Carver Bancorp, Inc. Reports Fiscal Year 2013 and Fourth Quarter Results

Carver Bancorp, Inc. Reports Fiscal Year 2013 and Fourth Quarter Results

NEW YORK, June 13, 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 fourth
quarter and fiscal year ended March 31, 2013 ("Fiscal 2013").

The Company reported net income of $0.7 million or earnings per share of $0.19
for the fourth quarter of fiscal year 2013, compared to a net loss of $7.1
million or loss per share of $1.93, for the prior year period. The Company
reported net income of $0.7 million or earnings per share of $0.18 for fiscal
year 2013, compared to a net loss of $23.4 million, or loss per share of
$14.26 for fiscal year 2012.

Deborah C. Wright, Carver Bancorp Chairman and CEO said: "We are pleased to
reportour second consecutive quarterly profit and our first annual profit
since the recession severely impacted our real estate loan portfolio. Our loan
performance continues to improve, with non-performing assets declining 20%
from the prior quarter and 47% from the fourth quarter of fiscal year 2012.
Our capital ratios remain strong, with a Tier 1 capital ratio of 10.26% and a
Total Risk Based Capital ratio of 19.55% as of March 31, 2013.

"Our leadership team has been strengthened in all critical areas, and we are
now refocusing on accelerating new business development, led by the
partnership between our Retail and Lending Departments. Throughout this fiscal
year, we have strengthened underwriting and compliance standards to ensure
appropriate oversight in a challenging regulatory and fiscal environment. We
are also pleased with initial results and the longer term business opportunity
of Carver Community Cash, our product line designed to meet the needs of the
'unbanked' in our communities. This product line is relevant to our consumer
and institutional depository and lending customers, and we look forward to
reaching additional customers who may benefit from a long-term banking
relationship."

Ms. Wright concluded, "It remains a challenging time for customers in
significant portions of Carver's footprint, and in the community banking
industry. However, we remain guardedly optimistic for the fiscal year ahead."

Statement of Operations Highlights

Fourth Quarter Results

The Company reported net income for the three months ended March 31, 2013 of
$0.7 million compared to a net loss of $7.1 million for the prior year period.
The primary driver of our net income improvement over the prior year period
loss was a loan loss provision release in the current quarter versus an
increase in the prior year.

Net Interest Income

Interest income decreased $0.8 million, or 12.0%, to $5.6 million in the
fourth quarter, compared to the prior year quarter, with the decrease
primarily attributable to an $88.4 million, or 18.9%, decrease in average
loans. Although the average yield on loans increased 27 basis points to 5.28%
from 5.01%, due to a reduction in non-performing loans, the decrease in
average loans reduced total interest income on loans. Decreases in interest
income are likely to continue until average loan balances increase, given
lower yields available on alternative interest earning assets.The average
yield on mortgage-backed securities fell 91 basis points to 1.51% from 2.42%
during the quarter, as higher yielding securities experienced early payoffs
and were replaced with lower yielding securities.

Interest expense decreased $1.4 million, or 55.9%, to $1.1 million for the
fourth quarter, compared to $2.5 million for the prior year quarter, on lower
rates paid on money market accounts and certificates of deposits.Interest
expense in the prior year period was also higher due to prepayment fees
incurred as the Company made the strategic decision to prepay $30 million of
repurchase agreements and $10 million of fixed rate borrowings.As a result,
the average rate on interest-bearing liabilities decreased 44 basis points to
0.92% for the quarter ended March 31, 2013.

Provision for Loan Losses

The Company recorded a $3.7 million negative provision for loan losses for the
fourth quarter compared to a $4.1 million provision for the prior year
quarter.For the three months ended March 31, 2013, net recoveries of$0.2
million were recognized, compared to net charge-offs of $4.6 million in the
prior year period.Improvement in the provision for loan losses was primarily
related toreductions in loss experience and, to a lesser extent, a decline in
loan balances.

Non-interest Income

Non-interest income decreased $0.1 million, or 4.0%, to $1.1 million in the
fourth quarter, compared to $1.2 million for the prior year quarter.The
decrease was primarily due to a loss on real estate owned, offset by increases
in the gains realized on the sale of held-for-sale ("HFS") loans, and capital
gains on the Company's investment portfolio.Non-interest income in the prior
year period was also positively impacted by $0.6 million in new markets tax
credit (NMTC) fees offset by HFS valuation adjustments of $1.0 million.

Non-interest Expense

Non-interest expense increased $0.2 million to $8.4 million during the fourth
quarter, compared to $8.2 million in the prior year quarter.The increase is
primarily due to an increase in occupancy and data processing expenses, offset
by lower FDIC insurance premiums.

Income Taxes

The income tax expense was $64 thousand for the fourth quarter compared to a
benefit of $34 thousand in the prior year period.

Fiscal Year 2013 Results

The Company reported net income for fiscal 2013 of $0.7 million compared to a
net loss of $23.4 million for the prior year period.This improvement was
primarily driven by a release in the provision for loan losses in the current
year versus a build in the prior year, and increases in non-interest
income.

Net Interest Income

Interest income decreased $4.2 million, or 14.9%, to $23.8 million compared to
$27.9 million in the prior year period, with the decrease primarily attributed
to a $118.8 million, or 22.6%, decrease in average loans.The average yield on
loans increased 33 basis points to 5.26% from 4.93%, 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 80 basis points to 1.90% from 2.70%
in the prior year period, as higher yielding securities experienced early
payoffs and were replaced with lower yielding securities.

Interest expense decreased $3.2 million, or 39.4%, to $4.9 million compared to
$8.1 million in the prior year period, as lower cost deposits replaced more
expensive long-term borrowings.The prior year period was also impacted by
fees paid to prepay certain high coupon debt.The average rate on
interest-bearing liabilities decreased 44 basis points to 0.99%.

Provision for Loan Losses

The Company recorded a $3.3 million negative provision for loan losses for the
fiscal year compared to a $16.3 million provision for the prior year
period.For the period ended March31, 2013, net charge-offs of $5.5 million
were recognized compared to $19.7 million in the prior year
period.Charge-offs in both periods were primarily related to impaired loans
and loans that moved to HFS.The negative provision of $3.3 million recorded
in the current period is primarily related to the stabilization in valuations
of non-performing loans and a decrease in loss experience.

Non-interest Income

Non-interest income increased $3.3 million, or 92.9%, to $7.0 million compared
to $3.7 million for the prior year period.The majority of the increase was
attributable to gains on sales of loans and an increase in depository
fees.Non-interest income in the prior year period was negatively impacted by
HFS valuation adjustments of $1.9 million.

Non-interest Expense

Non-interest expense decreased $1.7 million or 5.5% to $29.2 million compared
to $30.9 million in the prior year period.Non-interest expense was lower in
all categories except data processing, with the largest decreases comprised of
$1.0 million in compensation and benefits expenses and $0.3 million in FDIC
premiums.

Income Taxes

Income tax expense was $0.3 million for the fiscal year, compared to a benefit
of $1.0 million, for the prior year period.The income tax benefit in the
prior year period was primarily due to net operating loss carrybacks,
following management's evaluation of the Company's tax position.

Financial Condition Highlights

At March31, 2013, total assets decreased $3.0 million, or 0.5%, to $638.3
million, compared to $641.2 million at March31, 2012. The overall change
was primarily due to decreases in the loan portfolio net of the allowance for
loan losses of $33.9 million and HFS loans of $16.5 million.These decreases
were offset by increases in cash and cash equivalents and restricted cash of
$17.2 million and $28.9 million in the investment portfolio.

Total securities increased $28.9 million, or 30.1%, to $125.1 million at
March31, 2013, compared to $96.2 million at March31, 2012.This change
reflects an increase of $30.9 million in available-for-sale securities offset
by a $2.0 million decrease in held-to-maturity securities, as the Company
continues to diversify its investment portfolio to increase interest-earning
assets.

Net loans receivable decreased $42.8 million, or 10.4%, to $370.1 million at
March31, 2013, compared to $412.9 million at March31, 2012.The decrease
resulted from$73.8 million of principal repayments and loan payoffs across
all loan classifications, with the largest declines in multi-family,
commercial and construction loans.An additional $9.7 million in loans were
transferred from held for investment to HFS and $6.3 million in principal
charge-offs.Decreases were partially offset by loan originations, advances
and purchases of $46.9 million.The decrease of $8.8 million in the allowance
for loan losses is due to $5.5 million in charge offs in addition to a
negative provision of $3.3 million which is primarily related to the
stabilization in valuations of non-performing loans and a decrease in loss
experience.

HFS loans decreased $16.5 million or 55.8% to $13.1 million as the Company
continued to take aggressive steps to resolve troubled loans.During the
fiscal year, $9.7 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 $25.9 million of sales and paydowns.

Total liabilities decreased $3.1 million, or 0.5%, to $581.5 million at
March31, 2013, compared to $584.6 million at March31, 2012, due to
reductions in deposits of $36.9 million partially offset by an increase in
borrowings of $33.0 million.

Deposits decreased $36.9 million, or 6.9%, to $495.7 million at March31,
2013, compared to $532.6 million at March31, 2012, due principally to $10
million in planned withdrawals from non-interest bearing control disbursements
accounts and management's decision not to renew higher cost certificates of
deposit.

Advances from the Federal Home Loan Bank of New York ("FHLB-NY") and other
borrowed money increased $33.0 million, or 75.9%, to $76.4 million at
March31, 2013, compared to $43.4 million at March31, 2012, as the Company
added short-term borrowings during the fiscal year to replace previously
terminated long-term borrowings.

Total equity increased $0.1 million, or 0.2%, to $56.7 million at March31,
2013, compared to $56.6 million at March31, 2012.The increase reflects net
profit before taxes of $45 thousand for the fiscal year.

Asset Quality

At March31, 2013, non-performing assets totaled $46.1 million, or 7.2% of
total assets, compared to $57.6 million or 9.0% of total assets at December
31, 2012 and $86.4 million or 13.5% of total assets at March31,
2012.Non-performing assets at March31, 2013 were comprised of $9.1 million
of loans 90 days or more past due and non-accruing, $16.7 million of loans
classified as a troubled debt restructuring, $4.9 million of loans that are
either performing or less than 90 days past due that have been classified as
impaired, $2.4 million of Real Estate Owned, and $13.1 million of loans
classified as HFS.

The allowance for loan losses was $11.0 million at March31, 2013, which
represents a ratio of the allowance for loan losses to non-performing loans of
35.9% compared to 36.3% at March31, 2012. The ratio of the allowance for loan
losses to total loans was 3.0% at March31, 2013, 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 ten
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                     March 31,  March 31,
ASSETS                                                   2013       2012
Cash and cash equivalents:                                         
Cash and due from banks                                  $98,083  $89,872
Money market investments                                 6,563     1,825
Total cash and cash equivalents                          104,646   91,697
Restricted Cash                                          10,666    6,415
Investment securities:                                             
Available-for-sale, at fair value                        116,051   85,106
Held-to-maturity, at amortized cost(fair value
of$9,629 and $11,774 at March 31, 2013 and March 31,    9,043     11,081
2012, respectively)
Total investments                                        125,094   96,187
                                                                  
Loans held-for-sale ("HFS")                              13,107    29,626
                                                                  
Loans receivable:                                                  
Real estate mortgage loans                               334,594   367,611
Commercial business loans                                35,281    43,989
Consumer loans                                           247       1,258
Loans, net                                              370,122   412,858
Allowance for loan losses                                (10,989)  (19,821)
Total loans receivable, net                              359,133   393,037
Premises and equipment, net                              8,597     9,573
Federal Home Loan Bank of New York ("FHLB-NY") stock, at 3,503     2,168
cost
Accrued interest receivable                              2,247     2,256
Other assets                                             11,284    10,271
Total assets                                             $638,277 $641,230
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                               
LIABILITIES:                                                       
Deposits:                                                          
Savings                                                  98,066    101,079
Non-Interest Bearing Checking                            58,239    67,202
NOW                                                      25,927    28,325
Money Market                                             113,259   109,404
Certificates of Deposit                                  200,225   226,587
Total Deposits                                           495,716   532,597
Advances from the FHLB-New York and other borrowed money 76,403    43,429
Other liabilities                                        9,423     8,585
Total liabilities                                        581,542   584,611
                                                                  
Stockholders' equity:                                              
Preferred stock, (par value $0.01, per share), 45,118
Series D shares, with a liquidation preference of $1,000 45,118    45,118
per share, issued and outstanding
Common stock (par value $0.01 per share: 10,000,000
shares authorized; 3,697,364 and 3,697,264 shares        61        61
issued; 3,695,420 and 3,695,174 shares outstanding at
March 31, 2013 and March 31, 2012, respectively)
Additional paid-in capital                               55,708    54,068
Accumulated deficit                                      (44,439)  (45,091)
Non-controlling interest                                 141       2,751
Treasury stock, at cost (1,944 shares at March 31, 2013  (417)     (447)
and 2,090 at March 31, 2012, respectively)
Accumulated other comprehensive income                   563       159
Total stockholders' equity                               56,735    56,619
Total liabilities and stockholders' equity               $638,277 $641,230


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                               
                                    Three Months Ended  Fiscal Year Ended
$ in thousands except per share data March 31,           March 31,
                                    2013     2012       2013    2012
Interest Income:                                                
Loans                                $4,999 $5,854   $21,398 $25,930
Mortgage-backed securities           187     284       971      1,302
Investment securities                355     149       1,211    489
Money market investments             49      64        205      215
Total interest income                5,590   6,351     23,785   27,936
                                                               
Interest expense:                                               
Deposits                             758     1,011     3,508    4,023
Advances and other borrowed money    336     1,470     1,370    4,030
Total interest expense               1,094   2,481     4,878    8,053
                                                               
Net interest income                  4,496   3,870     18,907   19,883
Provision for loan losses            (3,713) 4,052     (3,327)  16,342
Net interest income after provision  8,209   (182)     22,234   3,541
for loan losses
                                                               
Non-interest income:                                            
Depository fees and charges          828     778       3,480    2,990
Loan fees and service charges        127     206       693      895
Gain on sale of securities, net      114     —         174      —
Gain on sale of loans, net           537     103       2,250    257
Loss on real estate owned            (520)   —         (808)    (216)
New Market Tax Credit ("NMTC") fees  —       625       625      625
Lower of Cost or market adjustment   (32)    (965)     (32)     (1,870)
on loans held for sale
Other                                80      434       667      973
Total non-interest income            1,134   1,181     7,049    3,654
                                                               
Non-interest expense:                                           
Employee compensation and benefits   2,883   2,899     11,126   12,087
Net occupancy expense                941     887       3,625    3,692
Equipment, net                       295     312       1,184    1,341
Data processing                      335     165       1,176    761
Consulting fees                      114     106       357      475
Federal deposit insurance premiums   254     354       1,248    1,531
Other                                3,589   3,516     10,522   11,047
Total non-interest expense           8,411   8,239     29,238   30,934
                                                               
Profit/(Loss) before income taxes    932     (7,240)   45       (23,739)
Income tax expense (benefit)        64      (34)      328      (961)
Net income/(loss) before attribution 868     (7,206)   (283)    (22,778)
of noncontrolling interest
Non Controlling interest, net of     181     (58)      (945)    629
taxes
Net income/(loss)                    $687   $(7,148) $662    $(23,407)
                                                               
Earnings/(loss) per common share:                               
Basic                                $0.19  $(1.93)  $0.18   $(14.26)
Diluted                              $0.19  N/A        $0.18   N/A


CARVER BANCORP, INC. AND SUBSIDIARIES
Non Performing Asset Table
                                                               
$ in thousands   March 2013  December2012 September2012 June2012 March2012
Loans accounted
for on a                                                        
non-accrual
basis ^(1):
Gross loans                                                     
receivable:
One-to-four      $7,642    $7,249      $6,094       $7,363  $6,988
family
Multi-family     423        483          1,724         1,790    2,923
Commercial real  14,788     18,872       14,145        16,487   24,467
estate
Construction     1,230      1,230        4,258         4,658    11,325
Business         6,505      7,718        8,717         9,337    8,862
Consumer         38         14           15            —        23
Total
non-performing   $30,626   $35,566     $34,953      $ 39,635 $ 54,588
loans
                                                               
                                                               
Other
non-performing                                                  
assets ^ (2):
Real estate      $2,386    $2,996      $2,119       $1,961  $2,183
owned
Loans held for   13,107     18,991       26,830        30,163   29,626
sale
Total other
non-performing   15,493     21,987       28,949        32,124   31,809
assets
Total
non-performing   $46,119    $57,553      $63,902       $71,759  $86,397
assets ^(3):
                                                               
Non-performing
loans to total   8.27 %      9.76 %        9.20 %         10.17 %   13.22 %
loans
Non-performing
assets to total  7.23 %      8.98 %        10.01 %        11.13 %   13.47 %
assets
                                                               
^(1) Non-accrual status denotes any loan where the delinquency exceeds 90days
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. At March 31, 2013 there were $5.0
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 March 31,
                    2013                         2012
$ in thousands       Average          Average    Average            Average
                    Balance  Interest Yield/Cost Balance    Interest Yield/Cost
                                                                
Interest Earning                                                 
Assets:
Loans ^ (1)          $        $4,999 5.28 %     $467,382 $5,854 5.01 %
                     378,993
Mortgage-backed      49,552  187     1.51 %     46,953    284     2.42 %
securities
Investment           61,912  275     1.78 %     27,583    95      1.38 %
securities
Restricted Cash      10,645  1       0.03 %     6,415     —       0.03 %
Deposit
Equity Securities ^  2,750   23      3.41 %     2,968     113     15.31 %
(2)
Other investments
and federal funds    89,188  105     0.48 %     93,994    5       0.02 %
sold
Total
interest-earning     593,040 5,590   3.77 %     645,295   6,351   3.94 %
assets
Non-interest-earning 12,849                    7,662             
assets
Total assets         $                         $652,957         
                     605,889
                                                                
Interest Bearing                                                 
Liabilities:
Deposits:                                                        
Now demand           $ 25,310 $10    0.16 %     $26,776  $10    0.15 %
Savings and clubs    96,617  62      0.26 %     101,003   66      0.26 %
Money market         113,918 142     0.50 %     99,914    230     0.93 %
Certificates of      201,036 537     1.08 %     209,992   697     1.33 %
deposit
Mortgagors deposits  1,733   7       1.73 %     1,853     8       1.74 %
Total deposits       438,614 758     0.70 %     439,538   1,011   0.93 %
Borrowed money       44,836  336     3.04 %     83,542    748*    3.60 %
Total
interest-bearing     483,450 1,094   0.92 %     523,080   1,759   1.35 %
liabilities
Non-interest-bearing                                             
liabilities:
Demand               58,957                    60,421            
Other liabilities    8,607                     6,657             
Total liabilities    551,014                   590,158           
Stockholders' equity 54,875                    62,799            
Total liabilities &  $                          $652,957         
stockholders' equity 605,889
Net interest income          $4,496                     $4,592 
                                                                
Average interest                     2.85 %                       2.59 %
rate spread
                                                                
Net interest margin                  3.03 %                       2.85 %
                                                                
^(1) Includes                                                    
non-accrual loans
^(2) Includes                                                    
FHLB-NY stock
* Prepayment fees of $722 thousand from a FHLB Advance and other borrowed money
were excluded from the calculations


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED AVERAGE BALANCES
                                                                    
                                                                    
                    For the Fiscal Year Ended March 31,
                    2013                            2012
$ in thousands       Average             Average    Average             Average
                    Balance    Interest  Yield/Cost Balance    Interest  Yield/Cost
                                                                    
Interest Earning                                                     
Assets:
Loans ^(1)           $407,106 $21,398 5.26 %     $525,902 $25,930 4.93 %
Mortgage-backed      50,958    971      1.90 %     48,214    1,302    2.70 %
securities
Investment           53,012    874      1.65 %     23,195    313      1.35 %
securities
Restricted Cash      7,458     2        0.03 %     5,275     2        0.04 %
Deposit
Equity securities ^  2,596     93       3.57 %     2,928     372      12.72 %
(2)
Other investments
and federal funds    86,122    447      0.52 %     58,630    17       0.03 %
sold
Total
interest-earning     607,252   23,785   3.92 %     664,144   27,936   4.21 %
assets
Non-interest-earning 9,264                        5,690              
assets
Total assets         $616,516                    $669,834          
                                                                    
Interest Bearing                                                     
Liabilities:
Deposits:                                                            
Now demand           $25,842  $41     0.16 %     $26,532  $42     0.16 %
Savings and clubs    98,785    259      0.26 %     104,090   274      0.26 %
Money market         111,148   740      0.67 %     82,120    838      1.02 %
Certificates of      209,622   2,431    1.16 %     201,568   2,831    1.40 %
deposit
Mortgagors deposits  2,079     37       1.80 %     2,258     38       1.68 %
Total deposits       447,476   3,508    0.78 %     416,568   4,023    0.97 %
Borrowed money       44,099    1,370    3.11 %     95,762    3,308*   3.45 %
Total
interest-bearing     491,575   4,878    0.99 %     512,330   7,331    1.43 %
liabilities
Non-interest-bearing                                                 
liabilities:
Demand               61,293                       92,465             
Other liabilities    8,236                        7,190              
Total liabilities    561,104                      611,985            
Stockholders' equity 55,412                       57,849             
Total liabilities &  $616,516                    $669,834          
stockholders' equity
Net interest income            $18,907                     $20,605 
                                                                    
Average interest                        2.92 %                        2.78 %
rate spread
                                                                    
Net interest margin                     3.11 %                        3.10 %
                                                                    
^(1) Includes                                                        
non-accrual loans
^(2) Includes                                                        
FHLB-NY stock
* Prepayment fees of $722 thousand from a FHLB Advance and other borrowed money were
excluded from the calculations


CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED SELECTED KEY RATIOS
                                                                
                                  Three Months Ended    Fiscal Year Ended
                                  March 31,             March 31,
Selected Statistical Data:         2013       2012       2013       2012
                                                                
Return on average assets ^ (1)     0.45 %     (4.38)%    0.11 %     (3.49)%
Return on average equity ^ (2)     5.01 %     (45.53)%   1.19 %     (40.46)%
Net interest margin ^(3)           3.03 %     2.85 %     3.11 %     3.10 %
Interest rate spread ^(4)          2.85 %     2.59 %     2.92 %     2.78 %
Efficiency ratio ^ (5)             149.40 %   163.12 %   112.65 %   131.43 %
Operating expenses to average      5.55 %     5.05 %     4.74 %     4.62 %
assets ^ (6)
Average equity to average assets   9.06 %     9.62 %     8.99 %     8.64 %
^(7)
                                                                
Average interest-earning assets to
average interest-bearing           1.23 x    1.23 x    1.24 x    1.30x
liabilities
                                                                
Net income (loss) per share ^(*)   $0.19    $(1.93)  $0.18    $(14.26)
Average shares outstanding ^(*)    3,695,653 3,695,507 3,695,625 1,662,138
                                                                
                                  March 31,                       
                                  2013       2012                 
Capital Ratios:                                                  
Tier I leverage ratio ^(8)         10.26 %    9.83 %               
Tier I risk-based capital ratio    16.99 %    14.50 %              
^(8)
Total risk-based capital ratio ^   19.55 %    16.94 %              
(8)
                                                                
Asset Quality Ratios:                                            
Non performing assets to total     7.23 %     13.47 %              
assets ^(9)
Non performing loans to total      8.27 %     13.22 %              
loans receivable ^(9)
Allowance for loan losses to total 2.97 %     4.80 %               
loans receivable
Allowance for loan losses to       35.88 %    36.31 %              
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, real estate                                
owned and held-for-sale loans.
^(*) 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