Carver Bancorp, Inc. Reports Second Quarter Fiscal Year 2013 Results

Carver Bancorp, Inc. Reports Second Quarter Fiscal Year 2013 Results

NEW YORK, Nov. 13, 2012 (GLOBE NEWSWIRE) -- Carver Bancorp, Inc. (the
"Company") (Nasdaq:CARV), the holding company for Carver Federal Savings Bank
("Carver" or the "Bank"), today announced financial results for its second
fiscal quarter of 2013 ended September 30, 2012 ("Fiscal 2013").

The Company reported a net loss of $0.1 million or a loss per share of $0.04
for the second quarter of Fiscal 2013, compared to a net loss of $9.5 million
or a loss per share of $58.67, for the prior year period. For the six months
ended September 30, 2012 , reported net losses totaled $0.5 million or a loss
per share of $0.14, compared to a net loss of $15.6 million or a loss per
share of $95.68 for the prior year period.

Deborah C. Wright, Carver Bancorp Chairman and CEO said, "Returning our loan
performance metrics to industry standards and substantially increasing our
revenues remain our two core priorities. We are pleased to report that our
financial performance continued to strengthen over the quarter, as we achieved
our best results for any period over the prior three fiscal years. This
quarter, our loan performance continued to improve with non-performing assets
declining 10.9% from the prior quarter and 46.1% year-over-year. As we have
previously stated, we expect this effort to continue through the balance of
the fiscal year, which may lead to uneven results over the next several
quarters."

Ms. Wright added: "As a community bank, our net interest margin continued to
be impacted by larger industry headwinds. We have begun to see a slowdown in
the net reduction in total loans as we have strategically rebuilt our lending
team and revenues from Carver Community Cash continue to increase. We believe
these trends will accelerate with the opening of our first branch in East
Harlem later this month and the roll out of five self-service check cashing
kiosks over the next month across our operating markets."

"Finally, our heartfelt concern remains with all those impacted by Hurricane
Sandy. Our employees worked tirelessly to restore operations at Carver in the
wake of the storm through much personal sacrifice. We were able to service our
customers in all but one branch just one day after the hurricane hit the New
York metropolitan area," Ms. Wright concluded.

Income Statement Highlights

Second Quarter Results

The Company reported a net loss for the three months ended September 30, 2012
of $0.1 million compared to a net loss of $9.5 million for the prior year
period. The primary drivers of the reduction in loss versus the prior year
period were lower loan provision charges, higher non-interest income including
fee income earned on a new markets tax credit ("NMTC") award transaction and
gains on sale of loans held for sale ("HFS"), and lower non-interest expense
partially offset by lower net interest income.

Net Interest Income

Interest income decreased $1.3 million, or 17.8%, to $6.1 million in the
second quarter, compared to the prior year quarter, primarily attributed to a
$134.8 million, or 24.6%, decrease in average loans. The average yield on
mortgage-backed securities fell 73 basis points to 2.09% from 2.82% during the
quarter, as higher yielding securities experienced early payoffs and were
replaced with lower yielding securities. Although the average yield on loans
increased 23 basis points to 5.30% from 5.07%, the decrease in average loans
reduced total interest income on loans. Interest income and net interest
margin will continue to be under pressure as unit average loan balances
increase due to the low yields available on alternative earning assets.

Interest expense decreased $0.5 million, or 29.0%, to $1.3 million for the
second quarter, compared to $1.8 million for the prior year quarter, as lower
cost deposits replaced borrowings. The average yield on interest bearing
liabilities decreased 40 basis points to 1.01% for the quarter ended September
30, 2012.

Provision for Loan Losses

The Company recorded a $0.6 million provision for loan losses for the second
quarter compared to $7.0 million for the prior year quarter. Net charge-offs
of $2.8 million were recognized compared to $7.0 million in the prior year
period. The charge-offs in both quarters to the provision were primarily
related to impaired loans and loans that moved to HFS. The impact of the
charge-offs to the provision was partially offset by a reduction in the
allowance for loan losses, which was primarily due to reductions in loss
experience and, to a lesser extent, a decline in loan balances.

Non-interest Income

Non-interest income increased $1.6 million, or 194.0%, to $2.4 million for the
second quarter, compared to $0.8 million for the prior year quarter. The
increase was primarily due to a $0.6 million gain on sale of a HFS loan and a
$0.6 million fee earned on a NMTC transaction.

Non-interest Expense

Non-interest expense decreased $0.7 million to $6.9 million compared to $7.6
million in the prior year quarter. Non-interest expense was lower in all
categories with the largest decreases comprised of $0.4 million in
compensation expenses and $0.3 million in collection expenses and charge-offs
related to non-performing assets.

Income Taxes

The income tax expense was $36 thousand for the second quarter compared to
$185 thousand for the prior year period.

Six Month Results

The Company reported a net loss for the six months ended March 31, 2012 of
$0.5 million compared to a net loss of $15.6 million for the prior year
period. Primary drivers of the reduction in loss versus the prior year period
were reductions in the provision for loan losses and certain non-interest
expense categories and increases in non-interest income.

Net Interest Income

Interest income decreased $2.4 million, or 16.40%, to $12.3 million in the six
month period, compared to the prior year period, with the decrease primarily
attributed to a $142.2 million, or 25%, decrease in average loans. The average
yield on mortgage-backed securities fell 80 basis points to 2.11% from 2.91%
during the prior year period, as higher yielding securities experienced early
payoffs and were replaced with lower yielding investment securities. The
average yield on loans increased 41 basis points to 5.25% from 4.84%, which
was directly related to the lower levels of non-performing loans in the
portfolio. However, the drop in average loans decreased total interest income
on loans.

Interest expense decreased $1.1 million, or 30.81%, to $2.6 million for the
six month period, compared to $3.7 million for the prior year period, as lower
cost deposits replaced borrowings. The average yield on interest bearing
liabilities decreased 41 basis points to 1.03% for the six months ended
September 30, 2012.

Provision for Loan Losses

The Company recorded a $0.8 million provision for loan losses for the six
month period, compared to $12.2 million for the prior year period. For the six
months ended September 30, 2012, net charge-offs of $4.2 million were
recognized compared to $11.4 million, in the prior year period. Charge-offs in
both quarters were primarily related to loans moved to HFS.

Non-interest Income

Non-interest income increased $1.5 million, or 75.8%, to $3.4 million for the
six month period, compared to $1.9 million for the prior year period. The
majority of the increase was attributable to fee income received from a NMTC
transaction, gains on sales of loans during the period and an increase in
depository fees.

Non-interest Expense

Non-interest expense decreased $1.4 million to $13.5 million compared to $14.9
million in the prior year period. Non-interest expense was lower in all
categories with the largest decreases comprised of $0.8 million in
compensation expenses, $0.2 million in collection expenses and charge-offs
related to non-performing assets and a decline of $0.1 million in FDIC
premiums.

Income Taxes

The income tax expense was $196 thousand for the six month period compared to
$76 thousand for the prior year period.

Financial Condition Highlights

At September 30, 2012, total assets decreased $3.0 million, or 0.46%, to
$638.3 million, compared to $641.2 million at March 31, 2012. Investment
securities increased $28.3 million. This increase was partially offset by
decreases in the loan portfolio of $32.9 million, the allowance for loan
losses of $3.4 million and loans HFS of $2.8 million.

Total securities increased $28.3 million, or 29.44%, to $124.5 million at
September 30, 2012, compared to $96.2 million at March 31, 2012. This change
reflects an increase of $29.4 million in available-for-sale securities offset
by a $1.0 million decrease in held-to-maturity securities, as the Company
diversified its investment portfolio to increase earning assets.

Total loans receivable decreased $32.9 million, or 7.97%, to $380.0 million at
September 30, 2012, compared to $412.9 million at March 31, 2012; $32.2
million of principal repayments and loan payoffs across all loan
classifications comprised the majority of the decrease, with the largest
declines in multi-family and business loans. An additional $7.7 million in
loans were transferred from held for investment to HFS. Principal charge-offs
for the fiscal year totaled $3.8 million. Decreases were partially offset by
loan originations and advances of $10.9 million. The decrease of $3.4 million
in the allowance for loan losses is due to a reduction in the portfolio's
total loss experience and the decrease in loan volume.

HFS loans decreased $2.8 million to $26.8 million. The Company continued to
take aggressive steps to increase resolution of troubled loans. During the
period, this portfolio increased $7.2 million, net of charge-offs, offset by
$10.0 million of sales and paydowns.

Total liabilities decreased $1.5 million, or 0.26%, to $583.1 million at
September 30, 2012, compared to $584.6 million at March 31, 2012, due to
reductions in deposits of $26.2 million, partially offset by an increase in
short-term borrowings of $22.0 million.

Deposits decreased $26.2 million, or 4.92%, to $506.4 million at September 30,
2012, compared to $532.6 million at March31, 2012, due principally to $9
million of planned withdrawals from non-interest bearing control disbursements
accounts and management's decision to allow higher cost certificates of
deposit to roll off the balance sheet.

Advances from the Federal Home Loan Bank of New York (FHLB-NY) and other
borrowed money increased $22.0 million, or 50.62%, to $65.4 million at
September30, 2012, compared to $43.4 million at March31, 2012, as the
Company increased short-term borrowings during the six month period.

Total equity decreased $1.4 million, or 2.54%, to $55.2 million at
September30, 2012, compared to $56.6 million at March31, 2012. The decline
reflects a net loss before taxes of $1.2 million (excluding non-controlling
interest) and a change in accumulated other comprehensive loss of $0.2
million.

Asset Quality

At September30, 2012, non-performing assets totaled $63.9 million, or 10.01%
of total assets, compared to $86.4 million or 13.5% of total assets at
March31, 2012, and $118.6 million or 17.49% of total assets at September30,
2011. Non-performing assets at September30, 2012 were comprised of $9.5
million of loans 90 days or more past due and non-accruing, $16.9 million of
loans classified as a troubled debt restructuring, $8.6 million of loans that
are either performing or less than 90 days past due that have been classified
as impaired, $2.1 million of REO ("Real Estate Owned"), and $26.8 million of
loans classified as HFS.

The allowance for loan losses was $16.4 million at September30, 2012, which
represents a ratio of the allowance for loan losses to non-performing loans of
46.9% compared to 36.3% at March31, 2012. The ratio of the allowance for loan
losses to total loans was 4.3% at September30, 2012, a decline from 4.8% at
March31, 2012.

About Carver Bancorp, Inc.

Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a
federally chartered stock savings bank, founded in 1948 to serve
African-American communities whose residents, businesses, and institutions had
limited access to mainstream financial services.Carver, the largest African-
and Caribbean-American run bank in the United States, operates nine
full-service branches in the New York City boroughs of Brooklyn, Manhattan,
and Queens.For further information, please visit the Company's website at
www.carverbank.com.

  Certain statements in this press release are "forward-looking statements"
  within the meaning of the Private Securities Litigation Reform Act.These
 statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances.Actual results may differ materially
from those included in these statements due to a variety of factors, risks and
 uncertainties.More information about these factors, risks and uncertainties
 is contained in our filings with the Securities and Exchange Commission.

CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                                                  
                                                     September 30, March
                                                                    31,
$ In thousands, except per share data                 2012          2012
ASSETS                                                             
Cash and cash equivalents:                                         
Cash and due from banks                               $82,179     $89,872
Money market investments                              9,898        1,825
Total cash and cash equivalents                       92,077       91,697
Restricted cash                                       6,415        6,415
Investment securities:                                             
Available-for-sale, at fair value                     114,462      85,106
Held-to-maturity, at amortized cost(fair value
of$10,737 and $11,774 at September 30, 2012 and      10,038       11,081
March 31, 2012, respectively)
Total investments                                     124,500      96,187
                                                                  
Loans held-for-sale ("HFS")                           26,830       29,626
                                                                  
Loans receivable:                                                  
Real estate mortgage loans                            343,402      367,611
Commercial business loans                             36,132       43,989
Consumer loans                                        416          1,258
Loans, net                                            379,950      412,858
Allowance for loan losses                             (16,408)     (19,821)
Total loans receivable, net                           363,542      393,037
Premises and equipment, net                           9,084        9,573
Federal Home Loan Bank of New York ("FHLB-NY") stock, 3,008        2,168
at cost
Accrued interest receivable                           2,438        2,256
Other assets                                          10,380       10,271
Total assets                                          $638,274    $641,230
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                               
LIABILITIES:                                                       
Deposits:                                                          
Savings                                               98,615       101,079
Non-Interest Bearing Checking                         59,344       67,202
NOW                                                   24,977       28,325
Money Market                                          110,206      109,404
Certificates of Deposit                               213,234      226,587
Total Deposits                                        506,376      532,597
Advances from the FHLB-New York and other borrowed    65,414       43,429
money
Other liabilities                                     11,304       8,585
Total liabilities                                     583,094      584,611
                                                                  
Stockholders' equity:                                              
Preferred stock, (par value $0.01, per share), 45,118
Series D shares, with a liquidation preference of     45,118       45,118
$1,000 per share, issued and outstanding
*Common stock (par value $0.01 per share: 10,000,000
shares authorized; 3,697,264 issued; 3,695,320 and    61           61
3,695,174 shares outstanding at September 30, 2012
and March 31, 2012, respectively)
Additional paid-in capital                            55,063       54,068
Accumulated deficit                                   (45,599)     (45,091)
Non-controlling interest                              795          2,751
Treasury stock, at cost (1,944 shares at September    (417)        (447)
30, 2012 and 2,090 and March 31, 2012, respectively).
Accumulated other comprehensive loss                  159          159
Total stockholders' equity                            55,180       56,619
Total liabilities and stockholders' equity            $638,274    $641,230

^(*) Common stock shares reflect 1 for 15 reverse stock split which was
effective on October 27, 2011


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                             
                           Three Months Ended       Six Months Ended
                           September 30,            September 30,
$ In thousands except per   2012        2011         2012        2011
share data
Interest Income:                                              
Loans                       $5,486    $6,958     $ 11,074   $ 13,660
Mortgage-backed securities  275        342         569        739
Investment securities       307        116         507        226
Money market investments    49         25          118        49
Total interest income       6,117      7,441       12,268     14,674
                                                             
Interest expense:                                             
Deposits                    906        937         1,882      1,943
Advances and other borrowed 347        827         691        1,776
money
Total interest expense      1,253      1,764       2,573      3,719
                                                             
Net interest income         4,864      5,677       9,695      10,955
Provision for loan losses   560        7,007       784        12,177
Net interest income after   4,304      (1,330)     8,911      (1,222)
provision for loan losses
                                                             
Non-interest income:                                          
Depository fees and charges 892        751         1,688      1,472
Loan fees and service       195        208         395        486
charges
Gain on sales of loans, net 569        135         604        134
Loss on real estate owned   --         (122)       (288)      (124)
New Market Tax Credit       625        --          625        --
("NMTC") fees
Lower of Cost or market
adjustment on loans held    --         (275)       --         (375)
for sale
Other                       153        131         350        326
Total non-interest income   2,434      828         3,374      1,919
                                                             
Non-interest expense:                                         
Employee compensation and   2,704      3,137       5,424      6,182
benefits
Net occupancy expense       916        970         1,774      1,902
Equipment, net              609        537         1,091      1,079
Consulting fees             113        116         180        205
Federal deposit insurance   331        355         674        809
premiums
Other                       2,217      2,512       4,381      4,742
Total non-interest expense  6,890      7,627       13,524     14,919
                                                             
Loss before income taxes    (152)      (8,129)     (1,239)    (14,222)
Income tax                  36         185         196        76
(benefit)/expense
Net loss before attribution (188)      (8,314)     (1,435)    (14,298)
of noncontrolling interests
Non Controlling interest,   (52)       1,136       (936)      1,282
net of taxes
Net loss                    $(136)    $(9,450)   $(499)    $(15,580)
                                                             
Loss per common share:                                        
Basic ^ (*)                 $(0.04)   $(58.67)   $(0.14)    $ (95.68)

^(*) Common stock shares for all periods presented reflects a 1 for 15 reverse
stock split which was approved on October 27, 2011

                                                             
                                                             
CARVER BANCORP, INC. AND SUBSIDIARIES
Non Performing Asset Table
(In thousands)
                                                             
$ In thousands     September   June      March     December   September
                   2012         2012       2012       2011        2011
Loans accounted
for on a                                                      
non-accrual basis
^(1):
Gross loans                                                   
receivable:
One- to            $6,094     $7,363   $6,988   $12,863   $14,335
four-family
Multi-family       1,724       1,790     2,923     2,619      9,106
Commercial real    14,145      16,487    24,467    26,313     16,088
estate
Construction       4,258       4,658     11,325    17,651     31,526
Business           8,717       9,337     8,862     9,825      7,831
Consumer           15          --        23        4          36
Total
non-performing     $34,953    $39,635  $54,588  $69,275   $78,922
loans
                                                             
                                                             
Other
non-performing                                                
assets ^(2):
Real estate owned  $2,119     $1,961   $2,183   $2,183    $275
Loans held for     26,830      30,163    29,626    22,490     39,369
sale
Total other
non-performing     28,949      32,124    31,809    24,673     39,644
assets
Total
non-performing     $63,902    $71,759  $86,397  $93,948   $118,566
assets ^(3):
                                                             
Non-performing
loans to total     9.20%        10.17%     13.22%     15.12%      16.14%
loans
Non-performing
assets to total    10.01%       11.13%     13.47%     14.01%      17.49%
assets
                                                             
^(1)Non-accrual status denotes any loan where the delinquency exceeds 90 days
past due and in the opinion of management the collection of additional
interest and/or principal is doubtful.Payments received on a non-accrual loan
are either applied to the outstanding principal balance or recorded as
interest income, depending on assessment of the ability to collect on the
loan.
^(2) Other non-performing assets generally represent loans that the Bank is
in the process of selling and has designated held for sale or property
acquired by the Bank in settlement of loans less costs to sell (i.e., through
foreclosure, repossession or as an in-substance foreclosure).These assets are
recorded at the lower of their cost or fair value.
^(3)Troubled debt restructured loans performing in accordance with their
modified terms for less than six months and those not performing in accordance
with their modified terms are considered non-accrual and are included in the
non-accrual category in the table above. At September 30, 2012 there were $5.2
million TDR loans that have performed in accordance with their modified terms
for a period of at least six months. These loans are generally considered
performing loans and are not presented in the table above.


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
                                                                  
                    For the Three Months Ended September 30,
                    2012                           2011
$ in thousands       Average            Average    Average            Average
                    Balance    Interest Yield/Cost Balance    Interest Yield/Cost
                                                                  
Interest Earning                                                   
Assets:
Loans ^(1)           $414,092 $5,486 5.30%      $548,887 $6,958 5.07%
Mortgage-backed      52,685    275     2.09%      48,532    342     2.82%
securities
Investment           61,805    221     1.43%      24,081    79      1.31%
securities
Restricted Cash      6,415     1       0.03%      6,215     --      0.03%
Deposit
Equity securities    2,525     23      3.68%      2,657     33      4.93%
^(2)
Other investments
and federal funds    71,831    111     0.61%      41,247    29      0.28%
sold
Total
interest-earning     609,353   6,117   4.01%      671,619   7,441   4.43%
assets
Non-interest-earning 8,825                       3,236             
assets
Total assets         $618,178                   $674,855         
                                                                  
Interest Bearing                                                   
Liabilities:
Deposits:                                                          
Now demand           $26,393  11      0.17%      $25,088  10      0.16%
Savings and clubs    99,807    66      0.26%      105,011   69      0.26%
Money market         109,341   194     0.70%      77,264    188     0.97%
Certificates of      212,516   627     1.17%      188,642   663     1.39%
deposit
Mortgagors deposits  1,839     8       1.73%      2,008     7       1.38%
Total deposits       449,896   906     0.80%      398,013   937     0.93%
Borrowed money       43,906    347     3.14%      98,364    827     3.34%
Total
interest-bearing     493,802   1,253   1.01%      496,377   1,764   1.41%
liabilities
Non-interest-bearing                                               
liabilities:
Demand               60,890                      96,605            
Other liabilities    8,266                       8,751             
Total liabilities    562,958                     601,733           
Stockholders' equity 55,220                      73,122            
Total liabilities &  $618,178                   $674,855         
stockholders' equity
Net interest income            $4,864                     $5,677 
                                                                  
Average interest                       3.00%                        3.02%
rate spread
                                                                  
Net interest margin                    3.19%                        3.38%
                                                                  
^(1) Includes                                                      
non-accrual loans
^(2) Includes                                                      
FHLB-NY stock


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
                                                                    
                    For the Six Months Ended September 30,
                    2012                            2011
$ in thousands       Average             Average    Average             Average
                    Balance    Interest  Yield/Cost Balance    Interest  Yield/Cost
                                                                    
Interest Earning                                                     
Assets:
Loans ^(1)           $422,185 $11,074 5.25%      $564,430 $13,660 4.84%
Mortgaged-backed     54,015    569      2.11%      50,835    739      2.91%
securities
Investment           49,925    332      1.33%      23,573    137      1.16%
securities
Restricted Cash      6,415     1        0.03%      6,215     1        0.03%
Deposit
Equity securities    2,546     46       3.60%      2,973     81       5.44%
^(2)
Other investments
and federal funds    82,736    246      0.59%      35,611    56       0.31%
sold
Total
interest-earning     617,822   12,268   3.97%      683,637   14,674   4.29%
assets
Non-interest-earning 7,558                        2,093              
assets
Total assets         $625,380                    $685,730          
                                                                    
Interest Bearing                                                     
Liabilities:
Deposits:                                                            
Now demand           $ 26,500  21       0.16%      $ 26,079  21       0.16%
Savings and clubs    100,552   133      0.26%      106,194   140      0.26%
Money market         109,335   397      0.72%      72,482    357      0.98%
Certificates of      216,364   1,312    1.21%      201,506   1,406    1.39%
deposit
Mortgagors deposits  2,147     19       1.75%      2,433     19       1.56%
Total deposits       454,898   1,882    0.83%      408,694   1,943    0.95%
Borrowed money       43,918    691      3.14%      105,400   1,776    3.36%
Total
interest-bearing     498,816   2,573    1.03%      514,094   3,719    1.44%
liabilities
Non-interest-bearing                                                 
liabilities:
Demand               63,033                       112,362            
Other liabilities    7,563                        8,018              
Total liabilities    569,412                      634,474            
Stockholders' equity 55,968                       51,256             
Total liabilities &  $625,380                    $685,730          
stockholders' equity
Net interest income            $9,695                      $10,955 
                                                                    
Average interest                        2.94%                         2.85%
rate spread
                                                                    
Net interest margin                     3.14%                         3.21%
                                                                    
^(1) Includes                                                        
non-accrual loans
^(2) Includes                                                        
FHLB-NY stock


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED SELECTED KEY RATIOS
                                                                
                                  Three Months Ended    Six Months Ended
                                  September 30,         September 30,
Selected Statistical Data:         2012       2011       2012       2011
                                                                
Return on average assets ^(1)      (0.09)%    (5.60)%    (0.16)%    (4.54)%
Return on average equity ^(2)      (0.99)%    (51.69)%   (1.78)%    (60.73)%
Net interest margin ^(3)           3.19%      3.60%      3.14%      3.39%
Interest rate spread ^(4)          3.00%      3.31%      2.94%      3.10%
Efficiency ratio ^(5)              94.41%     117.25%    103.49%    115.88%
Operating expenses to average      4.46%      4.52%      4.33%      4.35%
assets ^(6)
Average equity to average assets   8.93%      10.84%     8.95%      7.48%
^(7)
                                                                
Average interest-earning assets to
average interest-bearing           1.23 x    1.27 x    1.24 x    1.26 x
liabilities
                                                                
Net loss per share ^(*)            $(0.04)  $(58.67) $(0.14)  $(95.68)
Average shares outstanding ^ (*)   3,695,653 165,983   3,695,597 165,852
                                                                
                                  September 30,                   
                                  2012       2011                 
Capital Ratios:                                                  
Tier 1 leverage ratio ^(8)         9.91%      10.34%               
Tier I risk-based capital ratio    15.57%     13.98%               
^(8)
Total risk-based capital ratio     18.09%     16.26%               
^(8)
                                                                
                                                                
Asset Quality Ratios:                                            
Non performing assets to total     10.01%     17.49%               
assets ^(9)
Non performing loans to total      9.20%      16.14%               
loans receivable ^(9)
Allowance for loan losses to total 4.32%      4.38%                
loans receivable
Allowance for loan losses to       46.94%     27.15%               
non-performing loans
                                                                
^(1) Net loss, annualized,                                      
divided by average total assets.
^(2)Net loss, annualized, divided                               
by average total equity.
^(3)Net interest income,
annualized, divided by average                                   
interest-earning assets.
^(4) Combined weighted average
interest rate earned less combined                               
weighted average interest rate
cost.
^(5) Operating expenses divided
by sum of net interest income plus                               
non-interest income.
^(6)Non-interest expenses,
annualized, divided by average                                   
total assets.
^(7)Average equity divided by
average assets for the period                                    
ended.
^(8) These ratios reflect                                        
consolidated bank only.
^(9) Non performing assets consist
of non-accrual loans, and real                                   
estate owned.
^(*) Common stock shares reflect 1
for 15 reverse stock split which                                 
was effective on October 27, 2011.

CONTACT: Ruth Pachman/Michael Herley
         Kekst and Company
         (212) 521-4800
        
         Mark A. Ricca
         Carver Bancorp, Inc.
         (212) 360-8820