904 | 8,159 | |||||
Total liabilities | 614,239 | 681,498 | |||||
Mezzanine Equity: | |||||||
55,000 Series C mandatorily convertible preferred stock,(par value $0.01, per share) with a liquidation preference of $1,000, issued and outstanding | 51,432 | — | |||||
Stockholders' equity: | |||||||
Preferred stock (par value $0.01 per share, 2,000,000 shares authorized; 18,980 Series B shares, with a liquidation preference of $1,000 per share, issued and outstanding. | 18,980 | 18,980 | |||||
Common stock (par value $0.01 per share: 10,000,000 shares authorized; 168,312 shares issued; 166,013 and 165,618 shares outstanding at September 30, 2011 and March 31, 2011, respectively) (*) | 25 | 25 | |||||
Additional paid-in capital | 28,406 | 27,026 | |||||
Accumulated deficit | (37,235 | ) | (21,464 | ) | |||
Non-controlling interest | 2,837 | 4,038 | |||||
Treasury stock, at cost (2,298 shares at September, 2011 and 2,695 and March 31, 2011, respectively) (*) | (488 | ) | (569 | ) | |||
Accumulated other comprehensive loss | (224 | ) | (319 | ) | |||
Total stockholders equity | 12,301 | 27,717 | |||||
Total equity | 63,733 | 27,717 | |||||
Total liabilities, mezzanine equity and stockholders equity | 677,972 | 709,215 | |||||
See accompanying notes to consolidated financial statements | |||||||
(*) Common stock shares reflect 1 for 15 reverse stock split which was effective on October 27, 2011 | |||||||
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Interest Income: | |||||||||||||||
Loans | $ | 6,958 | $ | 8,686 | $ | 13,660 | $ | 17,634 | |||||||
Mortgage-backed securities | 342 | 525 | 739 | 1,111 | |||||||||||
Investment securities | 116 | 94 | 226 | 158 | |||||||||||
Money market investments | 25 | 38 | 49 | 59 | |||||||||||
Total interest income | 7,441 | 9,343 | 14,674 | 18,962 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 937 | 1,504 | 1,943 | 3,021 | |||||||||||
Advances and other borrowed money | 827 | 983 | 1,776 | 2,024 | |||||||||||
Total interest expense | 1,764 | 2,487 | 3,719 | 5,045 | |||||||||||
Net interest income | 5,677 | 6,856 | 10,955 | 13,917 | |||||||||||
Provision for loan losses | 7,007 | 7,829 | 12,177 | 14,077 | |||||||||||
Net interest income after provision for loan losses | (1,330 | ) | (973 | ) | (1,222 | ) | (160 | ) | |||||||
Non-interest income: | |||||||||||||||
Depository fees and charges | 751 | 742 | 1,472 | 1,499 | |||||||||||
Loan fees and service charges | 208 | 214 | 486 | 435 | |||||||||||
Gain on sale of securities, net | — | 739 | — | 763 | |||||||||||
Gain on sale of loans, net | 134 | 4 | 134 | 7 | |||||||||||
New Market Tax Credit ("NMTC") fees | — | 370 | — | 1,182 | |||||||||||
Lower of Cost or market adjustment on loans held for sale | (275 | ) | — | (375 | ) | — | |||||||||
Other | 10 | 176 | 202 | 222 | |||||||||||
Total non-interest income | 828 | 2,245 | 1,919 | 4,108 | |||||||||||
Non-interest expense: | |||||||||||||||
Employee compensation and benefits | 3,137 | 2,901 | 6,182 | 6,107 | |||||||||||
Net occupancy expense | 970 | 975 | 1,902 | 1,952 | |||||||||||
Equipment, net | 537 | 548 | 1,080 | 1,086 | |||||||||||
Consulting fees | 116 | 326 | 206 | 545 | |||||||||||
Federal deposit insurance premiums | 355 | 394 | 809 | 750 | |||||||||||
Other | 2,512 | 2,492 | 4,740 | 4,660 | |||||||||||
Total non-interest expense | 7,627 | 7,636 | 14,919 | 15,100 | |||||||||||
Loss before income taxes | (8,129 | ) | (6,364 | ) | (14,222 | ) | (11,152 | ) | |||||||
Income tax expense | 185 | 16,998 | 76 | 14,702 | |||||||||||
Non Controlling interest, net of taxes | 1,136 | — | 1,282 | — | |||||||||||
Net loss | (9,450 | ) | (23,362 | ) | (15,580 | ) | (25,854 | ) | |||||||
Loss per common share: | |||||||||||||||
Basic (*) | $ | (58.67 | ) | $ | (141.72 | ) | $ | (95.68 | ) | $ | (158.12 | ) | |||
See accompanying notes to consolidated financial statements | |||||||||||||||
(*) Common stock shares reflect 1 for 15 reverse stock split which was effective on October 27, 2011
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
Non Performing Asset Table | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
September 2011 | June 2011 | March 2011 | December 2010 | September 2010 | |||||||||||||||
Loans accounted for on a non-accrual basis (1): | |||||||||||||||||||
Gross loans receivable: | |||||||||||||||||||
One-to-four family | $ | 14,335 | $ | 16,421 | $ | 15,993 | $ | 16,290 | $ | 14,583 | |||||||||
Multi-family | 9,106 | 9,307 | 6,786 | 14,076 | 14,103 | ||||||||||||||
Commercial real estate | 16,088 | 25,893 | 10,078 | 12,231 | 11,189 | ||||||||||||||
Construction | 31,526 | 54,425 | 37,218 | 40,060 | 36,145 | ||||||||||||||
Business | 7,831 | 9,159 | 7,289 | 7,471 | 3,699 | ||||||||||||||
Consumer | 36 | 22 | 42 | 20 | 37 | ||||||||||||||
Total non-performing loans | $ | 78,922 | $ | 115,227 | $ | 77,406 | $ | 90,148 | $ | 79,756 | |||||||||
Other non-performing assets (2): | |||||||||||||||||||
Real estate owned | $ | 275 | $ | 237 | $ | 564 | $ | — | $ | 19 | |||||||||
Loans held for sale | 39,369 | 18,068 | 9,205 | 1,700 | 550 | ||||||||||||||
Total other non-performing assets | 39,644 | 18,305 | 9,769 | 1,700 | 569 | ||||||||||||||
Total non-performing assets (3): | $ | 118,566 | $ | 133,532 | $ | 87,175 | $ | 91,848 | $ | 80,325 | |||||||||
Accruing loans contractually past due > 90 days (4): | $ | — | $ | — | $ | — | $ | — | $ | 1,765 | |||||||||
Non-performing loans to total loans | 16.14 | % | 21.18 | % | 13.34 | % | 14.97 | % | 12.88 | % | |||||||||
Non-performing assets to total assets | 17.49 | % | 19.68 | % | 12.29 | % | 12.35 | % | 10.64 | % | |||||||||
(1) Non-accrual status denotes any loan where the delinquency exceeds 90 days past due and in the opinion of management the collection of additional interest 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. | |||||||||||||||||||
(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. TDR loans that have performed in accordance with their modified terms for a period of at least six months are generally considered performing loans and are not presented in the table above. | |||||||||||||||||||
(4) Loans 90 days or more past due and still accruing, which were not included in the non-performing category, are presented in the above table. | |||||||||||||||||||
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||
Loans (1) | $ | 548,886 | $ | 6,958 | 5.07 | % | $ | 641,156 | $ | 8,686 | 5.42 | % | |||||||||
Mortgaged-backed securities | 48,532 | 342 | 2.82 | % | 48,872 | 525 | 4.30 | % | |||||||||||||
Investment securities | 23,436 | 79 | 1.35 | % | 12,966 | 47 | 1.45 | % | |||||||||||||
Restricted Cash Deposit | 6,215 | — | 0.03 | % | — | ||||||||||||||||
Equity securities (2) | 2,705 | 57 | 8.36 | % | 3,469 | 80 | 9.15 | % | |||||||||||||
Other investments and federal funds sold | 649 | 5 | 3.06 | % | 3,980 | 5 | 0.50 | % | |||||||||||||
Total interest-earning assets | 630,423 | 7,441 | 4.72 | % | 710,443 | 9,343 | 5.26 | % | |||||||||||||
Non-interest-earning assets | 44,432 | 94,681 | |||||||||||||||||||
Total assets | $ | 674,855 | $ | 805,124 | |||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Now demand | $ | 25,088 | 10 | 0.16 | % | $ | 61,917 | 32 | 0.21 | % | |||||||||||
Savings and clubs | 105,011 | 69 | 0.26 | % | 109,254 | 74 | 0.27 | % | |||||||||||||
Money market | 77,264 | 188 | 0.97 | % | 69,967 | 192 | 1.10 | % | |||||||||||||
Certificates of deposit | 188,642 | 663 | 1.39 | % | 312,460 | 1,197 | 1.53 | % | |||||||||||||
Mortgagors deposits | 2,008 | 7 | 1.38 | % | 2,257 | 9 | 1.60 | % | |||||||||||||
Total deposits | 398,013 | 937 | 0.93 | % | 555,855 | 1,504 | 1.08 | % | |||||||||||||
Borrowed money | 98,364 | 827 | 3.34 | % | 114,110 | 983 | 3.45 | % | |||||||||||||
Total interest-bearing liabilities | 496,377 | 1,764 | 1.41 | % | 669,965 | 2,487 | 1.48 | % | |||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Demand | 96,605 | 68,257 | |||||||||||||||||||
Other liabilities | 8,751 | 7,695 | |||||||||||||||||||
Total liabilities | 601,733 | 745,917 | |||||||||||||||||||
Minority Interest | — | — | |||||||||||||||||||
Stockholders' equity | 73,122 | 59,207 | |||||||||||||||||||
Total liabilities & stockholders' equity | $ | 674,855 | $ | 805,124 | |||||||||||||||||
Net interest income | $ | 5,677 | $ | 6,856 | |||||||||||||||||
Average interest rate spread | 3.31 | % | 3.78 | % | |||||||||||||||||
Net interest margin | 3.60 | % | 3.86 | % | |||||||||||||||||
(1) Includes non-accrual loans | |||||||||||||||||||||
(2) Includes FHLB-NY stock | |||||||||||||||||||||
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
For the Six Months Ended September 30, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||
Loans (1) | $ | 564,430 | $ | 13,660 | 4.84 | % | $ | 649,255 | $ | 17,635 | 5.43 | % | |||||||||
Mortgaged-backed securities | 50,835 | 739 | 2.91 | % | 52,464 | 1,112 | 4.24 | % | |||||||||||||
Investment securities | 20,833 | 138 | 1.32 | % | 9,915 | 81 | 1.63 | % | |||||||||||||
Restricted Cash Deposit | 6,215 | 1 | 0.03 | % | — | ||||||||||||||||
Equity securities (2) | 3,020 | 128 | 8.45 | % | 3,737 | 125 | 6.67 | % | |||||||||||||
Other investments and federal funds sold | 770 | 9 | 2.33 | % | 2,681 | 10 | 0.74 | % | |||||||||||||
Total interest-earning assets | 646,103 | 14,675 | 4.54 | % | 718,052 | 18,963 | 5.28 | % | |||||||||||||
Non-interest-earning assets | 39,630 | 91,628 | |||||||||||||||||||
Total assets | $ | 685,733 | $ | 809,680 | |||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Now demand | 26,079 | 21 | 0.16 | % | 52,061 | 63 | 0.24 | % | |||||||||||||
Savings and clubs | 106,194 | 140 | 0.26 | % | 112,679 | 147 | 0.26 | % | |||||||||||||
Money market | 72,482 | 357 | 0.98 | % | 70,388 | 415 | 1.18 | % | |||||||||||||
Certificates of deposit | 201,506 | 1,406 | 1.39 | % | 314,705 | 2,374 | 1.50 | % | |||||||||||||
Mortgagors deposits | 2,433 | 19 | 1.56 | % | 2,712 | 22 | 1.62 | % | |||||||||||||
Total deposits | 408,694 | 1,943 | 0.95 | % | 552,545 | 3,021 | 1.09 | % | |||||||||||||
Borrowed money | 105,400 | 1,777 | 3.36 | % | 119,298 | 2,024 | 3.38 | % | |||||||||||||
Total interest-bearing liabilities | 514,094 | 3,720 | 1.44 | % | 671,843 | 5,045 | 1.50 | % | |||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Demand | 112,362 | 64,311 | |||||||||||||||||||
Other liabilities | 7,971 | 8,171 | |||||||||||||||||||
Total liabilities | 634,427 | 744,325 | |||||||||||||||||||
Minority Interest | — | — | |||||||||||||||||||
Stockholders' equity | 51,306 | 65,355 | |||||||||||||||||||
Total liabilities & stockholders' equity | $ | 685,733 | $ | 809,680 | |||||||||||||||||
Net interest income | 10,955 | 13,918 | |||||||||||||||||||
Average interest rate spread | 3.10 | % | 3.78 | % | |||||||||||||||||
Net interest margin | 3.39 | % | 3.88 | % | |||||||||||||||||
(1) Includes non-accrual loans | |||||||||||||||||||||
(2) Includes FHLB-NY stock | |||||||||||||||||||||
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED SELECTED KEY RATIOS | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
Selected Statistical Data: | 2011 | 2010 | 2011 | 2010 | |||||||||||||
Return on average assets (1) | (5.60 | )% | (11.61 | )% | (4.54 | )% | (6.39 | )% | |||||||||
Return on average equity (2) | (51.69 | )% | (157.82 | )% | (60.73 | )% | (79.08 | )% | |||||||||
Net interest margin (3) | 3.60 | % | 3.86 | % | 3.39 | % | 3.88 | % | |||||||||
Interest rate spread (4) | 3.31 | % | 3.78 | % | 3.10 | % | 3.78 | % | |||||||||
Efficiency ratio (5) | 117.25 | % | 83.9 | % | 115.88 | % | 83.78 | % | |||||||||
Operating expenses to average assets (6) | 4.52 | % | 3.79 | % | 4.35 | % | 3.73 | % | |||||||||
Average equity to average assets (7) | 10.84 | % | 7.35 | % | 7.48 | % | 8.08 | % | |||||||||
Average interest-earning assets to average interest-bearing liabilities | 1.27 | x | 1.06 | x | 1.26 | 1.06 | |||||||||||
Net loss per share (1) | $ | (58.67 | ) | $ | (141.72 | ) | $ | (95.68 | ) | $ | (158.12 | ) | |||||
Average shares outstanding (1) | 165,983 | 165,535 | 165,829 | 165,526 | |||||||||||||
Cash dividends | $ | — | $ | — | $ | — | $ | 0.025 | |||||||||
September 30, | |||||||||||||||||
2011 | 2010 | ||||||||||||||||
Capital Ratios: | |||||||||||||||||
Tier I leverage capital ratio (8) | 9.10 | % | 6.44 | % | |||||||||||||
Tier I risk-based capital ratio (8) | 12.11 | % | 8.62 | % | |||||||||||||
Total risk-based capital ratio (8) | 14.38 | % | 10.77 | % | |||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Non performing assets to total assets (9) | 17.49 | % | 10.57 | % | |||||||||||||
Non performing loans to total loans receivable (9) | 16.14 | % | 12.88 | % | |||||||||||||
Allowance for loan losses to total loans receivable | 4.38 | % | 2.81 | % | |||||||||||||
Allowance for loan losses to non-performing loans | 27.15 | % | 21.85 | % | |||||||||||||
(1) Net loss, annualized, divided by average total assets. | |||||||||||||||||
(2) Net loss, annualized, divided by average total equity. | |||||||||||||||||
(3) Net interest income, annualized, divided by average interest-earning assets. | |||||||||||||||||
(4) Combined weighted average interest rate earned less combined weighted average interest rate cost. | |||||||||||||||||
(5) Operating expenses divided by sum of net interest income plus non-interest income. | |||||||||||||||||
(6) Non-interest expenses, annualized, divided by average total assets. | |||||||||||||||||
(7) Average equity divided by average assets for the period ended. | |||||||||||||||||
(8) These ratios reflect consolidated bank only. | |||||||||||||||||
(9) Non performing assets consist of non-accrual loans, and real estate owned | |||||||||||||||||
(*) Common stock shares reflect 1 for 15 reverse stock split which was effective on October 27, 2011