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

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

NEW YORK, Feb. 8, 2013 (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 third
fiscal quarter of 2013 ended December 31, 2012 ("Fiscal 2013").

The Company reported net income of $0.5 million or an earnings per share of
$0.13 for the third quarter of Fiscal 2013, compared to a net loss of $0.7
million or a loss per share of $0.26, for the prior year period. For the nine
months ended December 31, 2012, the Company reported a net loss of $26
thousand or a loss per share of $0.01, compared to a net loss of $16.3 million
or a loss per share of $16.81 for the prior year period.

Deborah C. Wright, Carver Bancorp Chairman and CEO said, "We are pleased to
report our first quarterly profit since our real estate loan portfolio was
severely impacted by the economic downturn. Our positive net income results
for the quarter bring Carver's year-to-date results close to break-even. Our
loan performance also continued to improve, with non-performing assets
declining 5% from the prior quarter and 30% year-to-date.While we have made
tremendous progress, additional work still needs to be done to strengthen our
loan portfolio.

Ms. Wright added: "We are also encouraged by the ongoing growth and market
opportunity for Carver Community Cash. This product line, which was designed
to meet the needs of the "unbanked" in our communities, helped contribute to
record depository fees and charges for the quarter, which reached nearly $1
million. As we continue to add more services, such as our CashAccess kiosk, a
self-service option, we are optimistic that revenues from this product line
will continue to grow. Last, our recently announced executive management team
expansion and realignment, positions us to further strengthen our new business
platform and sets the stage for fiscal 2014 and beyond."

Statement of Operations Highlights

Third Quarter Results

The Company reported net income for the three months ended December31, 2012
of $0.5 million compared to a net loss of $0.7 million for the prior year
period. The primary drivers of the net income versus the loss in the prior
year period were gains on sales of loans held for sale ("HFS") and a negative
loan loss provision in the current quarter versus a build in the prior year.

Net Interest Income

Interest income decreased $1.0 million, or 14.2%, to $5.9 million in the third
quarter, compared to the prior year quarter, with the decrease primarily
attributed to a $102.5 million, or 20.2%, decrease in average loans. Although
the average yield on loans increased 20 basis points to 5.26% from 5.06%, the
decrease in average loans reduced total interest income on loans. These
conditions will likely continue until average loan balances increase, given
lower yields available on alternative earning assets. The average yield on
mortgage-backed securities fell 66 basis points to 1.86% from 2.52% during the
quarter, as higher yielding securities experienced early payoffs and were
replaced with lower yielding securities.

Interest expense decreased $0.7 million, or 34.7%, to $1.2 million for the
third quarter, compared to $1.9 million for the prior year quarter, as lower
cost deposits replaced borrowings. The average rate on interest bearing
liabilities decreased 49 basis points to 0.99% for the quarter ended December
31, 2012.

Provision for Loan Losses

The Company recorded a $0.4 million release of loan loss reserves for the
third quarter compared to a $0.1 million provision for the prior year quarter.
Net charge-offs of $1.5 million were recognized compared to $1.1 million in
the prior year period.Charge-offs to the provision, in both quarters, were
primarily related to impaired loans and loans moved to HFS. The impact of the
charge-offs to the provision was partially offset by a reduction in the
allowance for loan losses following reductions in loss experience and, to a
lesser extent, a decline in loan balances.

Non-interest Income

Non-interest income increased $1.9 million, or 359.5%, to $2.5 million for the
third quarter, compared to $0.6 million for the prior year quarter. The
increase was primarily due to $1.1 million gains on sale of HFS loans and $60
thousand in capital gains on the Company's investment portfolio. Non-interest
income in the prior period was impacted by HFS valuation adjustments of $0.5
million.

Non-interest Expense

Non-interest expense decreased $0.5 million to $7.3 million during the third
quarter, compared to $7.8 million in the prior year quarter. Non-interest
expense was lower in all categories except data processing with the largest
decreases comprised of $0.2 million in compensation expenses and $0.1 million
in consulting fees.

Income Taxes

The income tax expense was $68 thousand for the third quarter compared to a
benefit of $1.0 million in the prior year period.

Nine Month Results

The Company reported a net loss for the nine months ended December31, 2012 of
$26 thousand compared to a net loss of $16.3 million for the prior year
period. This improvement was primarily driven by 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 $3.4 million, or 15.7%, to $18.2 million in the nine
month period, compared to the prior year period, with the decrease primarily
attributed to a $129.0 million, or 23.7%, decrease in average loans. The
average yield on loans increased 34 basis points to 5.25% from 4.91%, which
was directly related to a reduction in non-performing loans. The decline in
average loan balances did, however, decrease total interest income on loans.
The average yield on mortgage-backed securities fell 76 basis points to 2.03%
from 2.79% during the prior year period, as higher yielding securities
experienced early payoffs and were replaced with lower yielding securities.

Interest expense decreased $1.8 million, or 32.1%, to $3.8 million for the
nine month period, compared to $5.6 million for the prior year period, as
lower cost deposits replaced more expensive long-term borrowings. The average
rate on interest bearing liabilities decreased 41 basis points to 1.02% for
the nine months ended December31, 2012.

Provision for Loan Losses

The Company recorded a $0.4 million provision for loan losses for the nine
month period, compared to $12.3 million for the prior year period. For the
nine months ended December31, 2012 net charge-offs of $5.7 million were
recognized compared to $15.0 million in the prior year period. Charge-offs in
both periods were primarily related to impaired loans and loans that moved to
HFS.

Non-interest Income

Non-interest income increased $3.4 million, or 139.2%, to $5.9 million for the
nine month period, compared to $2.5 million for the prior year period.The
majority of the increase was attributable to gains on sales of loans, fee
income received from a New Market Tax Credit ("NMTC") transaction and an
increase in depository fees. Non-interest income in the prior year period was
impacted by HFS valuation adjustments of $0.9 million.

Non-interest Expense

Non-interest expense decreased $1.9 million to $20.8 million, or 8.4% compared
to $22.7 million in the prior year period. Non-interest expense was lower in
all categories except data processing, with the largest decreases comprised of
$0.9 million in compensation expenses and a decline of $0.2 million in FDIC
premiums.

Income Taxes

The income tax expense was $264 thousand for the nine month period compared to
a benefit of $927 thousand for the prior year period.

Financial Condition Highlights

At December31, 2012, total assets decreased $0.6 million, or 0.09%, to $640.6
million, compared to $641.2 million at March31, 2012.The overall change was
primarily due to decreases in the loan portfolio of $48.4 million, the
allowance for loan losses of $5.3 million and HFS loans of $10.6 million.
These decreases were offset by increases in cash and cash equivalents of $30.2
million and $23.3 million in the investment portfolio.

Total securities increased $23.3 million, or 24.2%, to $119.5 million at
December31, 2012, compared to $96.2 million at March31, 2012. This change
reflects an increase of $24.8 million in available-for-sale securities offset
by a $1.5 million decrease in held-to-maturity securities, as the Company
continues to diversify its investment portfolio to increase interest earning
assets.

Total loans receivable decreased $48.4 million, or 11.72%, to $364.5 million
at December31, 2012, compared to $412.9 million at March31, 2012. The
decrease resulted from$50.0 million of principal repayments and loan payoffs
across all loan classifications comprised the majority of the decrease, with
the largest declines in multi-family, commercial and construction loans. An
additional $9.1 million in loans were transferred from held for investment to
HFS and $5.7 million in principal charge offs.Decreases were partially offset
by loan originations and advances of $17.4 million. The decrease of $5.3
million in the allowance for loan losses is due to stabilization in valuations
of the non performing loans and the decrease in loan balances.

HFS loans decreased $10.6 million or 35.9% to $19.0 million as the Company
continued to take aggressive steps to resolve troubled loans. During the year,
$9.1 million in loans, net of charge-offs, transferred into the held for sale
portfolio from the held for investment portfolio. This increase was offset by
$19.7 million of sales and paydowns.

Total liabilities increased $0.4 million, or 0.07%, to $585.0 million at
December31, 2012, compared to $584.6 million at March31, 2012, due to an
increase in borrowings of $30.0 million and an increase in other liabilities
of $1.4 million partiallyoffset by reductions in deposits of $30.9 million.

Deposits decreased $30.9 million, or 5.81%, to $501.6 million at December31,
2012, compared to $532.6 million at March31, 2012, due principally to $10
million of planned withdrawals from non-interest bearing control disbursements
accounts and management's decision to release higher cost certificates of
deposit.

Advances from the Federal Home Loan Bank of New York ("FHLB-NY") and other
borrowed money increased $30.0 million, or 69.02%, to $73.4 million at
December31, 2012, compared to $43.4 million at March31, 2012, as the Company
added short-term borrowings during the nine month period to replace previously
terminated long-term borrowings.

Total equity decreased $1.0 million, or 1.80%, to $55.6 million at
December31, 2012, compared to $56.6 million at March31, 2012. The decline
reflects a net loss before taxes of $0.9 million (excluding non-controlling
interest).

Asset Quality

At December31, 2012, non-performing assets totaled $57.6 million, or 8.98% of
total assets, compared to $86.4 million or 13.47% of total assets at March31,
2012, and $93.9 million or 14.01% of total assets at December31, 2011.
Non-performing assets at December31, 2012 were comprised of $12.0 million of
loans 90 days or more past due and non-accruing, $18.0 million of loans
classified as a troubled debt restructuring, $5.6 million of loans that are
either performing or less than 90 days past due that have been classified as
impaired, $3.0 million of Real Estate Owned, and $19.0 million of loans
classified as HFS.

The allowance for loan losses was $14.5 million at December31, 2012, which
represents a ratio of the allowance for loan losses to non-performing loans of
40.72% compared to 36.31% at March31, 2012. The ratio of the allowance for
loan losses to total loans was 3.97% at December31, 2012, a decline from
4.80% 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
                                                                  
$ in thousands except per share data                   December 31, March 31,
                                                      2012         2012
ASSETS                                                             
Cash and cash equivalents:                                         
Cash and due from banks                                $114,292   $89,872
Money market investments                               7,558       1,825
Total cash and cash equivalents                        121,850     91,697
Restricted cash                                        6,416       6,415
Investment securities:                                             
Available-for-sale, at fair value                      109,936     85,106
Held-to-maturity, at amortized cost(fair value
of$10,191 and $11,774 at December 31, 2012 and March  9,565       11,081
31, 2012, respectively)
Total investments                                      119,501     96,187
                                                                  
Loans held-for-sale ("HFS")                            18,991      29,626
                                                                  
Loans receivable:                                                  
Real estate mortgage loans                             330,655     367,611
Commercial business loans                              33,535      43,989
Consumer loans                                         264         1,258
Loans, net                                             364,454     412,858
Allowance for loan losses                              (14,483)    (19,821)
Total loans receivable, net                            349,971     393,037
Premises and equipment, net                            8,885       9,573
Federal Home Loan Bank of New York ("FHLB-NY") stock,  3,368       2,168
at cost
Accrued interest receivable                            2,359       2,256
Other assets                                           9,297       10,271
Total assets                                           $640,638   $641,230
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                               
LIABILITIES:                                                       
Deposits:                                                          
Savings                                                96,226      101,079
Non-Interest Bearing Checking                          61,676      67,202
NOW                                                    25,044      28,325
Money Market                                           113,417     109,404
Certificates of Deposit                                205,286     226,587
Total Deposits                                         501,649     532,597
Advances from the FHLB-New York and other borrowed     73,403      43,429
money
Other liabilities                                      9,986       8,585
Total liabilities                                      585,038     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 December 31, 2012 and
March 31, 2012, respectively)
Additional paid-in capital                             55,574      54,068
Accumulated deficit                                    (45,125)    (45,091)
Non-controlling interest                               95          2,751
Treasury stock, at cost (1,944 shares at December 31,  (417)       (447)
2012 and 2,090 and March 31, 2012, respectively).
Accumulated other comprehensive loss                   294         159
Total stockholders' equity                             55,600      56,619
Total liabilities and stockholders equity              $640,638   $641,230


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                               
                                     Three Months Ended Nine Months Ended
$ in thousands except per share data  December 31,       December 31,
                                     2012     2011      2012      2011
Interest Income:                                                
Loans                                 $5,325 $6,416  $ 16,398 $ 20,076
Mortgage-backed securities            215     279      783      1,018
Investment securities                 349     114      857      340
Money market investments              38      102      156      151
Total interest income                 5,927   6,911    18,194   21,585
                                                               
Interest expense:                                               
Deposits                              868     1,069    2,750    3,012
Advances and other borrowed money     342     785      1,033    2,560
Total interest expense                1,210   1,854    3,783    5,572
                                                               
Net interest income                   4,717   5,057    14,411   16,013
Provision for loan losses             (398)   113      386      12,290
Net interest income after provision   5,115   4,944    14,025   3,723
for loan losses
                                                               
Non-interest income:                                            
Depository fees and charges           964     740      2,652    2,212
Loan fees and service charges         170     203      565      689
Gain on sale of securities, net       60      —        60       —
Gain on sales of loans, net           1,109   19       1,714    154
Loss on real estate owned             —       (91)     (288)    (216)
New Market Tax Credit ("NMTC") fees   —       —        625      —
Lower of Cost or market adjustment on —       (530)    —        (905)
loans held for sale
Other                                 238     212      587      539
Total non-interest income             2,541   553      5,915    2,473
                                                               
Non-interest expense:                                           
Employee compensation and benefits    2,819   3,006    8,243    9,188
Net occupancy expense                 910     903      2,684    2,805
Equipment, net                        314     329      889      1,029
Data processing                       326     216      842      596
Consulting fees                       63      165      243      370
Federal deposit insurance premiums    320     369      994      1,177
Other                                 2,552   2,788    6,933    7,531
Total non-interest expense            7,304   7,776    20,828   22,696
                                                               
Profit/(Loss) before income taxes     352     (2,279)  (888)    (16,500)
Income tax expense (benefit)          68      (1,004)  264      (927)
Net income/(loss) before attribution  284     (1,275)  (1,152)  (15,573)
of noncontrolling interest
Non Controlling interest, net of      (190)   (595)    (1,126)  687
taxes
Net income/(loss)                     $474   $(680)  $(26)   $ (16,260)
                                                               
Earnings/(loss) per common share:                               
Basic                                 $0.13  $(0.26) $(0.01) $(16.81)
Diluted                               $0.13  N/A       N/A       N/A
                                                               

CARVER BANCORP, INC. AND SUBSIDIARIES
Non Performing Asset Table

                                                            
$ in thousands December2012 September2012 June2012 March2012 December2011
Loans
accounted for
on a                                                         
non-accrual
basis ^ (1):
Gross loans                                                  
receivable:
One- to-four   $7,249      $6,094       $7,363  $6,988   $12,863
family
Multi-family   483          1,724         1,790    2,923     2,619
Commercial     18,872       14,145        16,487   24,467    26,313
real estate
Construction   1,230        4,258         4,658    11,325    17,651
Business       7,718        8,717         9,337    8,862     9,825
Consumer       14           15            —        23        4
Total
non-performing $35,566     $34,953      $ 39,635 $ 54,588  $69,275
loans
                                                            
                                                            
Other
non-performing                                               
assets ^(2):
Real estate    $2,996      $2,119       $1,961  $2,183   $2,183
owned
Loans held for 18,991       26,830        30,163   29,626    22,490
sale
Total other
non-performing 21,987       28,949        32,124   31,809    24,673
assets
Total
non-performing $57,553     $63,902      $ 71,759 $ 86,397  $93,948
assets ^ (3):
                                                            
                                                            
Non-performing
loans to total 9.76 %        9.20 %         10.17 %   13.22 %    15.12 %
loans
Non-performing
assets to      8.98 %        10.01 %        11.13 %   13.47 %    14.01 %
total 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 contractual
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. TDR loans that have performed in
accordance with their modified terms for a period of at least six months 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 December 31,
                    2012                           2011
$ in thousands       Average            Average    Average           Average
                    Balance    Interest Yield/Cost Balance   Interest Yield/Cost
                                                                 
Interest Earning                                                  
Assets:
Loans ^(1)           $404,613 $5,325 5.26 %     $        $6,416 5.06 %
                                                    507,153
Mortgaged-backed     46,251    215     1.86 %     44,246   279     2.52 %
securities
Investment           73,392    267     1.46 %     24,169   81      1.33 %
securities
Restricted Cash      6,415     —       0.03 %     6,397    —       0.03 %
Deposit
Equity securities    2,545     23      3.60 %     2,655    30      4.42 %
^(2)
Other investments
and federal funds    66,899    97      0.58 %     63,309   105     0.66 %
sold
Total
interest-earning     600,115   5,927   3.95 %     647,929  6,911   4.27 %
assets
Non-interest-earning 9,273                       6,921            
assets
Total assets         $609,388                   $                
                                                    654,850
                                                                 
Interest Bearing                                                  
Liabilities:
Deposits:                                                         
Now demand           $25,054  10      0.16 %     $27,191 11      0.16 %
Savings and clubs    97,391    64      0.26 %     102,960  68      0.26 %
Money market         112,044   201     0.71 %     83,690   251     1.19 %
Certificates of      204,609   582     1.13 %     193,358  728     1.49 %
deposit
Mortgagors deposits  2,282     11      1.92 %     2,309    11      1.89 %
Total deposits       441,380   868     0.78 %     409,508  1,069   1.04 %
Borrowed money       43,737    342     3.11 %     88,679   785     3.51 %
Total
interest-bearing     485,117   1,210   0.99 %     498,187  1,854   1.48 %
liabilities
Non-interest-bearing                                              
liabilities:
Demand               60,117                      84,585           
Other liabilities    9,329                       8,449            
Total liabilities    554,563                     591,221          
Stockholders' equity 54,825                      63,629           
Total liabilities &  $609,388                   $                
stockholders' equity                                654,850
Net interest income            $4,717                    $5,057 
                                                                 
Average interest                       2.96 %                      2.79 %
rate spread
                                                                 
Net interest margin                    3.14 %                      3.12 %
                                                                 
^(1) Includes                                                     
non-accrual loans
^(2) Includes                                                     
FHLB-NY stock



CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
                                                                    
                                                                    
                    For the Nine Months Ended December 31,
                    2012                            2011
$ in thousands       Average             Average    Average             Average
                    Balance    Interest  Yield/Cost Balance    Interest  Yield/Cost
                                                                    
Interest Earning                                                     
Assets:
Loans ^ (1)          $416,306 $16,398 5.25 %     $545,267 $20,076 4.91 %
Mortgaged-backed     51,418    783      2.03 %     48,631    1,018    2.79 %
securities
Investment           57,776    599      1.38 %     23,773    218      1.22 %
securities
Restricted Cash      6,415     1        0.03 %     6,969     2        0.03 %
Deposit
Equity securities ^  2,545     70       3.64 %     2,867     111      5.14 %
(2)
Other investments
and federal funds    77,438    343      0.59 %     44,877    160      0.47 %
sold
Total
interest-earning     611,898   18,194   3.96 %     672,384   21,585   4.28 %
assets
Non-interest-earning 8,139                        3,015              
assets
Total assets         $620,037                    $675,399          
                                                                    
Interest Bearing                                                     
Liabilities:
Deposits:                                                            
Now demand           $26,016  31       0.16 %     $26,451  32       0.16 %
Savings and clubs    99,495    197      0.26 %     105,112   208      0.26 %
Money market         110,241   598      0.72 %     76,232    608      1.06 %
Certificates of      212,432   1,894    1.19 %     198,780   2,135    1.43 %
deposit
Mortgagors deposits  2,193     30       1.82 %     2,392     30       1.66 %
Total deposits       450,377   2,750    0.81 %     408,967   3,013    0.98 %
Borrowed money       43,857    1,033    3.13 %     99,806    2,561    3.41 %
Total
interest-bearing     494,234   3,783    1.02 %     508,773   5,574    1.45 %
liabilities
Non-interest-bearing                                                 
liabilities:
Demand               62,057                       103,069            
Other liabilities    8,160                        8,162              
Total liabilities    564,451                      620,004            
Stockholders' equity 55,586                       55,395             
Total liabilities &  $620,037                    $675,399          
stockholders' equity
Net interest income            $14,411                      $16,011  
                                                                    
Average interest                        2.94 %                        2.83 %
rate spread
                                                                    
Net interest margin                     3.14 %                        3.18 %
                                                                    
^(1) Includes                                                        
non-accrual loans
^(2) Includes                                                        
FHLB-NY stock

CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED SELECTED KEY RATIOS
                                                                
                                                                
                                 Three Months Ended    Nine Months Ended
                                 December 31,          December 31,
Selected Statistical Data:        2012       2011       2012        2011
                                                                
Return on average assets ^(1)     0.31 %     (0.42)%    (0.01)%     (4.81)%
Return on average equity ^ (2)    3.46 %     (4.27)%    (0.14)%     (58.71)%
Net interest margin ^(3)          3.14 %     3.12 %     3.14 %      3.19 %
Interest rate spread ^ (4)        2.96 %     2.79 %     2.94 %      2.83 %
Efficiency ratio ^ (5)            100.63 %   138.60 %   102.47 %    122.77 %
Operating expenses to average     4.79 %     4.75 %     10.08 %     6.72 %
assets ^(6)
Average equity to average assets  9.00 %     9.72 %     8.96 %      8.20 %
^(7)
                                                                
Average interest-earning assets
to average interest-bearing       1.24      1.17      1.24       1.23
liabilities
                                                                
Net income (loss) per share ^(*)  $0.13    $(0.26)  $(0.01)   $(16.81)
Average shares outstanding ^ (*)  3,695,653 2,621,340 3,695,616 984,348
                                                                
                                 December 31,                     
                                 2012       2011                  
Capital Ratios:                                                  
Tier 1 leverage ratio ^(8)        10.06 %    10.30 %               
Tier 1 risk-based capital ratio   16.56 %    14.76 %               
^(8)
Total risk-based capital ratio ^  19.13 %    17.11 %               
(8)
                                                                
Asset Quality Ratios:                                            
Non performing assets to total    8.98 %     14.01 %               
assets ^(9)
Non performing loans to total     9.76 %     15.12 %               
loans receivable ^(9)
Allowance for loan losses to      3.97 %     4.45 %                
total loans receivable
Allowance for loan losses to      40.72 %    29.46 %               
non-performing loans
                                                                
^(1) Net income (loss),
annualized, divided by average                                   
total assets.
^(2) Net income (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
        
         David L. Toner
         Carver Bancorp, Inc.
         (718) 676-8936
 
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