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Form 8-K CARVER BANCORP INC For: Jun 30

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June 30, 2015 8:50 AM EDT




    
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________
 
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
 
June 30, 2014
__________
 
CARVER BANCORP, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
DELAWARE
(STATE OR OTHER JURISDICTION OF INCORPORATION)

1-13007
13-3904174
(COMMISSION FILE NUMBER)
(I.R.S. EMPLOYER IDENTIFICATION NO.)

75 West 125th Street
New York, NY  10027-4512
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)


(212) 360-8820
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¬
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))
 

Item 2.02 Results of Operations and Financial Condition

On June 29, 2015, Carver Bancorp, Inc. (the “Company”) issued a press release reporting financial results for its fourth quarter and fiscal year ended March 31, 2015. A copy of the press release is attached as Exhibit 99.1 to this report and incorporated herein by reference. The Company does not intend for this Item 2.02 or Exhibit 99.1 to be deemed “filed” for




purposes of Section 18 of the Securities and Exchange Act of 1934 or to be incorporated by reference into filings under the Securities Act of 1933.
 
Item 9.01 Financial Statements and Exhibits

(d)
Exhibits
 
The following exhibit is filed as part of this report:
 
99.1   Press release entitled “CARVER BANCORP, INC. REPORTS FISCAL YEAR 2015 AND FOURTH QUARTER RESULTS”, dated June 29, 2015.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized.

DATE: June 30, 2015


BY:
            /David L. Toner/
 
 
David L. Toner
 
 
First Senior Vice President and Chief Financial Officer

 
 
 
 





                        
CARVER BANCORP, INC. REPORTS FISCAL YEAR 2015 AND FOURTH QUARTER RESULTS


New York, New York, June 29, 2015 Carver Bancorp, Inc. (the “Company”) (NASDAQ: CARV), the holding company for Carver Federal Savings Bank (“Carver” or the “Bank”), today announced financial results for its fourth quarter and fiscal year ended March 31, 2015 (“Fiscal 2015”).

The Company reported net loss of $126 thousand, or basic and diluted loss per share of $0.03, for the fourth quarter of its fiscal year ended March 31, 2015, compared to a net loss of $769 thousand, or basic and diluted loss per share of $0.21, for the quarter ended March 31, 2014. For the year ended March 31, 2015, the Company reported net income of $364 thousand, or basic and diluted earnings per share of $0.10, compared to a net loss of $836 thousand, or basic and diluted loss per share of $0.23, for the comparative prior year period.

Michael T. Pugh, the Company's President and CEO said:  “We are cautiously optimistic by our continued financial progress as we report a profitable fiscal year in spite of a fourth quarter loss. The fourth quarter loss primarily reflects continued interest rate compression and slower than anticipated loan growth. Looking ahead, we remain focused on growing our loan portfolio, maintaining strong capital ratios, improving asset quality, and increasing core deposits. Our new business efforts generated an 11% increase in loans during the quarter and 24% growth fiscal year-to-date. This positions us well for the eventual return of customary margins. Carver’s capital ratios remain strong, with our Tier 1 capital ratio increasing to 10.85%, and our non-performing loan ratios are near industry norms. We grew our core deposits by $19 million in the fiscal year, representing a 7% increase. These deposits remain a critical source of low-cost funding for profitable and meaningful lending in the communities we serve.”

“With an enhanced banking platform in place, our new business team is focused on providing solutions to small business customers, including the growing segment of women and minority business entrepreneurs throughout the communities we serve. In fact, we recently partnered with the New York State Small Business Development Center on a two-day seminar to strengthen the skill-sets of small businesses, middle-managers, and aspiring entrepreneurs in the local community.”

Mr. Pugh concluded, "As we move into fiscal year 2016, we remain disciplined and committed to core earnings for the Company."

Statement of Operations Highlights

Fourth Quarter and Fiscal Year 2015 Results
The Company reported net loss of $126 thousand for the three months ended March 31, 2015, compared to a net loss of $769 thousand for the prior year period. The primary drivers of this change are recoveries in the loan loss provision and lower non-interest expenses, partially offset by lower non-interest income in the current period.



For the twelve months ended March 31, 2015, the Company reported net income of $364 thousand, compared to a net loss of $836 thousand for the prior year period. The change was driven by recoveries of loan losses and lower non-interest expenses, partially offset by lower net interest income and non-interest income in the current fiscal year.

Net Interest Income
Net interest income increased $21 thousand, or 0.4%, to $4.8 million for the three months ended March 31, 2015, compared to $4.7 million for the prior year period as lower funding costs offset lower interest income on loans. Net interest income decreased $912 thousand, or 4.7%, to $18.4 million for the twelve months ended March 31, 2015, compared to $19.3 million for the prior year period. This change was driven primarily by lower yields on loans.

Interest income remained relatively unchanged at $5.7 million for the three months ended March 31, 2015, decreasing $19 thousand, or 0.3%, from the prior year quarter. For the twelve months ended March 31, 2015, interest income decreased $921 thousand, or 4.0%, to $22.3 million compared to $23.2 million for the prior year period. Although the average balance of loans increased for both comparative periods, the average yield on loans decreased, driven by a higher concentration of one-to-four family loans and a lower mix of commercial real estate loans. Interest income on mortgage-backed securities decreased $235 thousand for the fiscal year following a $13.0 million, or 26.0%, decrease in the average balances of mortgage-backed securities from the prior year, as low interest rates fueled prepayments. The average yield on mortgage-backed securities increased 9 basis points from 2.07% to 2.16% for the twelve months ended March 31, 2015.

Driven by lower rates paid on certificates of deposit, the Bank's interest expense decreased $40 thousand, or 4.1%, to $946 thousand for the three months ended March 31, 2015, compared to $986 thousand for the prior year period. For the twelve months ended March 31, 2015, interest expense remained relatively unchanged at $3.9 million, decreasing $9 thousand, or 0.2%, from the prior year period. Increased interest expenses on deposits were partially offset by decreased interest expenses on borrowed funds, as the Bank grew deposits and reduced borrowings.

Provision for Loan Losses
The Company recorded a $365 thousand recovery of loan losses for the three months ended March 31, 2015, compared to a $300 thousand provision for loan losses for the prior year period. In addition, the Company recognized net charge-offs of $1 million, compared to $1.5 million in the prior year quarter. For the twelve months ended March 31, 2015, the Company recorded a $3.0 million recovery of loan losses, compared to $426 thousand for the prior year period. Net recoveries of $255 thousand were recognized for the fiscal year, compared to net charge-offs of $3.3 million in the prior year period. Decreases in historic loan loss rates and recoveries of previously charged-off loans were the primary drivers of the improvement in both periods.

Non-interest Income
Non-interest income decreased $495 thousand, or 26.2%, to $1.4 million for the three months ended March 31, 2015, compared to $1.9 million for the prior year period. For the twelve months ended March 31, 2015, non-interest income decreased $1.2 million, or 18.2%, to $5.6 million compared to $6.8 million for the prior year period. Non-interest income in the prior year and quarter included gains on sales of loans and securities of $1.3 million and $552 thousand, respectively, as the Bank disposed of non-performing loans and repositioned its investment portfolio. Other non-interest income for the current fiscal year included a $323 thousand grant award from the Community Development Financial Institutions Fund of the U.S. Department of the Treasury.



Non-interest Expense
For the three months ended March 31, 2015, non-interest expense decreased $621 thousand, or 8.6%, to $6.6 million, compared to $7.2 million for the prior year quarter. For the twelve months ended March 31, 2015, non-interest expense decreased $659 thousand or 2.4% to $26.7 million, compared to $27.4 million for the prior year period. Two factors drove this decrease: federal deposit insurance premiums decreased after the Office of the Comptroller of the Currency lifted its regulatory orders on the Bank in November, and data processing costs decreased as the Bank upgraded its core technology platform. The data processing savings were slightly offset by higher consulting expenses, while the one-time cost associated with terminating the Company's pension plan in the prior year led to decreased compensation and benefits in the current year.

Income Taxes
Income tax expense was $31 thousand for the three months ended March 31, 2015, compared to $8 thousand for the prior year period. For the twelve months ended March 31, 2015, income tax expense was $166 thousand, compared to $102 thousand in the prior year period.

Financial Condition Highlights
At March 31, 2015, total assets increased $36.5 million, or 5.7%, to $676.4 million, compared to $639.8 million at March 31, 2014. This overall change was primarily driven by increases of $96.0 million in the loan portfolio, net of the allowance for loan losses, and $14.6 million in the investment portfolio, offset by a decrease of $70.4 million in cash and due from banks.

Total investment securities increased $14.6 million, or 14.8%, to $113.1 million at March 31, 2015, compared to $98.5 million at March 31, 2014 as the Bank redeployed excess cash by purchasing securities.

Net loans receivable increased $93.2 million, or 23.9%, to $483.2 million at March 31, 2015, compared to $390.0 million at March 31, 2014 following growth in business and mortgage loans from loan purchases and originations.

Loans held-for-sale ("HFS") decreased $2.4 million, or 48.6%, to $2.6 million at March 31, 2015, following transfer of a loan into other real estate owned during the first fiscal quarter.

Total liabilities increased $32.7 million, or 5.6%, to $621.4 million at March 31, 2015, compared to $588.7 million at March 31, 2014, due to increases in deposits of $18.4 million, and borrowings of $13.0 million to fund the growth in loans and securities.

Deposits increased $18.4 million, or 3.6%, to $527.8 million at March 31, 2015, compared to $509.4 million at March 31, 2014, following an increase in money market and interest-bearing checking accounts.

Advances from the Federal Home Loan Bank of New York and other borrowed money increased $13.0 million, or 18.5%, to $83.4 million at March 31, 2015, compared to $70.4 million at March 31, 2014. The Bank increased its borrowings to fund loan growth in the fourth quarter.

Total equity increased $3.8 million, or 7.4%, to $55.0 million at March 31, 2015, compared to $51.2 million at March 31, 2014. The increase was primarily due to a $3.7 million reduction in unrealized losses on investments and net income earned for the fiscal year.



Asset Quality
At March 31, 2015, non-performing assets totaled $15.3 million, or 2.3% of total assets, compared to $15.1 million or 2.3% of total assets at December 31, 2014 and $18.9 million or 3.0% of total assets at March 31, 2014. Non-performing assets at March 31, 2015 consisted of $4.8 million of loans 90 days or more past due and nonaccruing, $3.6 million of loans classified as a troubled debt restructuring, $4.3 million of other real estate owned, and $2.6 million of loans classified as HFS.

At March 31, 2015, the allowance for loan losses was $4.5 million and the ratio of the allowance for loan losses to non-performing loans was 53.3% compared to 57.6% at March 31, 2014. The ratio of the allowance for loan losses to total loans was 0.9% at March 31, 2015, down from 1.9% at March 31, 2014, as non-performing assets decreased 19.2% during the period.

About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver was founded in 1948 to serve African-American communities whose residents, businesses, and institutions had limited access to mainstream financial services. In light of its mission to promote economic development and revitalize underserved communities, Carver has been designated by the U.S. Department of the Treasury as a Community Development Financial Institution. Carver is the largest African- and Caribbean-American managed bank in the United States, with ten 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.

Contacts:
Michael Herley/Ruth Pachman
Kekst and Company
(212) 521-4897/4891

David L. Toner
Carver Bancorp, Inc.
First Senior Vice President and Chief Financial Officer
(718) 676-8936



CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
 
 
 
 
$ in thousands except per share data
March 31, 2015
 
March 31, 2014
ASSETS
 
 
 
Cash and cash equivalents:
 
 
 
Cash and due from banks
$
44,864

 
$
115,239

Money market investments
6,128

 
7,315

Total cash and cash equivalents
50,992

 
122,554

Restricted cash
6,354

 
6,354

Investment securities:
 
 
 
Available-for-sale, at fair value
101,185

 
89,461

Held-to-maturity, at amortized cost (fair value of $12,231 and $8,971 at March 31, 2015 and March 31, 2014, respectively)
11,922

 
9,029

Total investments
113,107

 
98,490

 
 
 
 
Loans held-for-sale (“HFS”)
2,576

 
5,011

 
 
 
 
Loans receivable:
 
 
 
Real estate mortgage loans
412,204

 
362,888

Commercial business loans
70,555

 
26,930

Consumer loans
434

 
138

Loans, net
483,193

 
389,956

Allowance for loan losses
(4,477
)
 
(7,233
)
Total loans receivable, net
478,716

 
382,723

Premises and equipment, net
7,075

 
7,830

Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost
3,519

 
3,101

Accrued interest receivable
2,781

 
2,557

Other assets
11,266

 
11,218

Total assets
$
676,386

 
$
639,838

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
LIABILITIES
 
 
 
Deposits:
 
 
 
Savings
$
95,009

 
$
98,051

Non-interest bearing checking
50,731

 
53,232

Interest-bearing checking
30,860

 
24,271

Money market
148,702

 
127,655

Certificates of deposit
202,459

 
206,157

Total deposits
527,761

 
509,366

Advances from the FHLB-NY and other borrowed money
83,403

 
70,403

Other liabilities
10,243

 
8,900

Total liabilities
621,407

 
588,669

 
 
 
 
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; 3,698,031 and 3,697,836 shares issued; 3,696,087 and 3,695,892 shares outstanding at March 31, 2015 and March 31, 2014, respectively)
61

 
61

Additional paid-in capital
55,468

 
56,114

Accumulated deficit
(44,206
)
 
(44,570
)
Treasury stock, at cost (1,944 shares at March 31, 2015 and March 31, 2014)
(417
)
 
(417
)
Accumulated other comprehensive loss
(1,045
)
 
(4,768
)
Total equity attributable to Carver Bancorp, Inc.
54,979

 
51,538

Non-controlling interest

—

 
(369
)
Total equity
54,979

 
51,169

Total liabilities and equity
$
676,386

 
$
639,838



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
2015
 
2014
 
2015
 
2014
Interest income:
 
 
 
 
 
 
 
Loans
$
5,135

 
$
5,145

 
$
19,974

 
$
20,734

Mortgage-backed securities
204

 
238

 
799

 
1,034

Investment securities
341

 
312

 
1,339

 
1,321

Money market investments
34

 
38

 
215

 
159

Total interest income
5,714

 
5,733

 
22,327

 
23,248

 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
Deposits
672

 
719

 
2,853

 
2,797

Advances and other borrowed money
274

 
267

 
1,089

 
1,154

Total interest expense
946

 
986

 
3,942

 
3,951

 
 
 
 
 
 
 
 
Net interest income
4,768

 
4,747

 
18,385

 
19,297

Provision for (recovery of) loan losses
(365
)
 
300

 
(3,010
)
 
(426
)
Net interest income after provision for loan losses
5,133

 
4,447

 
21,395

 
19,723

 
 
 
 
 
 
 
 
Non-interest income:
 
 
 
 
 
 
 
Depository fees and charges
888

 
810

 
3,595

 
3,452

Loan fees and service charges
213

 
234

 
708

 
970

Gain on sale of securities, net
—

 
45

 
8

 
552

Gain (loss) on sale of loans, net
—

 
552

 
(2
)
 
1,319

Gain (loss) on real estate owned, net
(40
)
 
24

 
5

 
(257
)
Lower of cost or market adjustment on loans held-for-sale
(30
)
 
—

 
(28
)
 
(231
)
Other
363

 
224

 
1,282

 
1,001

Total non-interest income
1,394

 
1,889

 
5,568

 
6,806

 
 
 
 
 
 
 
 
Non-interest expense:
 
 
 
 
 
 
 
Employee compensation and benefits
2,804

 
2,755

 
11,588

 
11,802

Net occupancy expense
1,076

 
1,405

 
3,839

 
4,039

Equipment, net
244

 
300

 
900

 
983

Data processing
335

 
247

 
733

 
1,072

Consulting fees
185

 
176

 
952

 
506

Federal deposit insurance premiums
60

 
307

 
603

 
1,236

Other
1,918

 
2,053

 
8,099

 
7,735

Total non-interest expense
6,622

 
7,243

 
26,714

 
27,373

 
 
 
 
 
 
 
 
Income (loss) before income taxes
(95
)
 
(907
)
 
249

 
(844
)
Income tax expense
31

 
8

 
166

 
102

Consolidated net income (loss)
(126
)
 
(915
)
 
83

 
(946
)
Less: Net loss attributable to non-controlling interest
—

 
(146
)
 
(281
)
 
(110
)
Net income (loss) attributable to Carver Bancorp, Inc.
$
(126
)
 
$
(769
)
 
$
364

 
$
(836
)
 
 
 
 
 
 
 
 
Earnings (loss) per common share:
 
 
 
 
 
 
 
Basic
$
(0.03
)
 
$
(0.21
)
 
$
0.10

 
$
(0.23
)
Diluted
$
(0.03
)
 
$
(0.21
)
 
$
0.10

 
$
(0.23
)






CARVER BANCORP, INC. AND SUBSIDIARIES
Non Performing Asset Table
 
 
 
 
 
 
 
 
 
 
$ in thousands
March
2015
 
December 2014
 
September 2014
 
June 2014
 
March 2014
Loans accounted for on a nonaccrual basis (1):
 
 
 
 
 
 
 
 
 
Gross loans receivable:
 
 
 
 
 
 
 
 
 
One-to-four family
$
3,664

 
$
3,089

 
$
2,636

 
$
2,651

 
$
2,301

Multifamily
1,053

 
1,053

 
1,054

 
671

 
2,240

Commercial real estate
2,817

 
2,850

 
2,991

 
3,979

 
7,024

Business
861

 
1,550

 
1,395

 
818

 
993

Consumer
—

 
7

 
10

 
5

 
1

Total non-performing loans
8,395

 
8,549

 
8,086

 
8,124

 
12,559

 
 
 
 
 
 
 
 
 
 
Other non-performing assets (2):
 
 
 
 
 
 
 
 
 
Real estate owned
4,341

 
3,934

 
4,122

 
4,124

 
1,369

Loans held-for-sale
2,576

 
2,606

 
2,606

 
2,611

 
5,011

Total other non-performing assets
6,917

 
6,540

 
6,728

 
6,735

 
6,380

Total non-performing assets (3):
$
15,312

 
$
15,089

 
$
14,814

 
$
14,859

 
$
18,939

 
 
 
 
 
 
 
 
 
 
Non-performing loans to total loans
1.74
%
 
1.96
%
 
1.97
%
 
2.08
%
 
3.22
%
Non-performing assets to total assets
2.26
%
 
2.34
%
 
2.30
%
 
2.31
%
 
2.96
%
 
 
 
 
 
 
 
 
 
 
(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, 2015, there were $4.6 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,
 
2015
 
2014
 
Average
 
 
 
Average
 
Average
 
 
 
Average
$ in thousands
Balance
 
Interest
 
Yield/Cost
 
Balance
 
Interest
 
Yield/Cost
Interest-Earning Assets:
 
 
 
 
 
 
 
 
 
 
 
Loans (1)
$
444,439

 
$
5,136

 
4.62
%
 
$
402,063

 
$
5,145

 
5.12
%
Mortgage-backed securities
39,627

 
204

 
2.06
%
 
41,110

 
238

 
2.32
%
Investment securities
55,281

 
261

 
1.89
%
 
51,984

 
240

 
1.85
%
Restricted cash deposit
6,354

 
—

 
0.03
%
 
6,464

 
—

 
0.03
%
Equity securities (2)
2,286

 
21

 
3.73
%
 
2,114

 
19

 
3.65
%
Other investments and federal funds sold
56,477

 
92

 
0.66
%
 
84,025

 
91

 
0.44
%
Total interest-earning assets
604,464

 
5,714

 
3.78
%
 
587,760

 
5,733

 
3.90
%
Non-interest-earning assets
25,831

 

 
 
 
14,321

 
 
 
 
Total assets
$
630,295

 
 
 
 
 
$
602,081

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-Bearing Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking
$
30,010

 
$
12

 
0.16
%
 
$
24,114

 
$
9

 
0.15
%
Savings and clubs
93,733

 
62

 
0.27
%
 
96,183

 
63

 
0.27
%
Money market
145,591

 
176

 
0.49
%
 
119,908

 
137

 
0.46
%
Certificates of deposit
190,247

 
415

 
0.88
%
 
199,818

 
503

 
1.02
%
Mortgagors deposits
1,892

 
7

 
1.50
%
 
1,779

 
7

 
1.60
%
Total deposits
461,473

 
672

 
0.59
%
 
441,802

 
719

 
0.66
%
Borrowed money
56,181

 
274

 
1.98
%
 
44,859

 
267

 
2.41
%
Total interest-bearing liabilities
517,654

 
946

 
0.74
%
 
486,661

 
986

 
0.82
%
Non-interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Demand
51,134

 
 
 
 
 
54,340

 
 
 
 
Other liabilities
7,446

 
 
 
 
 
8,467

 
 
 
 
Total liabilities
576,234

 
 
 
 
 
549,468

 
 
 
 
Non-controlling interest
(642
)
 
 
 
 
 
(225
)
 
 
 
 
Stockholders' equity
54,703

 
 
 
 
 
52,838

 
 
 
 
Total liabilities and equity
$
630,295

 
 
 
 
 
$
602,081

 
 
 
 
Net interest income
 
 
$
4,768

 
 
 
 
 
$
4,747

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average interest rate spread
 
 
 
 
3.04
%
 
 
 
 
 
3.08
%
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
 
 
 
 
3.16
%
 
 
 
 
 
3.23
%
 
 
 
 
 
 
 
 
 
 
 
 
(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,
 
2015
 
2014
 
Average
 
 
 
Average
 
Average
 
 
 
Average
$ in thousands
Balance
 
Interest
 
Yield/Cost
 
Balance
 
Interest
 
Yield/Cost
Interest-Earning Assets:
 
 
 
 
 
 
 
 
 
 
 
Loans (1)
$
412,357

 
$
19,974

 
4.84
%
 
$
385,259

 
$
20,734

 
5.38
%
Mortgage-backed securities
36,947

 
799

 
2.16
%
 
49,921

 
1,034

 
2.07
%
Investment securities
53,915

 
1,022

 
1.90
%
 
55,643

 
1,016

 
1.83
%
Restricted cash deposit
6,354

 
1

 
0.03
%
 
7,209

 
1

 
0.03
%
Equity securities (2)
1,936

 
81

 
4.18
%
 
2,280

 
88

 
3.86
%
Other investments and federal funds sold
94,310

 
450

 
0.48
%
 
75,945

 
375

 
0.49
%
Total interest-earning assets
605,819

 
22,327

 
3.68
%
 
576,257

 
23,248

 
4.03
%
Non-interest-earning assets
19,721

 
 
 
 
 
23,573

 
 
 
 
Total assets
$
625,540

 
 
 
 
 
$
599,830

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-Bearing Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking
$
27,549

 
$
45

 
0.16
%
 
$
25,184

 
$
40

 
0.16
%
Savings and clubs
95,731

 
255

 
0.27
%
 
96,424

 
256

 
0.27
%
Money market
142,252

 
692

 
0.49
%
 
116,535

 
536

 
0.46
%
Certificates of deposit
197,447

 
1,831

 
0.93
%
 
191,854

 
1,931

 
1.01
%
Mortgagors deposits
1,956

 
30

 
1.53
%
 
1,955

 
34

 
1.74
%
Total deposits
464,935

 
2,853

 
0.61
%
 
431,952

 
2,797

 
0.65
%
Borrowed money
46,702

 
1,089

 
2.33
%
 
51,264

 
1,154

 
2.25
%
Total interest-bearing liabilities
511,637

 
3,942

 
0.77
%
 
483,216

 
3,951

 
0.82
%
Non-interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Demand
52,866

 
 
 
 
 
55,405

 
 
 
 
Other liabilities
7,184

 
 
 
 
 
7,983

 
 
 
 
Total liabilities
571,687

 
 
 
 
 
546,604

 
 
 
 
Non-controlling interest
(466
)
 
 
 
 
 
(180
)
 
 
 
 
Stockholders' equity
54,319

 
 
 
 
 
53,406

 
 
 
 
Total liabilities and equity
$
625,540

 
 
 
 
 
$
599,830

 
 
 
 
Net interest income
 
 
$
18,385

 
 
 
 
 
$
19,297

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average interest rate spread
 
 
 
 
2.91
%
 
 
 
 
 
3.21
%
 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
 
 
 
 
3.03
%
 
 
 
 
 
3.35
%
 
 
 
 
 
 
 
 
 
 
 
 
(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:
 
2015
 
2014
 
2015
 
2014
 
Return on average assets (1)
 
(0.08
)%
 
(0.51
)%
 
0.06
%
 
(0.14
)%
 
Return on average stockholders' equity (2) (10)
 
(0.92
)%
 
(5.82
)%
 
0.67
%
 
(1.57
)%
 
Return on average stockholders' equity, excluding AOCI (2) (10)
 
(0.89
)%
 
(5.50
)%
 
0.64
%
 
(1.49
)%
 
Net interest margin (3)
 
3.16
 %
 
3.23
 %
 
3.03
%
 
3.35
 %
 
Interest rate spread (4)
 
3.04
 %
 
3.08
 %
 
2.91
%
 
3.22
 %
 
Efficiency ratio (5) (10)
 
107.47
 %
 
109.15
 %
 
111.53
%
 
104.87
 %
 
Operating expenses to average assets (6)
 
4.20
 %
 
4.81
 %
 
4.27
%
 
4.56
 %
 
Average stockholders' equity to average assets (7) (10)
 
8.68
 %
 
8.78
 %
 
8.68
%
 
8.90
 %
 
Average stockholders' equity, excluding AOCI, to average assets (7) (10)
 
8.94
 %
 
9.28
 %
 
9.09
%
 
9.33
 %
 
Average interest-earning assets to average interest-bearing liabilities
 
1.17

x
1.21

x
1.18

x
1.19

x
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share
 
$
(0.03
)
 
$
(0.21
)
 
$
0.10

 
$
(0.23
)
 
Average shares outstanding
 
3,696,420

 
3,696,225

 
3,696,539

 
3,696,149

 
 
 
 
 
 
 
 
 
 
 
 
 
March 31
 
 
 
 
 
2015
 
2014
 
 
 
 
 
Capital Ratios:
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio (8)
 
10.85
 %
 
10.38
 %
 
 
 
 
 
Common Equity Tier 1 capital ratio (8)
 
15.10
 %
 
N/A
 
 
 
 
 
Tier 1 risk-based capital ratio (8)
 
15.10
 %
 
17.55
 %
 
 
 
 
 
Total risk-based capital ratio (8)
 
16.78
 %
 
20.12
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
 
 
 
 
Non-performing assets to total assets (9)
 
2.26
 %
 
2.96
 %
 
 
 
 
 
Non-performing loans to total loans receivable (9)
 
1.74
 %
 
3.22
 %
 
 
 
 
 
Allowance for loan losses to total loans receivable
 
0.93
 %
 
1.85
 %
 
 
 
 
 
Allowance for loan losses to non-performing loans
 
53.33
 %
 
57.59
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Net income (loss), annualized, divided by average total assets.
(2) Net income (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 and non-interest income.
(6) Non-interest expenses, annualized, divided by average total assets.
(7) Average stockholders' equity divided by average assets for the period ended.
(8) These ratios reflect consolidated bank only. March 31, 2015 ratios were calculated under the new capital requirements that became effective January 1, 2015.
(9) Non-performing assets consist of nonaccrual loans and real estate owned.
(10) See Non-GAAP Financial Measures disclosure for comparable GAAP measures.

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, return on average stockholders' equity excluding average accumulated other comprehensive income (loss) ("AOCI"), and average stockholders' equity excluding AOCI to average assets. Management believes these non-GAAP financial measures provide information that is 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.

Return on equity measures how efficiently we generate profits from the resources provided by our net assets. Return on average stockholders' equity is calculated by dividing annualized net income (loss) by average stockholders' equity, excluding AOCI. Management believes that this performance measure explains the results of the Company's ongoing businesses in a manner that allows for a better understanding of the underlying trends in the Company's current businesses. For purposes of the Company's presentation, AOCI includes the changes in the market or fair value of its investment portfolio and former pension plan. These fluctuations have been excluded due to the unpredictable nature of this item and is not necessarily indicative of current operating or future performance.
 
 
Three Months Ended
March 31,
 
Twelve Months Ended
March 31,
$ in thousands
 
2015
 
2014
 
2015
 
2014
Average Stockholders' Equity
 
 
 
 
 
 
 
 
Average Stockholders' Equity
 
$
54,703

 
$
52,838

 
$
54,319

 
$
53,406

Average AOCI
 
(1,646
)
 
(3,057
)
 
(2,525
)
 
(2,545
)
Average Stockholders' Equity, excluding AOCI
 
$
56,349

 
$
55,895

 
$
56,844

 
$
55,951

 
 
 
 
 
 
 
 
 
Return on Average Stockholders' Equity
 
(0.92
)%
 
(5.82
)%
 
0.67
%
 
(1.57
)%
Return on Average Stockholders' Equity, excluding AOCI
 
(0.89
)%
 
(5.50
)%
 
0.64
%
 
(1.49
)%
 
 
 
 
 
 
 
 
 
Average Stockholders' Equity to Average Assets
 
8.68
 %
 
8.78
 %
 
8.68
%
 
8.90
 %
Average Stockholders' Equity, excluding AOCI, to Average Assets
 
8.94
 %
 
9.28
 %
 
9.09
%
 
9.33
 %
 
 
 
 
 
 
 
 
 




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