Attached files
| file | filename |
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| 8-K - CARVER BANCORP INC | a8-kearningsrelease3qfy2012.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 THIRD QUARTER FISCAL YEAR 2012 RESULTS
New York, New York, February 14, 2012 Carver Bancorp, Inc. (the “Company”) (NASDAQ: CARV), the holding company for Carver Federal Savings Bank (“Carver” or the “Bank”), today announced financial results for the three and nine month periods ended December 31, 2011, and the third quarter of its fiscal year ended March 31, 2012 (“fiscal 2012”).
The Company reported a net loss of $0.7 million or a loss per share of $0.26 for the third quarter of fiscal 2012, compared to a net loss of $8.2 million or a loss per share of $49.58, for the prior year period.
“Carver continues to make meaningful progress addressing problem assets, as evidenced by the 18% reduction in non-performing assets during the quarter” said Chairman and CEO Deborah C. Wright. “The improvement was driven by an 8% drop in non-performing loans and a 43% decrease in loans Held for Sale (HFS). Repayments from home sales in our construction portfolio also continue. Our performance was further bolstered by a $1.7 million recovery from repayment of a construction loan.”
Ms. Wright continued: “As a result of our previously reported $55 million capital raise, Carver's capital level continues to exceed regulatory requirements, with a Tier 1 leverage capital ratio of 10.30% versus the required 9.00%, and a total risk-based capital ratio of 17.11% versus the required 13.00%.”
“We continue to experience net interest income erosion caused principally by a reduction in the loan portfolio, and to a lesser extent, by the low interest rate environment compressing industry net interest margins. We are focused on increasing earnings through rebuilding Carver's loan portfolio, though this task will take time given the challenging lending environment. We are also working to increase fee income, principally through ‘Carver Community Cash’, our well received product line designed to serve the unbanked, noted Ms. Wright.”
Income Statement Highlights
Third Quarter Results
The Company reported a net loss for the three months ended December 31, 2011 of $0.7 million compared to a net loss
of $8.2 million for the prior year period. The primary drivers of the current quarter loss are valuation adjustments and charge offs taken to reflect loans HFS at the lower of cost or market.
Net Interest Income
Interest income decreased $1.7 million, or 19.7%, to $6.9 million in the third quarter, compared to the prior year quarter, the variance primarily attributed to a $110.8 million (15.94%) decrease in the average balance of interest earning assets. Interest income also decreased due to a decline in yield. The average yield on mortgage-backed securities fell 64 basis points to 2.52% from 3.16% during the quarter as higher yielding securities experienced early payoffs. The average yield on loans fell 18 basis points to 5.06% from 5.24%. The decline in average loan balances was the direct result of management's continuing efforts to reduce the level of non-performing real estate loans through transfer to HFS and ultimately disposition through sales. The reduction in real estate loans will continue over the next several quarters until troubled debt restructures are complete and the Company rebuilds its loan production capacity.
Interest expense decreased $0.4 million, or 20.3%, to $1.9 million for the third quarter, compared to $2.3 million for the prior year quarter. The decrease was primarily due to a decline in deposit interest expense and borrowings that matured during the quarter.
Provision for Loan Losses
The Company recorded a $0.1 million provision for loan losses for the third quarter compared to $6.2 million for the prior year quarter. For the three months ended December 31, 2011, net charge-offs of $1.1 million were recognized during the period compared to $2.3 million in the prior period. Charge-offs totaling $2.7 million were recognized on loans reclassified to held for sale at fair market value. These charges were partially offset by a $1.7 million recovery on a construction loan which paid off during the quarter.
Non-interest Income
Non-interest income decreased $1.2 million, or 68.1%, to $0.6 million for the third quarter, compared to $1.7 million for the prior year quarter, primarily due to $0.4 million of non-recurring fees that were earned on New Market Tax Credit (NMTC) transactions in the prior period and $0.5 million of held for sale valuation adjustments taken in the current period.
Non-interest Expense
Non-interest expense increased $0.1 million to $7.8 million compared to $7.7 million in the prior year quarter. Higher employee compensation and benefits were offset by lower consulting fees.
Income Taxes
The income tax benefit was $1.0 million for the third quarter compared to an expense of $2.3 million for the prior year period. The income tax benefit in the quarter is primarily due to net operating loss carrybacks that were the result of management reevaluating its tax position in light of the change in control and the company finalizing its current tax returns.
Nine Month Results
The Company reported a net loss for the nine months ended December 31, 2011 of $16.3 million compared to a net loss
of $34.0 million for the prior year period. The net loss is primarily the result of $12.3 million in provision for loan losses which is $8 million less than the provision recorded in the prior year period and the reserve taken against the deferred tax asset in the prior year period.
Net Interest Income
Interest income decreased $6.0 million in the nine 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. $3.8 million of the decrease in interest income was due to lower average balances and $2.2 million was due to lower yields. The average yield on mortgaged-backed securities fell 106 basis points to 2.79% from 3.85%. The average yield on loans fell 46 basis points to 4.91% from 5.37%. The current low interest rate environment, combined with the reduction in interest earning assets, continues to negatively impact interest income.
Interest expense decreased $1.8 million, or 24.4%, to $5.6 million in the nine month period, compared to $7.4 million in the prior year period. The decrease was primarily due to a decline in deposit interest expense of $1.4 million. $0.4 million of the decline was attributed to borrowings which were repaid at maturity during the period.
Provision for Loan Losses
The Company recorded a $12.3 million provision for loan losses for the nine month period, compared to $20.3 million for the prior year period. For the nine months ended December 31, 2011, net charge-offs were $15.0 million compared to net charge-offs of $11.0 million for the prior year period, as the Company moved non-performing loans into held for sale.
Non-interest Income
Non-interest income decreased $3.4 million, or 57.6%, to $2.5 million for the nine month period, compared to $5.8 million for the prior year period. The decline is primarily due to $1.7 million of non-recurring fees that were earned on New Market Tax Credit (NMTC) transactions and $0.8 million gain on sale of securities in the prior period. In addition the current period recognized a valuation adjustment on loans HFS of $0.9 million.
Non-interest Expense
Non-interest expense remained flat at $22.7 million during the period as higher employee compensation and benefits were offset by lower consulting expenses.
Income Taxes
The income tax benefit was $0.9 million for the nine month period compared to an expense of $17.0 million for the prior year period. The income tax benefit in the quarter is primarily due to net operating loss carrybacks that were the result of management reevaluating its tax position in light of the change in control and the company finalizing its current tax returns.
Financial Condition Highlights
At December 31, 2011, total assets decreased $38.5 million, or 5.4%, to $670.7 million compared to $709.2 million at March 31, 2011. Total loans receivable decreased $122.1 million, investment securities decreased $4.0 million and premises and equipment decreased by $1.2 million. These decreases were partially offset by cash and cash equivalents and restricted cash which increased $69 million, loans held for sale increased by $13.3 million, the loan loss provision
increased by $2.7 million, and other assets increased by $3.7 million.
Cash and cash equivalents and restricted cash increased $69 million, to $113.1 million at December 31, 2011, compared to $44.1 million at March 31, 2011. This increase was primarily driven by the capital raise inflow of $55 million, net loan payoffs, pay downs and sales of $108.6 million, which were offset by repayment of institutional deposits totaling $75.5 million and loan originations of $19.3 million. Total securities decreased $4.0 million, or 5.7%, to $67.2 million at December 31, 2011, compared to $71.2 million at March 31, 2011. This change reflects an increase of $2.2 million in available-for-sale securities and $6.2 million decrease in held-to-maturity securities as the Company reinvested funds received from calls on held to maturity securities back into the available for sale portfolio.
Total loans receivable decreased $122.1 million, or 21.0%, to $458.2 million at December 31, 2011, compared to $580.3 million at March 31, 2011. $79.5 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 $40.2 million of loans were transferred from held for investment to held for sale. Principal charge offs for the nine month period totaled $14.5 million. The decreases were offset by loan originations and advances of $19.3 million in the nine month period.
Loans held for sale increased $13.3 million during the nine month period. The Company has taken aggressive steps in working out its problem loans. During the period the portfolio increased $40.2 million which was offset by $26.9 million of sales and paydowns.
Total liabilities decreased $73.7 million, or 10.8%, to $607.8 million at December 31, 2011, compared to $681.5 million at March 31, 2011.
Deposits decreased $75.5 million, or 13.5%, to $485.2 million at December 31, 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 increased $0.8 million, or 0.7%, to $113.4 million at December 31, 2011, compared to $112.6 million at March 31, 2011.
Total equity increased $35.2 million, or 126.9%, to $62.9 million$0.0 million at December 31, 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 nine month period of $16.3 million.
Asset Quality
At December 31, 2011, non-performing assets totaled $93.9 million, or 14.0% of total assets compared to $118.6 million or 17.5% of total assets at September 30, 2011. Non-performing assets at December 31, 2011 were comprised of $47.8 million of loans 90 days or more past due and non-accruing, $18.9 million of loans classified as a troubled debt restructuring, $2.6 million of loans that are either performing or less than 90 days past due and have been deemed to be impaired, $2.2 million of Real Estate Owned (REO) and $22.5 million of loans classified as HFS.
The allowance for loan losses was $20.4 million at December 31, 2011, which represents a ratio of the allowance for loan losses to non-performing loans of 29.46% compared to 27.15% at September 30, 2011. The ratio of the allowance for loan losses to total loans was 4.45% at December 31, 2011 compared to 4.38% at September 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) | |||||||
December 31, | March 31, | ||||||
ASSETS | 2011 | 2011 | |||||
Cash and cash equivalents: | |||||||
Cash and due from banks | $ | 104,854 | $ | 36,725 | |||
Money market investments | 1,821 | 7,352 | |||||
Total cash and cash equivalents | 106,675 | 44,077 | |||||
Restricted cash | 6,415 | — | |||||
Investment securities: | |||||||
Available-for-sale, at fair value | 55,712 | 53,551 | |||||
Held-to-maturity, at amortized cost (fair value of $12,203 and $18,124 at December 31, 2011 and March 31, 2011, respectively) | 11,509 | 17,697 | |||||
Total investments | 67,221 | 71,248 | |||||
Loans held-for-sale (“HFS”) | 22,490 | 9,205 | |||||
Loans receivable: | |||||||
Real estate mortgage loans | 410,848 | 525,894 | |||||
Commercial business loans | 46,077 | 53,060 | |||||
Consumer loans | 1,252 | 1,349 | |||||
Loans, net | 458,177 | 580,303 | |||||
Allowance for loan losses | (20,411 | ) | (23,147 | ) | |||
Total loans receivable, net | 437,766 | 557,156 | |||||
Premises and equipment, net | 9,878 | 11,040 | |||||
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost | 3,969 | 3,353 | |||||
Accrued interest receivable | 2,354 | 2,854 | |||||
Other assets | 13,970 | 10,282 | |||||
Total assets | 670,738 | 709,215 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
LIABILITIES: | |||||||
Deposits: | |||||||
Savings | 101,447 | 106,906 | |||||
Non-Interest Bearing Checking | 74,871 | 123,706 | |||||
NOW | 27,174 | 27,297 | |||||
Money Market | 85,077 | 74,329 | |||||
Certificates of Deposit | 196,626 | 228,460 | |||||
Total Deposits | 485,195 | 560,698 | |||||
Advances from the FHLB-New York and other borrowed money | 113,437 | 112,641 | |||||
Other liabilities | 9,206 | 8,159 | |||||
Total liabilities | 607,838 | 681,498 | |||||
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 | — | |||||
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 | |||||
Common stock (par value $0.01 per share: 10,000,000 shares authorized; 3,697,264 and 168,312 shares issued; 3,697,264 and 165,618 shares outstanding at December 31, 2011 and March 31, 2011, respectively) | 61 | 25 | |||||
Additional paid-in capital | 53,896 | 27,026 | |||||
Accumulated deficit | (37,944 | ) | (21,464 | ) | |||
Non-controlling interest | 2,237 | 4,038 | |||||
Treasury stock, at cost (2,090 shares at December, 2011 and 2,695 and March 31, 2011, respectively) | (447 | ) | (569 | ) | |||
Accumulated other comprehensive loss | (21 | ) | (319 | ) | |||
Total stockholders equity | 62,900 | 27,717 | |||||
Total liabilities and stockholders equity | 670,738 | 709,215 | |||||
(*) 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 OPERATIONS | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Interest Income: | |||||||||||||||
Loans | $ | 6,416 | $ | 8,021 | $ | 20,076 | $ | 25,656 | |||||||
Mortgage-backed securities | 279 | 460 | 1,018 | 1,572 | |||||||||||
Investment securities | 114 | 105 | 340 | 263 | |||||||||||
Money market investments | 102 | 19 | 151 | 77 | |||||||||||
Total interest income | 6,911 | 8,605 | 21,585 | 27,568 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 1,069 | 1,366 | 3,012 | 4,386 | |||||||||||
Advances and other borrowed money | 785 | 960 | 2,560 | 2,984 | |||||||||||
Total interest expense | 1,854 | 2,326 | 5,572 | 7,370 | |||||||||||
Net interest income | 5,057 | 6,279 | 16,013 | 20,198 | |||||||||||
Provision for loan losses | 113 | 6,242 | 12,290 | 20,318 | |||||||||||
Net interest income after provision for loan losses | 4,944 | 37 | 3,723 | (120 | ) | ||||||||||
Non-interest income: | |||||||||||||||
Depository fees and charges | 740 | 725 | 2,212 | 2,224 | |||||||||||
Loan fees and service charges | 203 | 183 | 689 | 618 | |||||||||||
Gain on sale of securities, net | — | 1 | — | 764 | |||||||||||
Gain on sale of loans, net | 19 | (1 | ) | 154 | 7 | ||||||||||
New Market Tax Credit ("NMTC") fees | — | 473 | — | 1,654 | |||||||||||
Lower of Cost or market adjustment on loans held for sale | (530 | ) | — | (905 | ) | — | |||||||||
Other | 121 | 349 | 323 | 569 | |||||||||||
Total non-interest income | 553 | 1,730 | 2,473 | 5,836 | |||||||||||
Non-interest expense: | |||||||||||||||
Employee compensation and benefits | 3,006 | 2,664 | 9,188 | 8,771 | |||||||||||
Net occupancy expense | 903 | 928 | 2,805 | 2,880 | |||||||||||
Equipment, net | 545 | 587 | 1,625 | 1,672 | |||||||||||
Consulting fees | 165 | 498 | 370 | 1,043 | |||||||||||
Federal deposit insurance premiums | 368 | 502 | 1,177 | 1,253 | |||||||||||
Other | 2,789 | 2,459 | 7,531 | 7,120 | |||||||||||
Total non-interest expense | 7,776 | 7,638 | 22,696 | 22,739 | |||||||||||
Loss before income taxes | (2,279 | ) | (5,871 | ) | (16,500 | ) | (17,023 | ) | |||||||
Income tax (benefit)/expense | (1,004 | ) | 2,317 | (927 | ) | 17,018 | |||||||||
Non Controlling interest, net of taxes (1) | (595 | ) | — | 687 | — | ||||||||||
Net loss | (680 | ) | (8,188 | ) | (16,260 | ) | (34,041 | ) | |||||||
Loss per common share: | |||||||||||||||
Basic (*) | $ | (0.26 | ) | $ | (49.58 | ) | $ | (16.81 | ) | $ | (207.67 | ) | |||
(1)The Company has adjusted the non-controlling interest, net of taxes in the Consolidated Statements of Operations for the three and nine months ended December 31, 2011 to adjust for an overstatement of non-controlling interest, net of taxes in the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011, resulting in an overstatement of the net loss. The non-controlling interest, net of taxes reported for each of these periods was overstated by approximately $238 thousand.
(*) Common stock shares for all periods presented reflects a 1 for 15 reverse stock split which was effective on October 27, 2011
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
Non Performing Asset Table | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
December 2011 | September 2011 | June 2011 | March 2011 | December 2010 | |||||||||||||||
Loans accounted for on a non-accrual basis (1): | |||||||||||||||||||
Gross loans receivable: | |||||||||||||||||||
One-to-four family | $ | 12,863 | $ | 14,335 | $ | 16,421 | $ | 15,993 | $ | 16,290 | |||||||||
Multi-family | 2,619 | 9,106 | 9,307 | 6,786 | 14,076 | ||||||||||||||
Commercial real estate | 26,313 | 16,088 | 25,893 | 10,078 | 12,231 | ||||||||||||||
Construction | 17,651 | 31,526 | 54,425 | 37,218 | 40,060 | ||||||||||||||
Business | 9,825 | 7,831 | 9,159 | 7,289 | 7,471 | ||||||||||||||
Consumer | 4 | 36 | 22 | 42 | 20 | ||||||||||||||
Total non-performing loans | $ | 69,275 | $ | 78,922 | $ | 115,227 | $ | 77,406 | $ | 90,148 | |||||||||
Other non-performing assets (2): | |||||||||||||||||||
Real estate owned | $ | 2,183 | $ | 275 | $ | 237 | $ | 564 | $ | — | |||||||||
Loans held for sale | 22,490 | 39,369 | 18,068 | 9,205 | 1,700 | ||||||||||||||
Total other non-performing assets | 24,673 | 39,644 | 18,305 | 9,769 | 1,700 | ||||||||||||||
Total non-performing assets (3): | $ | 93,948 | $ | 118,566 | $ | 133,532 | $ | 87,175 | $ | 91,848 | |||||||||
Accruing loans contractually past due > 90 days (4): | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Non-performing loans to total loans | 15.12 | % | 16.14 | % | 21.18 | % | 13.34 | % | 14.97 | % | |||||||||
Non-performing assets to total assets | 14.01 | % | 17.49 | % | 19.68 | % | 12.29 | % | 12.35 | % | |||||||||
(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. At December 31, 2011 there were $3.1 million TDR loans that had 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. | |||||||||||||||||||
(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 December 31, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||
Loans (1) | $ | 507,153 | $ | 6,416 | 5.06 | % | $ | 612,171 | $ | 8,021 | 5.24 | % | |||||||||
Mortgaged-backed securities | 44,246 | 279 | 2.52 | % | 58,192 | 460 | 3.16 | % | |||||||||||||
Investment securities | 23,554 | 81 | 1.38 | % | 14,563 | 30 | 0.82 | % | |||||||||||||
Restricted Cash Deposit | 6,397 | — | 0.03 | % | — | — | — | % | |||||||||||||
Equity securities (2) | 2,707 | 131 | 19.20 | % | 3,388 | 88 | 10.39 | % | |||||||||||||
Other investments and federal funds sold | 620 | 4 | 2.56 | % | 7,208 | 6 | 0.33 | % | |||||||||||||
Total interest-earning assets | 584,677 | 6,911 | 4.73 | % | 695,522 | 8,605 | 4.95 | % | |||||||||||||
Non-interest-earning assets | 70,173 | 53,562 | |||||||||||||||||||
Total assets | $ | 654,850 | $ | 749,084 | |||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Now demand | $ | 27,191 | 11 | 0.16 | % | $ | 41,456 | 22 | 0.21 | % | |||||||||||
Savings and clubs | 102,960 | 68 | 0.26 | % | 106,629 | 71 | 0.27 | % | |||||||||||||
Money market | 83,690 | 251 | 1.19 | % | 69,227 | 187 | 1.08 | % | |||||||||||||
Certificates of deposit | 193,358 | 728 | 1.49 | % | 301,774 | 1,077 | 1.43 | % | |||||||||||||
Mortgagors deposits | 2,309 | 11 | 1.89 | % | 2,696 | 9 | 1.28 | % | |||||||||||||
Total deposits | 409,508 | 1,069 | 1.04 | % | 521,782 | 1,366 | 1.05 | % | |||||||||||||
Borrowed money | 88,679 | 785 | 3.51 | % | 112,538 | 960 | 3.41 | % | |||||||||||||
Total interest-bearing liabilities | 498,187 | 1,854 | 1.48 | % | 634,320 | 2,326 | 1.47 | % | |||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Demand | 84,585 | 67,995 | |||||||||||||||||||
Other liabilities | 8,449 | 11,470 | |||||||||||||||||||
Total liabilities | 591,221 | 713,785 | |||||||||||||||||||
Minority Interest | — | — | |||||||||||||||||||
Stockholders' equity | 63,629 | 35,299 | |||||||||||||||||||
Total liabilities & stockholders' equity | $ | 654,850 | $ | 749,084 | |||||||||||||||||
Net interest income | $ | 5,057 | $ | 6,279 | |||||||||||||||||
Average interest rate spread | 3.25 | % | 3.48 | % | |||||||||||||||||
Net interest margin | 3.46 | % | 3.61 | % | |||||||||||||||||
(1) Includes non-accrual loans | |||||||||||||||||||||
(2) Includes FHLB-NY stock | |||||||||||||||||||||
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCES | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
For the Nine Months Ended December 31, | |||||||||||||||||||||
2011 | 2010 | ||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||
Loans (1) | $ | 545,267 | $ | 20,076 | 4.91 | % | $ | 636,849 | $ | 25,656 | 5.37 | % | |||||||||
Mortgaged-backed securities | 48,631 | 1,018 | 2.79 | % | 54,380 | 1,572 | 3.85 | % | |||||||||||||
Investment securities | 21,743 | 218 | 1.34 | % | 11,470 | 110 | 1.28 | % | |||||||||||||
Restricted Cash Deposit | 6,969 | 2 | 0.03 | % | — | — | — | % | |||||||||||||
Equity securities (2) | 2,915 | 259 | 11.80 | % | 3,621 | 213 | 7.81 | % | |||||||||||||
Other investments and federal funds sold | 26 | 12 | 59.54 | % | 4,196 | 16 | 0.51 | % | |||||||||||||
Total interest-earning assets | 625,552 | 21,585 | 4.60 | % | 710,516 | 27,568 | 5.17 | % | |||||||||||||
Non-interest-earning assets | 49,847 | 78,893 | |||||||||||||||||||
Total assets | $ | 675,399 | $ | 789,409 | |||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Now demand | 26,451 | 32 | 0.16 | % | 48,513 | 85 | 0.23 | % | |||||||||||||
Savings and clubs | 105,112 | 208 | 0.26 | % | 110,655 | 217 | 0.26 | % | |||||||||||||
Money market | 76,232 | 608 | 1.06 | % | 70,000 | 602 | 1.15 | % | |||||||||||||
Certificates of deposit | 198,780 | 2,135 | 1.43 | % | 310,379 | 3,450 | 1.49 | % | |||||||||||||
Mortgagors deposits | 2,392 | 30 | 1.66 | % | 2,707 | 32 | 1.58 | % | |||||||||||||
Total deposits | 408,967 | 3,012 | 0.98 | % | 542,254 | 4,386 | 1.08 | % | |||||||||||||
Borrowed money | 99,806 | 2,561 | 3.41 | % | 117,036 | 2,984 | 3.41 | % | |||||||||||||
Total interest-bearing liabilities | 508,773 | 5,573 | 1.45 | % | 659,290 | 7,370 | 1.49 | % | |||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Demand | 103,069 | 65,543 | |||||||||||||||||||
Other liabilities | 8,162 | 9,278 | |||||||||||||||||||
Total liabilities | 620,004 | 734,111 | |||||||||||||||||||
Minority Interest | — | — | |||||||||||||||||||
Stockholders' equity | 55,395 | 55,298 | |||||||||||||||||||
Total liabilities & stockholders' equity | $ | 675,399 | $ | 789,409 | |||||||||||||||||
Net interest income | 16,012 | 20,198 | |||||||||||||||||||
Average interest rate spread | 3.15 | % | 3.68 | % | |||||||||||||||||
Net interest margin | 3.41 | % | 3.79 | % | |||||||||||||||||
(1) Includes non-accrual loans | |||||||||||||||||||||
(2) Includes FHLB-NY stock | |||||||||||||||||||||
CARVER BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||
CONSOLIDATED SELECTED KEY RATIOS | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
Selected Statistical Data: | 2011 | 2010 | 2011 | 2010 | |||||||||||||
Return on average assets (1) | (0.42 | )% | (4.37 | )% | (4.81 | )% | (5.75 | )% | |||||||||
Return on average equity (2) | (4.27 | )% | (92.78 | )% | (58.71 | )% | (82.05 | )% | |||||||||
Net interest margin (3) | 3.46 | % | 3.61 | % | 3.41 | % | 3.79 | % | |||||||||
Interest rate spread (4) | 3.25 | % | 3.48 | % | 3.15 | % | 3.68 | % | |||||||||
Efficiency ratio (5) | 138.60 | % | 95.36 | % | 122.77 | % | 87.34 | % | |||||||||
Operating expenses to average assets (6) | 4.75 | % | 4.08 | % | 6.72 | % | 3.84 | % | |||||||||
Average equity to average assets (7) | 9.72 | % | 4.71 | % | 8.20 | % | 7.01 | % | |||||||||
Average interest-earning assets to average interest-bearing liabilities | 1.17 | x | 1.10 | x | 1.23 | x | 1.08 | x | |||||||||
Net loss per share (*) | $ | (0.26 | ) | $ | (49.58 | ) | $ | (16.81 | ) | $ | (207.67 | ) | |||||
Average shares outstanding (*) | 2,621,340 | 165,619 | 984,348 | 165,557 | |||||||||||||
Cash dividends | $ | — | $ | — | $ | — | $ | 0.025 | |||||||||
December 31 | |||||||||||||||||
2011 | 2010 | ||||||||||||||||
Capital Ratios: | |||||||||||||||||
Tier I leverage capital ratio (8) | 10.30 | % | 6.36 | % | |||||||||||||
Tier I risk-based capital ratio (8) | 14.76 | % | 8.64 | % | |||||||||||||
Total risk-based capital ratio (8) | 17.11 | % | 10.82 | % | |||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Non performing assets to total assets (9) | 14.01 | % | 12.12 | % | |||||||||||||
Non performing loans to total loans receivable (9) | 15.12 | % | 14.97 | % | |||||||||||||
Allowance for loan losses to total loans receivable | 4.45 | % | 3.54 | % | |||||||||||||
Allowance for loan losses to non-performing loans | 29.46 | % | 23.65 | % | |||||||||||||
(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 for all periods presented reflects a 1 for 15 reverse stock split which was effective on October 27, 2011