Exhibit 99.1
|
Contact: David Lilly / Joseph Kuo Kekst and Company (212) 521-4800 | Roy Swan Carver Bancorp, Inc. (212) 360-8820 |
CARVER BANCORP, INC. ANNOUNCES FISCAL YEAR 2007 RESULTS
Fourth Quarter Diluted EPS up 22% over Prior Year Period
Reports EPS of $0.50 and $1.01 for the Fourth Quarter and Fiscal Year
Dividend of $0.09 Declared
New York, New York, May 31, 2007- Carver Bancorp, Inc. (the “Company” or “Carver”) (AMEX: CNY), the holding company for Carver Federal Savings Bank (the “Bank”), today announced its results of operations for its fourth quarter and fiscal year ended March 31, 2007 (“fiscal 2007”).The Company reported net income of $1.3 million and diluted earnings per share of $0.50 for the fourth quarter of fiscal 2007 compared to net income of $1.0 million and diluted earnings per share of $0.41, for the same period last year. For fiscal 2007, net income was $2.6 million and diluted earnings per share was $1.01 compared to $3.8 million and $1.47, respectively, for the prior fiscal year. The fiscal 2007 results include the previously reported second quarter 2007 one-time merger related charges in connection with completion of the Bank’s acquisition of Community Capital Bank (“CCB”) in the amount of $1.3 million (approximately $779,000 after taxes) and one-time charges related to its balance sheet repositioning in the amount of $1.3 million (approximately $835,000 after taxes). Excluding the one-time charges, on a non-GAAP basis the Company’s adjusted net income for fiscal 2007 would have been approximately $4.2 million, or $1.63 per diluted share for the fiscal year.
Deborah C. Wright, Chairman and CEO of Carver, noted: “Fiscal 2007 was marked by significant accomplishments at Carver including the successful acquisition of CCB and the receipt of a $59 million New Markets Tax Credit (“NMTC”) award. Because of the hard work of many dedicated employees, we completed the systems integration of CCB on schedule during the fourth quarter. In addition, we are very excited about our retail and lending operations which were recently bolstered by opportunistic recruitment of additional seasoned professionals seeking a growth platform in urban markets. These additions should accelerate our ability to capitalize on our new commercial banking platform and our recently announced alliance with Merrill Lynch. Our focus on active asset-liability management, including the balance sheet repositioning implemented during the second quarter, contributed to an increase in Carver’s net interest margin of 33 basis points to 3.56% for the fourth quarter of fiscal 2007, compared to 3.23% for the same period last year.
Ms. Wright concluded: “Recognizing the solid momentum we have achieved this year as well as our future prospects, the Company’s Board of Directors on May 30, 2007, declared a quarterly dividend of $0.09 per share for the fourth quarter, payable on June 27, 2007, to shareholders of record at the close of business on June 13, 2007.”
Income Statement Highlights
Fourth Quarter Fiscal 2007 Results
Net income for the quarter increased $245,000, or 23.5%, to $1.3 million compared to $1.0 million for the same period last year. The rise in quarterly results was primarily due to an increase in net interest income before provision for loan losses of $1.2 million and a reduction of tax expense of $1.1 million due to a tax benefit of $493,000, compared to a tax provision of $595,000 for the same period last year. This favorable change was partially offset by an increase in non-interest expense of $1.4 million, a decrease in non-interest income of $493,000 and a $156,000 provision for loan losses.Net interest income before provision for loan losses for the quarter increased $1.2 million, or 25.5%, to $6.1 million compared to $4.9 million for the same period last year. This result is primarily due to the Bank’s strategy to reduce lower yielding securities and replace them with higher yielding loans, and additional income from the CCB loan and investment portfolios acquired at the end of the second quarter. Interest income increased $2.8 million, or 32.2%, partially offset by an increase in interest expense of $1.5 million, or 40.8%, compared to the same period last year. This was due to increases in yields of 65 basis points and average balances in the loan portfolio of $132.8 million. Of the 65 basis point increase, the effect of purchase accounting associated with the acquisition of CCB contributed 12 basis points. Interest expense increased as a result of an increase in average balances in deposits of $117.0 million, primarily acquired from CCB.
The Company provided $156,000 in loan loss provisions during the fourth quarter of fiscal 2007, based on the Company’s assessment of its loan portfolio. In the fourth quarter of fiscal 2006, the Company did not make a provision for loan losses.
Non-interest income decreased $493,000, or 27.6%, to $1.3 million compared to $1.8 million for the same period last year. Non-interest income declined primarily as a result of a decrease of $343,000 in loan fees and service charges and a decrease of $198,000 in the gain on sale of loans. The decline in loan fees and service charges resulted primarily from lower prepayment penalties collected this quarter as compared to the same period a year ago, due in part to the slower refinancing market as the yield curve remained flat to slightly inverted. The decrease in the gain on sale of loans resulted from a gain on the bulk sale of $10.7 million of residential one-to-four family mortgage loans during the fourth quarter of fiscal 2006.
Non-interest expense increased $1.4 million or 28.6%, to $6.5 million compared to $5.0 million for the same period last year. Employee compensation and benefits and other non-interest expense accounted for $590,000 and $621,000 of the increase, respectively. The increase in employee compensation and benefits expense resulted primarily from the larger employee base following the acquisition of CCB. Other non-interest expenses increased primarily due to costs associated with the acquisition of CCB and higher professional fees.
The Company recorded income before taxes of $793,000 compared to $1.6 million for the same period last year. The resultant income tax expense was $244,000 compared to $595,000 for the same period last year. However, during the quarter the Bank recorded $737,000 in tax credits under the terms of the NMTC award. The net effect of this tax adjustment resulted in a net tax benefit of $493,000 for the fourth quarter of fiscal 2007.
Fiscal 2007 Results
For fiscal 2007, the Company recorded net income of $2.6 million compared to $3.8 million for the prior fiscal year. The $1.2 million decrease is primarily due to an increase of $4.2 million in non-interest expense and a decrease of $2.5 million in non-interest income, partially offset by an increase of $3.3 million in net interest income after provision for loan losses, and a decrease of $2.2 million in the Company’s income tax provision compared to the prior fiscal year.
Net interest income after provision for loan losses increased by $3.3 million, or 17.7%, to $22.2 million, compared to $18.9 million for the prior fiscal year. Interest income increased $9.4 million, or 28.9%, to $41.7 million compared to $32.4 million for the prior fiscal year primarily as a result of increased real estate mortgage loan balances, higher yields and the addition of the CCB investment and loan portfolios. The rise in interest income was partially offset by additional interest expense of $5.7 million, or 42.5%, to $19.2 million compared to $13.5 million for the prior fiscal year, primarily due to increased costs of deposits including the addition of CCB deposits. The Company also provided $276,000 in provisions for loan losses compared to the prior fiscal year in which the Company did not make a provision for loan losses.
Non-interest income decreased $2.5 million, or 46.3%, to $2.9 million, compared to $5.3 million for the prior fiscal year. Loan fees and service charges declined $1.0 million, or 44.5%, to $1.2 million, primarily as a result of decreased mortgage prepayment penalties associated with the decline in mortgage refinancing activity. As previously reported in its earnings release for fourth quarter 2006 and fiscal 2006, the Bank’s non-interest income in fiscal 2006 was higher than anticipated due to increased prepayment penalty income resulting from greater than anticipated mortgage refinance activity, increased late charge fee income resulting from a large delinquent loan refinancing and increased gain on sale of mortgage loans related to a bulk sale of $10.7 million of residential one-to-four family mortgage loans, none of which was expected to continue in fiscal year 2007. In addition, the Bank recognized one-time charges of $1.3 million in the second quarter of this fiscal year as part of the Bank’s balance sheet repositioning, resulting in a $702,000 write-down taken on held-for-sale loans and a $624,000 loss on the sale of certain investment securities.
Non-interest expense increased $4.2 million, or 22.0%, to $23.3 million compared to $19.1 million for the prior fiscal year. The increase in non-interest expense was primarily due to the inclusion of CCB operations and costs associated with the acquisition of CCB, including an increase in employee compensation and benefits of $1.0 million and $1.3 million in one-time merger-related restructuring charges. Other expenses increased primarily due to costs associated with the acquisition of CCB and higher professional fees.
For fiscal 2007, the Company recorded income before taxes of $1.8 million compared to $5.1 million for the prior fiscal year. The resultant income tax expense was $652,000 compared to $1.3 million for the prior fiscal year. However, during the year the Bank recorded $1.5 million in tax credits under the terms of the NMTC award. The net effect of this tax adjustment resulted in a net tax benefit of $823,000 for fiscal year 2007.
Financial Condition Highlights
At March 31, 2007, total assets increased by $74.6 million, or 11.3%, to $735.6 million compared to $661.0 million at March 31, 2006. The asset growth primarily reflects $165.4 million in total assets acquired from CCB, partially offset by sales of certain investment securities and loans. The Bank’s total loan portfolio increased by $111.7 million primarily as a result of the $98.8 million portfolio acquired from CCB and $170.6 million in loan originations and purchases, offset by loan repayments and loan sales of $153.2 million, a write-down of held-for-sale loans of $702,000 and a net change in mortgage loan premiums and discounts resulting in a $3.8 million decrease to the loan portfolio. The increase in total assets was partially offset by a decrease of $41.2 million in total securities, primarily as a result of a $47.1 million sale of certain investment securities as part of the Bank’s balance sheet repositioning.
At March 31, 2007, total liabilities increased by $71.6 million, or 11.7%, to $683.9 million from $612.3 million at March 31, 2006. The increase in liabilities results primarily from the acquisition of $159.3 million in liabilities from CCB partially offset by a $33.1 million net repayment of borrowings. The Bank’s deposits increased $106.5 million primarily as a result of the acquisition of $144.1 million in deposits from CCB. Excluding deposits acquired from CCB, the Bank’s deposits declined by $37.6 million as a result of reduced certificates of deposit, interest-bearing checking, savings and money market balances. The reduction in certificates of deposit primarily results from the Bank’s decision not to renew approximately $27.0 million in relatively high cost maturing deposits. Borrowings declined $33.1 million as the Bank had net repayments of $34.7 million in relatively higher cost borrowings, partially offset by an increase of $12.5 million in borrowings acquired with CCB of which $11.0 million matured and were repaid.
At March 31, 2007, total stockholders’ equity increased $2.9 million, or 6.0%, to $51.6 million compared to $48.7 million at March 31, 2006. The increase in total stockholders’ equity was primarily attributable to fiscal year 2007 net income of $2.6 million. Also contributing to the increase in total stockholders’ equity was the increase of $1.1 million in accumulated other comprehensive income related to mark-to-market of the Bank’s available-for-sale securities and employee pension accounting of $765,000 and $360,000, respectively. The increase on the available-for-sale securities resulted from the sale of securities as part of the balance sheet repositioning. Partially offsetting these increases was the payment of quarterly dividends totaling $879,000.
Common stock repurchases for the three and twelve months ended March 31, 2007, totaled 7,300 shares at an average cost of $16.32 per share and 19,300 shares at an average cost of $16.62 per share, respectively.
Asset Quality
At March 31, 2007, non-performing assets totaled $4.5 million, or 0.62% of total assets, compared to $2.8 million, or 0.42% of total assets, at March 31, 2006. This increase is due to a group of loans to one borrower totaling $3.8 million, offset by a reduction in other non performing loans that were paid down. Non-performing assets consist of loans secured by real estate. Management has reviewed the value of the underlying real estate and believes it adequate to secure these loans. At March 31, 2007, the allowance for loan losses was $5.4 million compared to $4.0 million at March 31, 2006. This change reflects the additional allowance for loan losses of $1.2 million resulting from the CCB acquisition and an additional provision of $276,000 during the fiscal year. At March 31, 2007, the ratio of the allowance for loan losses to non-performing loans was 119.9% compared to 147.1% at March 31, 2006. At March 31, 2007, the ratio of the allowance for loan losses to total loans receivable was 0.89% compared to 0.81% at March 31, 2006.
Other Matters
During March 2007, the Company filed Form 10-K/A for the fiscal year ended March 31, 2006, to restate the Consolidated Statements of Cash Flows for Fiscal Years 2006, 2005 and 2004, and the Company’s quarterly report on Form 10-Q for the quarter ended December 31, 2006, contained a restated Consolidated Statements of Cash Flows for the quarter ended June 30, 2006. The Company previously reported its intent to make these restatements in its earnings release for fiscal third quarter 2007. The restatements did not affect the Company’s Consolidated Statements of Financial Condition, Consolidated Statements of Operations and Consolidated Statements of Changes in Stockholders Equity for the affected periods. Accordingly, the Company’s historical net income, earnings per share, total assets and regulatory capital remain unchanged.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, operates ten full-service branches in the New York City boroughs of Brooklyn, Queens and Manhattan. 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.
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CARVER BANCORP, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION |
(In thousands, except share data) |
(Unaudited) |
| | | March 31, | | March 31, | |
| | | 2007 | | 2006 | |
| | | (Unaudited) | | | |
ASSETS | | | | | |
| Cash and cash equivalents: | | | | | |
| Cash and due from banks | | $ | 14,619 | | $ | 13,604 | |
| Federal funds sold | | | 1,300 | | | 8,700 | |
| Interest earning deposits | | | 1,431 | | | 600 | |
| Total cash and cash equivalents | | | 17,350 | | | 22,904 | |
| Securities: | | | | | | | |
| Available-for-sale, at fair value (including pledged as collateral | | | | | | | |
of $34,649 and $79,211 at March 31, 2007 and 2006, respectively) | | | 47,980 | | | 81,882 | |
| Held-to-maturity, at amortized cost (including pledged as collateral | | | | | | | |
| of $18,581 and $26,039 at March 31, 2007 and 2006, respectively; | | | | | | | |
| fair value of $18,672 and $25,880 at March 31,2007 and 2006, respectively) | | | 19,137 | | | 26,404 | |
| Total securities | | | 67,117 | | | 108,286 | |
| | | | | | | | |
| Loans held-for-sale | | | 23,226 | | | -- | |
| | | | | | | | |
| Loans receivable: | | | | | | | |
| Real estate mortgage loans | | | 533,667 | | | 495,994 | |
| Consumer and commercial business loans | | | 52,293 | | | 1,453 | |
| Allowance for loan losses | | | (5,409 | ) | | (4,015 | ) |
| Total loans receivable, net | | | 580,551 | | | 493,432 | |
| | | | | | | | |
| Office properties and equipment, net | | | 14,626 | | | 13,194 | |
| Federal Home Loan Bank of New York stock, at cost | | | 3,239 | | | 4,627 | |
| Bank owned life insurance | | | 8,795 | | | 8,479 | |
| Accrued interest receivable | | | 4,335 | | | 2,970 | |
| Goodwill | | | 5,716 | | | -- | |
| Core deposit intangibles, net | | | 684 | | | -- | |
| Other assets | | | 9,926 | | | 7,101 | |
| Total assets | | $ | 735,565 | | $ | 660,993 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | |
| Liabilities: | | | | | | | |
| Deposits | | $ | 611,138 | | $ | 504,638 | |
| Advances from the FHLB-NY and other borrowed money | | | 60,690 | | | 93,792 | |
| Other liabilities | | | 12,110 | | | 13,866 | |
| Total liabilities | | | 683,938 | | | 612,296 | |
| Stockholders' equity: | | | | | | | |
| Common stock (par value $0.01 per share: 10,000,000 shares; | | | | | | | |
| authorized; 2,524,691 shares issued; 2,507,985 and 2,506,822 | | | | | | | |
| outstanding at March 31, 2007 and 2006, respectively) | | | 25 | | | 25 | |
| Additional paid-in capital | | | 23,996 | | | 23,935 | |
| Retained earnings | | | 27,436 | | | 25,736 | |
| Unamortized awards of common stock under ESOP and MRP | | | (4 | ) | | (22 | ) |
| Treasury stock, at cost (16,706 and 17,869 shares at | | | | | | | |
| March 31, 2007 and 2006, respectively) | | | (277 | ) | | (303 | ) |
| Accumulated other comprehensive income (loss) | | | 451 | | | (674 | ) |
| Total stockholders' equity | | | 51,627 | | | 48,697 | |
| Total liabilities and stockholders' equity | | $ | 735,565 | | $ | 660,993 | |
CARVER BANCORP, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
(In thousands, except share data) |
(Unaudited) |
| | | Three Months Ended March 31, | | Twelve Months Ended March 31, | |
| | | | | | | | | | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | | |
| Interest Income: | | | | | | | | | |
| Loans | | $ | 10,385 | | $ | 7,360 | | $ | 37,277 | | $ | 26,563 | |
| Mortgage-backed securities | | | 547 | | | 1,055 | | | 2,877 | | | 4,439 | |
| Investment securities | | | 500 | | | 186 | | | 1,325 | | | 971 | |
| Federal funds sold | | | 38 | | | 75 | | | 261 | | | 412 | |
| Total interest income | | | 11,470 | | | 8,676 | | | 41,740 | | | 32,385 | |
| | | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | |
| Deposits | | | 4,568 | | | 2,678 | | | 15,227 | | | 8,921 | |
| Advances and other borrowed money | | | 769 | | | 1,113 | | | 4,007 | | | 4,572 | |
| Total interest expense | | | 5,337 | | | 3,791 | | | 19,234 | | | 13,493 | |
| | | | | | | | | | | | | | |
| Net interest income before provision for loan losses | | | 6,133 | | | 4,885 | | | 22,506 | | | 18,892 | |
| | | | | | | | | | | | | | |
| Provision for loan losses | | | 156 | | | -- | | | 276 | | | -- | |
| Net interest income after provision for loan losses | | | 5,977 | | | 4,885 | | | 22,230 | | | 18,892 | |
| | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | |
| Depository fees and charges | | | 585 | | | 577 | | | 2,476 | | | 2,458 | |
| Loan fees and service charges | | | 542 | | | 885 | | | 1,238 | | | 2,231 | |
| Write-down of loans held for sale | | | -- | | | -- | | | (702 | ) | | -- | |
| Loss on sale of securities | | | -- | | | -- | | | (624 | ) | | -- | |
| Gain on sale of loans | | | 51 | | | 249 | | | 192 | | | 351 | |
| Loss on sale of real estate owned | | | -- | | | -- | | | (108 | ) | | -- | |
| Other | | | 117 | | | 77 | | | 397 | | | 301 | |
| Total non-interest income | | | 1,295 | | | 1,788 | | | 2,869 | | | 5,341 | |
| | | | | | | | | | | | | | |
| Non-interest expense: | | | | | | | | | | | | | |
| Employee compensation and benefits | | | 3,043 | | | 2,453 | | | 10,470 | | | 9,512 | |
| Net occupancy expense | | | 759 | | | 614 | | | 2,667 | | | 2,284 | |
| Equipment, net | | | 550 | | | 464 | | | 2,071 | | | 1,939 | |
| Merger related expenses | | | -- | | | -- | | | 1,258 | | | -- | |
| Other | | | 2,127 | | | 1,506 | | | 6,873 | | | 5,399 | |
| Total non-interest expense | | | 6,479 | | | 5,037 | | | 23,339 | | | 19,134 | |
| | | | | | | | | | | | | | |
| Income before income taxes | | | 793 | | | 1,636 | | | 1,760 | | | 5,099 | |
| Income tax (benefit) provision | | | (493 | ) | | 595 | | | (823 | ) | | 1,329 | |
| Net income | | $ | 1,286 | | $ | 1,041 | | $ | 2,583 | | $ | 3,770 | |
| | | | | | | | | | | | | | |
| Earnings per common share: | | | | | | | | | | | | | |
| Basic | | $ | 0.51 | | $ | 0.42 | | $ | 1.03 | | $ | 1.50 | |
| Diluted | | $ | 0.50 | | $ | 0.41 | | $ | 1.01 | | $ | 1.47 | |
CARVER BANCORP, INC. AND SUBSIDIARIES |
CONSOLIDATED AVERAGE BALANCES |
(In thousands) |
(Unaudited) |
| | | Three Months Ended March 31, 2007 | | Three Months Ended March 31, 2006 | |
| | | Average | | | | Average | | Average | | | | Average | |
Interest Earning Assets: | | Balance | | Interest | | Yield/Cost | | Balance | | Interest | | Yield/Cost | |
| | | | | | | | | | | | | | |
Loans(1) | | | | | | | | | | | | | |
| Mortgage Loans | | $ | 422,270 | | $ | 6,446 | | | 6.11 | % | $ | 393,780 | | $ | 5,576 | | | 5.66 | % |
| Construction | | | 133,470 | | | 2,726 | | | 8.28 | % | | 82,126 | | | 1,759 | | | 8.69 | % |
| Subtotal Mortgage loans | | | 555,740 | | | 9,172 | | | 6.63 | % | | 475,906 | | | 7,335 | | | 6.19 | % |
| Consumer | | | 847 | | | 24 | | | 11.49 | % | | 1,013 | | | 18 | | | 7.30 | % |
| Small Business | | | 53,530 | | | 1,189 | | | 9.01 | % | | 427 | | | 6 | | | 5.86 | % |
| Total Loans | | | 610,117 | | | 10,385 | | | 6.84 | % | | 477,346 | | | 7,360 | | | 6.19 | % |
| | | | | | | | | | | | | | | | | | | | |
| Available for sale & investment securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | | | | | | | | | | | | | | | | | |
| MBS securities | | | 22,413 | | | 276 | | | 4.93 | % | | 74,695 | | | 683 | | | 3.66 | % |
| Agency securities | | | 28,527 | | | 407 | | | 5.79 | % | | 13,208 | | | 120 | | | 3.67 | % |
| Other | | | 699 | | | 21 | | | 12.19 | % | | -- | | | -- | | | -- | |
| Subtotal available for sale | | | 51,639 | | | 704 | | | 5.50 | % | | 87,903 | | | 803 | | | 3.66 | % |
| Held-for-investment: | | | | | | | | | | | | | | | | | | | |
| MBS securities | | | 19,281 | | | 271 | | | 5.62 | % | | 26,595 | | | 372 | | | 5.60 | % |
| Other | | | 217 | | | -- | | | 0.00 | % | | 301 | | | 6 | | | 7.42 | % |
| Subtotal held-for-investment | | | 19,498 | | | 271 | | | 5.56 | % | | 26,896 | | | 378 | | | 5.62 | % |
| Total available for sale & investment securities | | | 71,137 | | | 975 | | | 5.52 | % | | 114,799 | | | 1,181 | | | 4.12 | % |
| | | | | | | | | | | | | | | | | | | | |
| FHLB | | | 3,138 | | | 67 | | | 8.54 | % | | 5,477 | | | 61 | | | 4.42 | % |
| Fed funds sold | | | 2,989 | | | 38 | | | 5.16 | % | | 6,916 | | | 75 | | | 4.40 | % |
| Other | | | 1,581 | | | 5 | | | 1.28 | % | | -- | | | -- | | | -- | |
| Total interest earning assets | | $ | 688,962 | | $ | 11,470 | | | 6.69 | % | | 604,538 | | $ | 8,676 | | | 5.76 | % |
| Non-interest earning assets | | | 48,373 | | | | | | | | | 34,580 | | | | | | | |
| Total assets | | $ | 737,335 | | | | | | | | $ | 639,118 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | |
| Checking | | $ | 26,600 | | $ | 29 | | | 0.44 | % | $ | 24,898 | | | 19 | | | 0.30 | % |
| Savings and clubs | | | 136,315 | | | 250 | | | 0.74 | % | | 137,233 | | | 230 | | | 0.68 | % |
| Money market accounts | | | 49,461 | | | 349 | | | 2.86 | % | | 34,898 | | | 165 | | | 1.92 | % |
| Certificates of deposit | | | 356,068 | | | 3,932 | | | 4.48 | % | | 254,984 | | | 2,259 | | | 3.59 | % |
| Mortgagors deposits | | | 2,012 | | | 8 | | | 1.61 | % | | 1,494 | | | 5 | | | 1.39 | % |
| Total deposits | | | 570,456 | | | 4,568 | | | 3.25 | % | | 453,505 | | | 2,678 | | | 2.39 | % |
| | | | | | | | | | | | | | | | | | | | |
| Advances & borrowed money | | | 58,430 | | | 769 | | | 5.34 | % | | 99,355 | | | 1,113 | | | 4.54 | % |
| Total interest bearing liabilities | | | 628,886 | | | 5,337 | | | 3.44 | % | | 552,861 | | | 3,791 | | | 2.78 | % |
| | | | | | | | | | | | | | | | | | | | |
| Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand | | | 48,540 | | | | | | | | | 31,615 | | | | | | | |
| Other Liabilities | | | 11,351 | | | | | | | | | 5,881 | | | | | | | |
| Total liabilities | | | 688,777 | | | | | | | | | 590,356 | | | | | | | |
| Stockholders' equity | | | 48,558 | | | | | | | | | 48,762 | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 737,335 | | | | | | | | $ | 639,118 | | | | | | | |
| Net interest income | | | | | $ | 6,133 | | | | | | | | $ | 4,885 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Average interest rate spread | | | | | | | | | 3.25 | % | | | | | | | | 2.98 | % |
| | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | | | | 3.56 | % | | | | | | | | 3.23 | % |
| | | | | | | | | | | | | | | | | | | | |
(1) Includes non-accrual loans | | | | | | | | | | | | | | | | | | | |
CARVER BANCORP, INC. AND SUBSIDIARIES |
CONSOLIDATED AVERAGE BALANCES |
(In thousands) |
(Unaudited) |
| | | Twelve Months Ended March 31, 2007 | | Twelve Months Ended March 31, 2006 | |
| | | Average | | | | Average | | Average | | | | Average | |
Interest Earning Assets: | | Balance | | Interest | | Yield/Cost | | Balance | | Interest | | Yield/Cost | |
| | | | | | | | | | | | | | |
Loans(1) | | | | | | | | | | | | | |
| Mortgage Loans | | $ | 409,121 | | $ | 24,495 | | | 5.99 | % | $ | 397,707 | | $ | 22,286 | | | 5.60 | % |
| Construction | | | 116,967 | | | 9,823 | | | 8.40 | % | | 44,219 | | | 4,201 | | | 9.50 | % |
| Subtotal Mortgage loans | | | 526,088 | | | 34,318 | | | 6.52 | % | | 441,926 | | | 26,487 | | | 5.99 | % |
| Consumer | | | 925 | | | 99 | | | 10.71 | % | | 1,078 | | | 66 | | | 6.17 | % |
| Small Business | | | 31,045 | | | 2,860 | | | 9.21 | % | | 457 | | | 10 | | | 2.11 | % |
| Total Loans | | | 558,058 | | | 37,277 | | | 6.68 | % | | 443,461 | | | 26,563 | | | 5.99 | % |
| | | | | | | | | | | | | | | | | | | | |
| Available for sale & investment securities: | | | | | | | | | | | | | | | | | | | |
| Available for sale | | | | | | | | | | | | | | | | | | | |
| MBS securities | | | 43,090 | | | 1,749 | | | 4.06 | % | | 85,711 | | | 2,871 | | | 3.35 | % |
| Agency securities | | | 20,427 | | | 973 | | | 4.76 | % | | 19,688 | | | 677 | | | 3.44 | % |
| Other | | | 1,328 | | | 52 | | | 3.91 | % | | 173 | | | -- | | | -- | |
| Subtotal available for sale | | | 64,845 | | | 2,774 | | | 4.28 | % | | 105,571 | | | 3,548 | | | 3.36 | % |
| Held-for-investment: | | | | | | | | | | | | | | | | | | | |
| MBS securities | | | 21,592 | | | 1,128 | | | 5.22 | % | | 27,863 | | | 1,567 | | | 5.63 | % |
| Other | | | 233 | | | 1 | | | 0.43 | % | | 316 | | | 1 | | | 0.25 | % |
| Subtotal held-for-investment | | | 21,825 | | | 1,129 | | | 5.17 | % | | 28,179 | | | 1,568 | | | 5.57 | % |
| Total available for sale & investment securities | | | 86,670 | | | 3,903 | | | 4.50 | % | | 133,750 | | | 5,116 | | | 3.83 | % |
| | | | | | | | | | | | | | | | | | | | |
| FHLB | | | 4,001 | | | 284 | | | 7.10 | % | | 5,522 | | | 291 | | | 5.27 | % |
| Fed funds sold | | | 5,145 | | | 261 | | | 5.07 | % | | 12,166 | | | 412 | | | 3.39 | % |
| Other | | | 1,172 | | | 15 | | | 1.28 | % | | -- | | | 3 | | | -- | |
| Total interest earning assets | | $ | 655,046 | | $ | 41,740 | | | 6.37 | % | $ | 594,899 | | $ | 32,385 | | | 5.44 | % |
| Non-interest earning assets | | | 44,140 | | | | | | | | | 35,198 | | | | | | | |
| Total assets | | $ | 699,186 | | | | | | | | $ | 630,097 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest Bearing Liabilities: | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | |
| Checking | | $ | 25,313 | | $ | 97 | | | 0.38 | % | $ | 24,397 | | $ | 74 | | | 0.30 | % |
| Savings and clubs | | | 136,785 | | | 931 | | | 0.68 | % | | 137,934 | | | 919 | | | 0.67 | % |
| Money market accounts | | | 43,303 | | | 1,133 | | | 2.62 | % | | 36,583 | | | 601 | | | 1.64 | % |
| Certificates of deposit | | | 312,452 | | | 13,036 | | | 4.17 | % | | 237,992 | | | 7,296 | | | 3.07 | % |
| Mortgagors deposits | | | 2,154 | | | 30 | | | 1.39 | % | | 2,044 | | | 30 | | | 1.47 | % |
| Total deposits | | | 520,007 | | | 15,227 | | | 2.93 | % | | 438,950 | | | 8,921 | | | 2.03 | % |
| | | | | | | | | | | | | | | | | | | | |
| Advances & borrowed money | | | 78,450 | | | 4,007 | | | 5.11 | % | | 107,551 | | | 4,572 | | | 4.25 | % |
| Total interest bearing liabilities | | | 598,457 | | | 19,234 | | | 3.21 | % | | 546,501 | | | 13,493 | | | 2.47 | % |
| | | | | | | | | | | | | | | | | | | | |
| Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | |
| Demand | | | 40,677 | | | | | | | | | 29,078 | | | | | | | |
| Other Liabilities | | | 10,738 | | | | | | | | | 6,980 | | | | | | | |
| Total liabilities | | | 649,872 | | | | | | | | | 582,560 | | | | | | | |
| Stockholders' equity | | | 49,314 | | | | | | | | | 47,537 | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 699,186 | | | | | | | | $ | 630,097 | | | | | | | |
| Net interest income | | | | | $ | 22,506 | | | | | | | | $ | 18,892 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Average interest rate spread | | | | | | | | | 3.16 | % | | | | | | | | 2.97 | % |
| | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | | | | | | | 3.44 | % | | | | | | | | 3.18 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
(1) Includes non-accrual loans | | | | | | | | | | | | | | | | | | | |
CARVER BANCORP, INC. AND SUBSIDIARIES |
CONSOLIDATED SELECTED KEY RATIOS |
(Unaudited) |
| | | | | | | | | | | | | |
| | | Three Months Ended | | Twelve Months Ended |
Selected Statistical Data: | | March 31, | | March 31, |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| Return on average assets (1) | | | 0.70 | % | | 0.65 | % | | 0.37 | % | | 0.60 | % |
| Return on average equity (2) | | | 10.59 | | | 8.54 | | | 5.24 | | | 7.93 | |
| Interest rate spread (3) | | | 3.25 | | | 2.98 | | | 3.16 | | | 2.97 | |
| Net interest margin (4) | | | 3.56 | | | 3.23 | | | 3.44 | | | 3.18 | |
| Operating expenses to average assets (5) | | | 3.51 | | | 3.15 | | | 3.34 | | | 3.04 | |
| Efficiency ratio (6) | | | 87.22 | | | 75.48 | | | 91.98 | | | 78.96 | |
| | | | | | | | | | | | | | |
Average interest-earning assets to interest-bearing liabilities | | | 1.10 | x | | 1.09 | x | | 1.09 | x | | 1.09 | x |
| | | | | | | | | | | | | | |
| Net income per share - basic | | $ | 0.51 | | $ | 0.42 | | $ | 1.03 | | $ | 1.50 | |
| Net income per share - diluted | | $ | 0.50 | | $ | 0.41 | | $ | 1.01 | | $ | 1.47 | |
| Average shares outstanding - basic | | | 2,511,978 | | | 2,504,099 | | | 2,511,226 | | | 2,506,029 | |
| Average shares outstanding - diluted | | | 2,566,107 | | | 2,560,299 | | | 2,567,928 | | | 2,564,950 | |
| Cash dividends | | $ | 0.09 | | $ | 0.08 | | $ | 0.35 | | $ | 0.31 | |
| Dividend payout ratio (9) | | | 17.59 | % | | 19.26 | % | | 34.04 | % | | 20.63 | % |
Capital Ratios: | | March 31, | | |
| | | 2007 | | 2006 | | |
| Equity-to-assets (7) | | 7.02 | % | 7.37 | % | |
| Tier I leverage capital ratio (8) | | 7.97 | | 9.40 | | |
| Tier I risk-based capital ratio (8) | | 9.51 | | 12.42 | | |
| Total risk-based capital ratio (8) | | 10.39 | | 13.22 | | |
| | | | | | | |
Asset Quality Ratios: | | | | | | |
| | | | | | | |
| Non performing assets to total assets (10) | | 0.62 | % | 0.42 | % | |
| Non performing assets to total loans receivable (10) | | 0.74 | | 0.55 | | |
| Allowance for loan losses to total loans receivable | | 0.89 | | 0.81 | | |
| Allowance for loan losses to non-performing loans | | 119.93 | | 147.06 | | |
| | | | | | | |
| (1) Net income divided by average total assets, annualized. |
| (2) Net income divided by average total equity, annualized. |
| (3) Combined weighted average interest rate earned less combined weighted average interest rate cost. |
| (4) Net interest income divided by average interest-earning assets, annualized. |
| (5) Non-interest expenses divided by average total assets, annualized. |
| (6) Operating expenses divided by sum of net interest income plus non-interest income. |
| (7) Total equity divided by assets at period end. |
| (8) These ratios reflect consolidated bank only. |
| (9) Dividend paid on common stock during the period divided by net income available to common stockholders for the period. |
| (10) Non performing assets consist of non-accrual loans, loans accruing 90 days or more past due and real estate owned. |
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