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, May 31, 2007 (PRIME NEWSWIRE) -- 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.
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 Twelve Months Ended
March 31, 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 March 31, 2006
-------------------------- ------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------- -------- ----- ------- -------- -----
Interest Earning
Assets:
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 March 31, 2006
-------------------------- ------------------------
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
-------- -------- ----- ------- -------- -----
Interest Earning
Assets:
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
March 31, March 31,
--------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Selected Statistical
Data:
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 1.10x 1.09x 1.09x 1.09x
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.