[CARVER BANCORP, INC. LOGO]
Contact: David Lilly / Joseph Kuo William Gray
Kekst and Company Carver Bancorp, Inc.
(212) 521-4800 (212) 360-8840
CARVER BANCORP, INC. REPORTS SECOND QUARTER RESULTS
ANNOUNCES SECOND QUARTER EPS OF $0.23, DECLARES $0.08 SECOND QUARTER DIVIDEND
AND ACCELERATES STOCK REPURCHASE PROGRAM
NEW YORK, NEW YORK, OCTOBER 27, 2005 - 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 the three- and six-month
periods ended September 30, 2005, the second quarter of the fiscal year ending
March 31, 2006 ("fiscal 2006").
The Company reported diluted earnings per share of $0.23 for the quarter ended
September 30, 2005 compared to $0.09 diluted earnings per share for the same
period last year. Net income available to common stockholders increased
$395,000, to $601,000 compared to $206,000 for the same period last year. An
increase in non-interest income and a decrease in non-interest expense were
partially offset by lower net interest income and higher income tax expense in
the period.
Deborah C. Wright, Chairman, President and CEO of Carver, stated: "Our retail
group continues to achieve success in building core deposits from our historical
and newly built branches. Modest but consistent growth in core deposits is
fueling similar improvements in depository fees and charges. However, the two
most important factors in Carver's results for the second quarter were the
continued margin compression and the decline in mortgage refinancings. While our
lending balances increased substantially based on growth in originations and
purchases in a highly competitive market for commercial real estate and
affordable housing, loan fees and service charges declined as refinancings
ebbed."
Ms. Wright continued: "We recognize, consistent with our industry, that until
the yield curve begins to steepen, our net interest margin will continue to be
under pressure. As such, we will continue to focus on opportunities to replace
lower yielding investments with higher yielding loans and build core and other
low cost sources of deposits."
Ms. Wright continued: "We continue to conduct a comprehensive review of costs to
improve the Company's efficiency ratio. Much of the increase in Carver's
operating expenses follows the investment made to grow the franchise, which we
believe will create long-term shareholder value. Nevertheless, we made progress
last quarter in reducing costs as we successfully completed the outsourcing of
our ATM driving technology. We are also working on outsourcing a number of
corporate administrative functions."
Ms. Wright concluded: "We are pleased to report that as part of our commitment
to deliver value to our shareholders the Company's Board of Directors declared a
quarterly dividend of $0.08 per share for the second quarter, payable on
November 22, 2005, to shareholders of record at the close of business on
November 8, 2005. In addition, the Board of Directors has decided that the
outlook for Carver's future long-term growth and earnings support management's
recommendation to return up to $2.5 million of capital to shareholders through
an acceleration of repurchases over the next 18 months of the remaining 148,051
shares authorized under the 2002 stock repurchase program. We believe that this
overall program to deliver value to our shareholders highlights our confidence
in the future success of Carver."
STOCK REPURCHASE PROGRAM
In August 2002, Carver's Board of Directors authorized a stock repurchase
program to acquire up to 231,635 shares of the Company's outstanding common
stock, or approximately 10 percent of the then outstanding shares. Since that
time, the Company has purchased 83,584 shares at an average price of $17.03 to
fund its stock-based benefit and compensation plans. On October 25, 2005, the
Board of Directors approved accelerating the repurchase of the remaining 148,051
shares under the 2002 program, or up to a $2.5 million total investment, to take
place over the next 18 months. This acceleration is designed not only to return
capital to shareholders and capitalize on current trading values, but also to
continue funding stock-based benefit and compensation plans. Purchases for the
stock repurchase program may be made from time to time on the open market and in
privately negotiated transactions. The timing and actual number of shares
repurchased under the plan depends on a variety of factors including price,
corporate and regulatory requirements, and other market conditions.
INCOME STATEMENT HIGHLIGHTS
Quarterly Results
- -----------------
Net income available to common stockholders increased $395,000, or 191.7%, to
$601,000 compared to $206,000 for the same period last year. These results were
primarily due to a $433,000 decrease in non-interest expense, a $201,000
increase in non-interest income and a decrease of $49,000 in dividends paid to
preferred shareholders in the same period last year. Partially offsetting the
increase in net income available to common stockholders was a $110,000 decrease
in net interest income and an increase in income tax expense of $178,000, as
further described below.
Net interest income decreased $110,000, or 2.4%, to $4.5 million compared to
$4.6 million for the same period last year. This decline was a result of an
increase in interest expense of $845,000, or 35.7%, partially offset by an
increase in interest income of $735,000, or 10.5%, compared to the same period
last year. Interest expense rose primarily as a result of an increase in the
cost of money market and certificates of deposit accounts of 61 and 91 basis
points, respectively. Interest income rose despite declining yields primarily as
a result of increased real estate mortgage loan balances.
The Company did not provide for additional loan loss reserves as the Company
considers the current overall allowance for loan losses to be adequate.
Non-interest income increased $201,000, or 24.2%, to $1.0 million compared to
$830,000 for the same period last year. Non-interest income was affected by two
significant events in the prior year's quarter. The first was a $1.5 million
impairment charge deemed other than temporary that resulted from a decline in
the market price of Independence Federal Savings Bank common stock that the
Company held. Partially offsetting the impairment charge in the prior year's
quarter was the receipt of a net $1.1 million grant from the department of the
Treasury. In the current quarter, non-interest income increased as a result of
additional deposit fees and charges of $133,000 from increased ATM and debit
card fees as well as commissions from the sale of investments and life
insurance. Partially offsetting non-interest income was a decline in loan fees
and service charges of $218,000, primarily a reduction in prepayment penalty
income as a result of slowing mortgage refinance activity.
Non-interest expense decreased $433,000, or 8.5%, to $4.6 million compared to
$5.1 million for the same period last year. The decrease in non-interest expense
was primarily due to a charge of $847,000 taken in the prior year quarter
resulting from the expensing of capitalized costs related to the cessation of
the merger with Independence Federal Savings Bank. In the current quarter,
employee compensation and benefits expense increased $262,000 primarily as a
result of staffing our new branches, Company-wide annual salary increases and
the increased cost of employee benefit plans. Also contributing to the increase
in non-interest expense in the current quarter were additional net occupancy and
equipment expenses of $105,000 and $93,000, respectively, primarily resulting
from the new branches and 24/7 ATM centers.
Income before taxes increased $524,000, or 129.1%, to $930,000 compared to
$406,000 for the same period last year. Income taxes increased $178,000, or
117.9%, to $329,000 compared to $151,000 for the same period last year,
primarily due to the increase in income before taxes.
Six-Month Results
- -----------------
Net income available to common stockholders increased $203,000, or 16.4%, to
$1.4 million compared to $1.2 million for the same period last year. The
increase is primarily due to higher non-interest income of $459,000, a decrease
of $98,000 in dividends paid for preferred stock due to a conversion of the
preferred stock to common stock in the prior year, an increase in net interest
income of $47,000 and a decrease in income taxes of $21,000. Partially
offsetting the increase in net income available to common stockholders was an
increase in non-interest expense of $422,000, as detailed below.
Net interest income increased by $47,000, or 0.5%, to $9.2 million, relatively
unchanged from the same period last year. Interest income increased $1.8
million, or 12.9%, compared to the same period last year primarily as a result
of increased real estate mortgage loan balances. Partially offsetting the rise
in interest income was additional interest expense of $1.7 million, or an
increase of 38.1%, compared to the same period last year, primarily due to
increased rates and deposit balances.
Non-interest income increased $459,000, or 23.3%, to $2.4 million compared to
$2.0 million for the same period last year. Non-interest income increased
compared to the second quarter of fiscal 2005 when the Company recognized an
impairment charge deemed other than temporary of $1.5 million, resulting from
the decline in market price of 150,000 shares of Independence stock that the
Company held. In the second quarter of fiscal 2006, depository fees and charges
increased $242,000, resulting from higher ATM usage, growth in debit card income
and commissions earned from the sale of investments and life insurance. Also
contributing to the rise in non-interest income was an increase of $71,000 in
other income, primarily income earned as a result of the Bank's investment in a
Bank owned life insurance ("BOLI") program. These increases were partially
offset by a net $1.1 million grant from the Department of the Treasury's
Community Development Financial Institution Fund and a $94,000 gain from the
sale of securities, both in the same period last year. Loan fees and service
charges declined $67,000, primarily as a result of decreased mortgage prepayment
penalties following continued decline in mortgage refinancing activity.
Non-interest expense increased $422,000, or 4.7%, to $9.4 million compared to
$9.0 million for the same period last year. The increase in non-interest expense
was due to increases in employee compensation and benefits expense of $785,000,
resulting from the staffing of new branches, Company-wide annual salary
increases in the second quarter of fiscal 2006 and the increased cost of
employee benefit plans. Also contributing to the increase in non-interest
expense were additional net occupancy and equipment expenses of $203,000 and
$165,000, respectively, also as a result of opening the new branches and 24/7
ATM centers. Partially offsetting the increase in non-interest expense was a
charge of $847,000 incurred in the same period last year, which resulted from
expensing previously capitalized costs related to cessation of the merger with
Independence Federal Savings Bank.
Income before taxes increased $84,000, or 3.9%, to $2.2 million relatively
unchanged from the same period last year. Income taxes decreased $21,000, or
2.6%, to $793,000 compared to $814,000 for the same period last year due to a
decline in the effective tax rate as a result of the tax benefit associated with
the Bank's investment in a BOLI program.
FINANCIAL CONDITION HIGHLIGHTS
At September 30, 2005 total assets increased by $21.3 million, or 3.4%, to
$647.7 million compared to $626.4 million at March 31, 2005. The asset growth
primarily reflects increases in total loans receivable, net, and other assets of
$29.3 million and $5.3 million, respectively. The increase in total loans
receivable, net, is attributable to new mortgage loan originations and purchases
exceeding mortgage loan repayments. The increase in other assets is primarily
attributable to a short term receivable related to mortgage-backed security
principal repayments being held as collateral by New York State. The increase in
total assets was partially offset by a decline in total securities of $13.3
million primarily as a result of maturities and repayments. Cash and cash
equivalents declined $652,000 as liquid funds were used to fund loan growth.
At September 30, 2005, total liabilities increased by $19.6 million, or 3.4%, to
$600.2 million from $580.6 million at March 31, 2005. The increase in
liabilities is a result of deposit growth of $12.4 million and increases in
advances from the Federal Home Loan Bank of New York of $10.0 million, which
were used to fund loan growth. Partially offsetting the increase in total
liabilities was a decrease in other liabilities of $2.8 million, resulting
primarily from the payment of income taxes.
At September 30, 2005, total stockholders' equity increased $1.7 million, or
3.7%, to $47.5 million compared to $45.8 million at March 31, 2005. The increase
in total stockholders' equity was primarily attributable to increased retained
earnings of $1.1 million from net income derived during fiscal 2006.
Additionally, an increase of $435,000 was attributable to the re-issuance of
common stock the Company previously repurchased to fund its compensation and
benefit programs. Also contributing to the increase in stockholders' equity was
an additional $182,000 in accumulated other comprehensive income related to the
mark-to-market of the Bank's available-for-sale securities.
ASSET QUALITY
At September 30, 2005, non-performing assets totaled $2.7 million, or 0.59% of
total loans receivable, compared to $998,000, or 0.23% of total loans
receivable, at March 31, 2005. While non performing assets have increased, the
level of non performing assets to total loans remains within the range the Bank
has experienced over the trailing eight quarters. At September 30, 2005, the
allowance for loan losses of $4.1 million remained relatively unchanged from
March 31, 2005. At September 30, 2005, the ratio of the allowance for loan
losses to non-performing loans was 150.8% compared to 410.7% at March 31, 2005.
At September 30, 2005, the ratio of the allowance for loan losses to total loans
receivable was 0.89% compared to 0.96% at March 31, 2005.
ADJUSTMENT TO EARNINGS RELEASE SCHEDULE
Beginning next quarter, Carver intends to issue its quarterly earnings press
release approximately 45 days following quarter end, at the same time the
Company files its Securities and Exchange Commission ("SEC") Form 10-Q. Carver
also intends to issue its fiscal year end earnings release 45 days following the
fiscal year end, but the Company's SEC Form 10-K will be filed within 90 days of
year end. Changes in the timing of the earnings press release reflect a growing
trend driven in part by the impact of Sarbanes-Oxley and other reporting
requirements.
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 eight
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.
Statements contained in this news release, which are not historical facts are
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, (the "Securities Act"), and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). These
forward-looking statements may be identified by the use of such words as
"believe," "expect," "anticipate," "intend," "should," "will," "would," "could,"
"may," "planned," "estimated," "potential," "outlook," "predict," "project" and
similar terms and phrases, including references to assumptions. Forward-looking
statements are based on various assumptions and analyses made by the Company in
light of management's experience and its perception of historical trends,
current conditions and expected future developments, as well as other factors
believed to be appropriate under the circumstances. These statements are not
guarantees of future performance and are subject to risks, uncertainties and
other factors, many of which are beyond the Company's control, that could cause
actual results to differ materially from future results expressed or implied by
such forward-looking statements. Factors which could result in material
variations include, without limitation, the Company's success in implementing
its initiatives, including expanding its product line, adding new branches and
ATM centers, successfully re-branding its image and achieving greater operating
efficiencies; increases in competitive pressure among financial institutions or
non-financial institutions; legislative or regulatory changes which may
adversely affect the Company's business or increase the cost of doing business;
technological changes which may be more difficult or expensive than we
anticipate; changes in interest rates which may reduce net interest margins and
net interest income; changes in deposit flows, loan demand or real estate values
which may adversely affect the Company's business; changes in accounting
principles, policies or guidelines which may cause the Company's condition to be
perceived differently; litigation or other matters before regulatory agencies,
whether currently existing or commencing in the future, which may delay the
occurrence or non-occurrence of events longer than anticipated; the ability of
the Company to originate and purchase loans with attractive terms and acceptable
credit quality; and general economic conditions, either nationally or locally in
some or all areas in which the Company does business, or conditions in the
securities markets or the banking industry which could affect liquidity in the
capital markets, the volume of loan origination, deposit flows, real estate
values, the levels of non-interest income and the amount of loan losses. The
forward-looking statements contained within herein are made as of the date of
this report, and the Company assumes no obligation to update these
forward-looking statements to reflect actual results, changes in assumptions or
changes in other factors affecting such forward-looking statements or to update
the reasons why actual results could differ from those projected in the
forward-looking statements. You should consider these risks and uncertainties in
evaluating forward-looking statements and you should not place undue reliance on
these statements.
# # #
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)
SEPTEMBER 30, MARCH 31,
2005 2005
------------ -------------
(UNAUDITED)
ASSETS
Cash and cash equivalents:
Cash and due from banks $ 10,468 $ 13,020
Federal funds sold 8,700 6,800
Interest Earning Deposits 600 600
------------ -------------
Total cash and cash equivalents 19,768 20,420
Securities:
Available-for-sale, at fair value (including pledged as collateral
of $104,882 at September 30, 2005 and $112,503 at March 31, 2005) 108,150 118,033
Held-to-maturity, at amortized cost (including pledged as collateral
of $27,460 at September 30, 2005 and $30,900 at March 31, 2005;
fair value of $27,575 at September 30, 2005 and $31,310 at
March 31, 2005) 27,836 31,302
------------ -------------
Total securities 135,986 149,335
Loans receivable:
Real estate mortgage loans 453,837 424,387
Consumer and commercial business loans 1,502 1,697
Allowance for loan losses (4,064) (4,097)
------------ -------------
Total loans receivable, net 451,275 421,987
Office properties and equipment, net 13,718 13,658
Federal Home Loan Bank of New York stock, at cost 5,624 5,125
Real estate owned 10 -
Accrued interest receivable 2,912 2,702
Other assets 18,405 13,150
------------ -------------
Total assets $647,698 $626,377
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $465,855 $453,454
Advances from the Federal Home Loan Bank of New York and other
borrowed money 125,316 115,299
Other liabilities 9,039 11,823
------------ -------------
Total liabilities 600,210 580,576
Stockholders' equity:
Common stock (par value $0.01 per share: 10,000,000 shares authorized;
2,524,691 shares issued; 2,513,458 and 2,501,338 outstanding at
September 30, 2005 and March 31, 2005, respectively) 25 25
Additional paid-in capital 23,941 23,937
Retained earnings 23,814 22,748
Unamortized awards of common stock under ESOP and management recognition
plan ("MRP") (37) (128)
Treasury stock, at cost (11,233 shares at September 30, 2005 and
23,353 shares at March 31, 2005) (202) (546)
Accumulated other comprehensive loss (53) (235)
------------ -------------
Total stockholders' equity 47,488 45,801
------------ -------------
Total liabilities and stockholders' equity $647,698 $626,377
============ =============
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------- -------------------------------
2005 2004 2005 2004
------------- ------------ ------------ -------------
Interest Income:
Loans $ 6,214 $ 5,700 $ 12,421 $ 11,116
Mortgage-backed securities 1,135 1,102 2,260 2,129
Investment securities 277 189 551 422
Federal funds sold 122 22 268 58
------------- ------------ ------------ -------------
Total interest income 7,748 7,013 15,500 13,725
Interest expense:
Deposits 2,096 1,313 3,966 2,438
Advances and other borrowed money 1,117 1,055 2,298 2,098
------------- ------------ ------------ -------------
Total interest expense 3,213 2,368 6,264 4,536
Net interest income 4,535 4,645 9,236 9,189
Provision for loan losses - - - -
------------- ------------ ------------ -------------
Net interest income after provision for loan losses 4,535 4,645 9,236 9,189
Non-interest income:
Depository fees and charges 668 535 1,297 1,055
Loan fees and service charges 339 557 1,013 1,080
Gain on sale of securities - - - 94
Impairment of securities - (1,472) - (1,472)
Gain on sale of loans 10 44 20 45
Grant income - 1,140 - 1,140
Other 14 26 99 28
------------- ------------ ------------ -------------
Total non-interest income 1,031 830 2,429 1,970
Non-interest expense:
Employee compensation and benefits 2,330 2,068 4,854 4,069
Net occupancy expense 578 473 1,079 876
Equipment, net 488 395 929 764
Merger related expenses - 847 - 847
Other 1,240 1,286 2,568 2,452
------------- ------------ ------------ -------------
Total non-interest expense 4,636 5,069 9,430 9,008
Income before income taxes 930 406 2,235 2,151
Income taxes 329 151 793 814
------------- ------------ ------------ -------------
Net income $ 601 $ 255 $ 1,442 $ 1,337
============= ============ ============ =============
Dividends applicable to preferred stock $ - $ 49 $ - $ 98
Net income available to common stockholders $ 601 $ 206 $ 1,442 $ 1,239
============= ============ ============ =============
Earnings per common share:
Basic $ 0.24 $ 0.09 $ 0.58 $ 0.54
============= ============ ============ =============
Diluted $ 0.23 $ 0.09 $ 0.56 $ 0.51
============= ============ ============ =============
CARVER BANCORP, INC. AND SUBSIDIARIES
SELECTED KEY RATIOS
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
SELECTED FINANCIAL DATA: SEPTEMBER 30, SEPTEMBER 30,
------------------------------ ------------------------------
2005 2004 2005 2004
------------- ------------ ------------ -------------
Return on average assets (1) 0.39% 0.18% 0.46% 0.48%
Return on average equity (2) 5.10 2.23 6.12 5.90
Interest rate spread (3) 2.94 3.22 2.96 3.20
Net interest margin (4) 3.11 3.40 3.14 3.44
Operating expenses to average assets (5) 2.97 3.54 3.03 3.21
Efficiency ratio (6) 83.29 92.58 80.84 80.72
Equity-to-assets (7) 7.33 7.84 7.33 7.84
Tier I leverage capital ratio (8) 9.26 9.62 9.26 9.62
Tier I risk-based capital ratio (8) 13.39 14.85 13.39 14.85
Total risk-based capital ratio (8) 14.30 15.95 14.30 15.95
Average interest-earning assets to
interest-bearing liabilities 1.08 x 1.10 x 1.08 x 1.13 x
Net income per share - basic $0.24 $0.09 $0.58 $0.54
Net income per share - diluted $0.23 $0.09 $0.56 $0.51
Average shares outstanding - basic 2,510,477 2,291,761 2,505,469 2,288,190
Average shares outstanding - diluted 2,573,156 2,589,112 2,570,540 2,593,540
Cash dividends $0.08 $0.07 $0.15 $0.14
Dividend payout ratio (9) 33.44% 62.98% 26.09% 20.55%
ASSET QUALITY RATIOS: SEPTEMBER 30, MARCH 31,
------------------------------ ------------------------------
2005 2004 2005 2004
------------- ------------ ------------ -------------
Non performing assets to total assets (10) 0.42% 0.31% 0.16% 0.39%
Non performing assets to total loans receivable (10) 0.59 0.47 0.23 0.60
Allowance for loan losses to total loans receivable 0.89 1.08 0.96 1.16
Allowance for loan losses to non-performing loans 150.8% 229.0% 410.7% 194.3%
(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 less loss on real estate owned 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.
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(Dollars in thousands)
(Unaudited)
THREE MONTHS ENDED SEPTEMBER 30,
---------------------------------------------------------------------------------------
2005 2004
------------------------------------------ ------------------------------------------
AVERAGE AVERAGE AVERAGE AVERAGE
INTEREST EARNING ASSETS: BALANCE INTEREST YIELD/COST BALANCE INTEREST YIELD/COST
------------- ------------ ------------ ------------- ------------ ------------
(DOLLARS IN THOUSANDS)
Loans (1) $424,882 $ 6,214 5.85% $380,052 $ 5,700 6.00%
Total securities (2) 146,781 1,412 3.85% 159,616 1,291 3.24%
Fed funds sold 14,639 122 3.31% 6,579 22 1.34%
------------- ------------ ------------ ------------- ------------ ------------
Total interest earning assets 586,302 7,748 5.29% 546,247 7,013 5.14%
Non-interest earning assets 37,090 26,593
------------- -------------
Total assets $623,392 $572,840
============= =============
INTEREST BEARING LIABILITIES:
Deposits:
Checking $ 24,028 18 0.30% $ 20,549 17 0.34%
Savings and clubs 137,562 226 0.65% 132,848 202 0.61%
Money market accounts 40,573 160 1.56% 29,621 70 0.95%
Certificates of deposit 229,670 1,684 2.91% 204,125 1,018 2.00%
------------- ------------ ------------ ------------- ------------ ------------
Total deposits 431,833 2,088 1.92% 387,143 1,307 1.35%
Mortgagors deposits 1,989 8 1.60% 2,846 6 0.90%
Borrowed money 107,508 1,117 4.12% 105,690 1,055 4.01%
------------- ------------ ------------ ------------- ------------ ------------
Total interest bearing liabilities 541,330 3,213 2.35% 495,679 2,368 1.92%
Non-interest-bearing liabilities:
Demand 27,888 24,568
Other Liabilities 7,049 6,820
------------- -------------
Total liabilities 576,267 527,067
Stockholders' equity 47,125 45,773
------------- -------------
Total liabilities and stockholders'
equity $623,392 $572,840
============= ------------ ============= ------------
Net interest income $ 4,535 $ 4,645
============ ============
Average interest rate spread 2.94% 3.22%
============ ============
Net interest margin 3.11% 3.40%
============ ============
(1) Includes non-accrual loans
(2) Includes FHLB-NY stock
CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
(Dollars in thousands)
(Unaudited)
SIX MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------------------------------------------
2005 2004
--------------------------------------------- -------------------------------------------
AVERAGE AVERAGE AVERAGE AVERAGE
INTEREST EARNING ASSETS: BALANCE INTEREST YIELD/COST BALANCE INTEREST YIELD/COST
--------------- ------------ ------------ ------------- ------------ ------------
(DOLLARS IN THOUSANDS)
Loans (1) $ 421,895 $ 12,421 5.89% $370,276 $ 11,116 6.00%
Total securities (2) 150,594 2,811 3.73% 153,990 2,551 3.31%
Fed funds sold 17,347 268 3.08% 11,294 58 1.02%
--------------- ------------ ------------ ------------- ------------ ------------
Total interest earning assets 589,836 15,500 5.26% 535,560 13,725 5.11%
Non-interest earning assets 36,372 24,837
--------------- -------------
Total assets $ 626,208 $560,397
=============== =============
INTEREST BEARING LIABILITIES:
Deposits:
Checking $ 24,858 38 0.30% $ 11,763 36 0.59%
Savings and clubs 138,695 449 0.65% 132,867 400 0.60%
Money market accounts 38,635 285 1.47% 30,197 136 0.90%
Certificates of deposit 228,540 3,177 2.77% 192,270 1,854 1.92%
--------------- ------------ ------------ ------------- ------------ ------------
Total deposits 430,728 3,949 1.83% 367,097 2,426 1.32%
Mortgagors deposits 2,290 17 1.48% 2,472 12 0.94%
Borrowed money 110,907 2,298 4.13% 105,023 2,098 4.00%
--------------- ------------ ------------ ------------- ------------ ------------
Total interest bearing liabilities 543,925 6,264 2.30% 474,592 4,536 1.91%
Non-interest-bearing liabilities:
Demand 27,660 33,209
Other Liabilities 7,767 7,247
--------------- -------------
Total liabilities 579,352 515,048
Stockholders' equity 46,856 45,349
--------------- -------------
Total liabilities and stockholders'
equity $ 626,208 $560,397
=============== ------------ ============= ------------
Net interest income $ 9,236 $ 9,189
============ ============
Average interest rate spread 2.96% 3.20%
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Net interest margin 3.14% 3.44%
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(1) Includes non-accrual loans
(2) Includes FHLB-NY stock