Carver Bancorp, Inc. Reports Second Quarter Fiscal Year 2014 Results

Carver Bancorp, Inc. Reports Second Quarter Fiscal Year 2014 Results

Fourth Consecutive Quarter of Positive Earnings Results

NEW YORK, Nov. 4, 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 second
fiscal quarter of 2014 ended September 30, 2013.

The Company reported net income of $342 thousand or basic and diluted earnings
per share of $0.09 for the second quarter of its fiscal year ending March 31,
2014, compared to a net loss of $136 thousand or a loss per share of $0.04,
for the prior year period. For the six months ended September 30, 2013, the
Company reported net income of $753 thousand or basic and diluted earnings per
share of $0.20, compared to a net loss of $499 thousand or a loss per share of
$0.14 for the comparative prior year period.

Deborah C. Wright, Carver Bancorp Chairman and CEO said, "We are pleased to
report our fourth consecutive quarter of positive earnings results. Our loan
performance continued to improve, with non-performing assets declining 10%
from the prior quarter and 58% year-over-year, and delinquencies declining 29%
over the prior quarter to their lowest level since the economic downturn
began. Our net interest margin increased to 3.43%, as we saw growth in our
loan portfolio for the first time in four years and our funding costs remained
steady. While margins may be uneven over the next few quarters given interest
rate volatility, our disciplined approach to lending and improving loan
pipeline should positively impact our balance sheet. Our capital ratios
continue to strengthen, with our Tier I leverage ratio increasing to 10.53%
compared to 10.43% for the first quarter."

Ms. Wright added: "We continue to see success in our innovative Carver
Community Cash program, which now includes four self-service kiosks that offer
on-site check cashing and bill payment service near shopping and residential
complexes for consumers who do not have an account with Carver. For the first
six months of fiscal 2014, Carver Community Cash added approximately 4,100 new
enrollments,40%of whom opened an account or expanded their banking
relationshipwith Carver. Over the longer term, our expectation is that this
initiative will expand our franchise, while diversifying our customer base and
sources of fee income."

Statement of Operations Highlights

Second Quarter Results

The Company reported net income for the three months ended September 30, 2013
of $342 thousand compared to a net loss of $136 thousand in the prior year
period. Primary drivers of improvement in net income over the prior year
period loss was a negative provision in the current quarter versus higher
non-interest expense partially offset by one-time New Market Tax Credit
("NMTC") fee income in the prior year period.

Net Interest Income

Interest income decreased $175 thousand, or 2.9%, to $5.9 million compared to
$6.1 million for the prior year quarter, primarily attributable to a $42.5
million, or 10.3%, decrease in average loans. Although the average yield on
loans increased 37 basis points to 5.67% from 5.30%, following a reduction in
non-performing loans, a decrease in average loans reduced total interest
income. The average yield on mortgage-backed securities fell 13 basis points
to 1.96% from 2.09% as securities added to the portfolio carried lower yields
than securities sold or paid down.

Interest expense decreased $276 thousand, or 22.0%, to $977 thousand compared
to $1.3 million in the prior year quarter, following restructuring of certain
long-term borrowings in the first quarter of the current fiscal year, and
lower rates paid on money market accounts and certificates of deposits. The
average rate on interest-bearing liabilities decreased 22 basis points to
0.79% for the quarter ended September 30, 2013.

Provision for Loan Losses

The Company recorded a $505 thousand negative provision for loan losses
compared to a $560 thousand provision for the prior year quarter. Net
charge-offs of $413 thousand were recognized compared to $2.8 million in the
prior year period. Charge-offs in both periods were primarily related to
impaired loans and loans moved to held-for-sale ("HFS").

Non-interest Income

Non-interest income decreased $857 thousand, or 35.2%, to $1.6 million in the
second quarter, compared to $2.4 million for the prior year quarter. The
decrease was due to $625 thousand in NMTC fees in the prior year period, and
losses on sales of real estate owned and lower of cost or market adjustments
on loans HFS in the current period.

Non-interest Expense

Non-interest expense decreased $291 thousand to $6.6 million, compared to $6.9
million in the prior year quarter. Non-interest expense was lower in all
categories with largest decreases in data processing, as we consolidate vendor
contracts, and net equipment expenses.

Income Taxes

The income tax expense was $16 thousand for the second quarter compared to $36
thousand in the prior year period.

Six Month Results

The Company reported net income of $753 thousand for the six months ended
September 30, 2013, compared to a net loss of $499 thousand for the prior year
period. This improvement was primarily driven by lower non-interest expenses
over the prior year period.

Net Interest Income

Interest income decreased $757 thousand, or 6.2%, to $11.5 million for the six
month period, compared to $12.3 million for the prior year period, primarily
attributed to a $53.5 million, or 12.7%, decrease in average loans. The
average yield on loans increased 27 basis points to 5.52% from 5.25%, 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 declined 22 basis points to
1.89% from 2.11% during the prior year period, as higher yielding securities
were sold or paid down, and replaced with lower yielding securities.

Interest expense decreased $586 thousand, or 22.8%, to $2.0 million, compared
to $2.6 million for the prior year period, due to lower rates paid on money
market accounts and certificates of deposits and restructuring of certain
long-term borrowings in the first quarter. The average yield on
interest-bearing liabilities decreased 21 basis points to 0.82% for the six
months ended September 30, 2013.

Provision for Loan Losses

The Company recorded a $326 thousand provision for loan losses for the six
month period, compared to $784 thousand for the prior year period. For the six
months ended September 30, 2013, net charge-offs of $1.9 million were
recognized compared to $4.2 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 $332 thousand, or 9.8%, to $3.7 million for the
six month period, compared to $3.4 million for the prior year period. The
increase is attributable to gains on sale of securities and increases in the
Bank's depository and loan fees, partially offset by NMTC fees in the prior
year period.

Non-interest Expense

Non-interest expense decreased $1.6 million, or 12.2%, to $11.9 million,
compared to $13.5 million in the prior year period. The decrease is attributed
to lower expenses in most categories including a reduction of $705 thousand in
reserves for losses associated with the repurchase of mortgage loans sold by
the Bank to Fannie Mae and lower employee compensation expenses of $410
thousand following staff reductions.

Income Taxes

The income tax expense was $88 thousand for the six month period compared to
$196 thousand in the prior year period.

Financial Condition Highlights

At September 30, 2013, total assets decreased $3.5 million, or 0.5%, to $634.8
million, compared to $638.3 million at March 31, 2013. The overall change was
due to a decrease of $25.5 million in the investment portfolio, offset by
increases in the loan portfolio, net of the allowance for loan losses, of
$30.5 million.

Total investment securities decreased $25.5 million, or 20.3%, to $99.6
million at September 30, 2013, compared to $125.1 million at March 31, 2013.
This change reflects a decrease of $28.8 million in available-for-sale
securities, as the Company sold its lowest yielding securities to fund loan
growth.

Net loans receivable increased $28.9 million, or 7.8%, to $399.0 million at
September 30, 2013, compared to $370.1 million at March 31, 2013. The majority
of the increase resulted from loan purchases, originations, refinancings and
advances of $100.1 million, offset by $61.8 million of principal repayments
and loan payoffs across all loan classifications. An additional $7.9 million
in loans were transferred from held-for-investment to HFS and $1.3 million
represented principal charge-offs associated with the move in loans to HFS.

HFS loans decreased $5.3 million, or 40.1%, to $7.9 million as the Company
continued to take aggressive steps to resolve troubled loans. For the first
six months of Fiscal 2014, $7.9 million in loans, net of charge-offs, were
transferred into the HFS portfolio from the held-for-investment portfolio.
This increase was offset by $13.0 million in sales and paydowns.

Total liabilities increased $1.5 million, or 0.3%, to $583.1 million at
September 30, 2013, compared to $581.5 million at March 31, 2013, due to an
increase in borrowings of $19.0 million, offset by reductions in deposits of
$16.3 million.

Deposits decreased $16.3 million, or 3.3%, to $479.5 million at September 30,
2013, compared to $495.7 million at March 31, 2013, due primarily to decreases
in certificates of deposit as the low interest rate environment led depositors
to seek alternative investment opportunities for maturing deposits.

Advances from the Federal Home Loan Bank of New York ("FHLB-NY") and other
borrowed money increased $19.0 million, or 24.9%, to $95.4 million at
September 30, 2013, compared to $76.4 million at March 31, 2013, as the
Company increased short-term borrowings during the six month period.

Total equity decreased $5.0 million, or 8.8%, to $51.8 million at September
30, 2013, compared to $56.7 million at March 31, 2013. The majority of the
decrease was due to $5.9 million in unrealized losses on investments caused by
the spike in interest rates during the six month period.

Asset Quality

At September 30, 2013, non-performing assets totaled $27.0 million, or 4.2% of
total assets, compared to $46.1 million or 7.2% of total assets at March 31,
2013, and $63.9 million or 10.0% of total assets at September 30, 2012.
Non-performing assets at September 30, 2013 were comprised of $10.0 million of
loans 90 days or more past due and non-accruing, $4.6 million of loans
classified as a troubled debt restructuring, $3.6 million of loans that were
either performing or less than 90 days past due that have been classified as
impaired, $1.0 million of Real Estate Owned, and $7.9 million of loans
classified as HFS.

The allowance for loan losses was $9.4 million at September 30, 2013, which
represents a ratio of the allowance for loan losses to non-performing loans of
51.8% compared to 35.9% at March 31, 2013. The ratio of the allowance for loan
losses to total loans was 2.4% at September 30, 2013, a decrease from 3.0% at
March 31, 2013.

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
                                                                  
                                                     September 30, March 31,
$ in thousands except per share data                  2013          2013
ASSETS                                                             
Cash and cash equivalents:                                         
Cash and due from banks                               $95,841     $98,083
Money market investments                              10,001        6,563
Total cash and cash equivalents                       105,842       104,646
Restricted cash                                       6,556         10,666
Investment securities:                                             
Available-for-sale, at fair value                     87,222        116,051
Held-to-maturity, at amortized cost (fair value of
$12,542 and $9,629 at September 30, 2013 and March    12,419        9,043
31, 2013, respectively)
Total investments                                     99,641        125,094
                                                                  
Loans held-for-sale ("HFS")                           7,854         13,107
                                                                  
Loans receivable:                                                  
Real estate mortgage loans                            369,083       334,594
Commercial business loans                             29,765        35,281
Consumer loans                                        193           247
Loans, net                                            399,041       370,122
Allowance for loan losses                             (9,399)       (10,989)
Total loans receivable, net                           389,642       359,133
Premises and equipment, net                           8,243         8,597
Federal Home Loan Bank of New York ("FHLB-NY") stock, 4,226         3,503
at cost
Accrued interest receivable                           2,530         2,247
Other assets                                          10,280        11,284
Total assets                                          $634,814    $638,277
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                               
LIABILITIES                                                        
Deposits:                                                          
Savings                                               $95,435     $98,066
Non-interest bearing checking                         54,839        58,239
NOW                                                   25,962        25,927
Money market                                          115,484       113,259
Certificates of deposit                               187,738       200,225
Total deposits                                        479,458       495,716
Advances from the FHLB-New York and other borrowed    95,403        76,403
money
Other liabilities                                     8,195         9,423
Total liabilities                                     583,056       581,542
                                                                  
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; 3,697,836 and 3,697,364 issued;    61            61
3,695,892 and 3,695,420 shares outstanding at
September 30, 2013 and March 31, 2013, respectively)
Additional paid-in capital                            55,980        55,708
Accumulated deficit                                   (43,685)      (44,439)
Non-controlling interest                              57            141
Treasury stock, at cost (1,944 shares at September    (417)         (417)
30, 2013 and March 31, 2013)
Accumulated other comprehensive (loss)/income         (5,356)       563
Total stockholders' equity                            51,758        56,735
Total liabilities and stockholders equity             $634,814    $638,277




CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                 
                                       Three Months Ended Six Months Ended
                                       September 30,      September 30,
$ in thousands except per share data    2013     2012      2013      2012
Interest Income:                                                  
Loans                                   $5,263 $5,486  $10,178 $11,074
Mortgage-backed securities              285     275      548      569
Investment securities                   348     307      696      507
Money market investments                46      49       89       118
Total interest income                   5,942   6,117    11,511   12,268
                                                                 
Interest expense:                                                 
Deposits                                687     906      1,384    1,882
Advances and other borrowed money       290     347      603      691
Total interest expense                  977     1,253    1,987    2,573
                                                                 
Net interest income                     4,965   4,864    9,524    9,695
Provision for loan losses               (505)   560      326      784
Net interest income after provision for 5,470   4,304    9,198    8,911
loan losses
                                                                 
Non-interest income:                                              
Depository fees and charges             878     892      1,790    1,688
Loan fees and service charges           305     195      603      395
Gain on sale of securities              208     --       486      --
Gain on sales of loans, net             180     569      670      604
Loss on sale of real estate owned       (84)    --       (131)    (288)
New Market Tax Credit ("NMTC") fees     --      625      --       625
Lower of cost or market adjustment on   (163)   --       (232)    --
loans held-for-sale
Other                                   253     153      520      350
Total non-interest income               1,577   2,434    3,706    3,374
                                                                 
Non-interest expense:                                             
Employee compensation and benefits      2,646   2,704    5,014    5,424
Net occupancy expense                   876     916      1,747    1,774
Equipment, net                          209     287      384      575
Data processing                         226     322      582      516
Consulting fees                         92      113      212      180
Federal deposit insurance premiums      307     331      616      674
Other                                   2,243   2,217    3,325    4,381
Total non-interest expense              6,599   6,890    11,880   13,524
                                                                 
Income/(loss) before income taxes       448     (152)    1,024    (1,239)
Income tax expense                      16      36       88       196
Consolidated net income/(loss)          432     (188)    936      (1,435)
Less: Net income/(loss) attributable to 90      (52)     183      (936)
non-controlling interest
Net income/(loss) attributable to       $342   $(136)  $753    $(499)
Carver Bancorp, Inc.
                                                                 
Earnings/(loss) per common share:                                 
Basic                                   $0.09  $(0.04) $0.20   $(0.14)
Diluted                                 $0.09  N/A       $0.20   N/A




CARVER BANCORP, INC. AND SUBSIDIARIES
Non Performing Asset Table
                                                              
$ in thousands       September   June       March 2013  December   September
                     2013        2013                   2012       2012
Loans accounted for
on a non-accrual                                               
basis ^(1):
Gross loans                                                    
receivable:
One-to-four family   $4,343    $6,666   $7,642    $7,249   $6,094
Multi-family         758        659       423        483       1,724
Commercial real      10,503     8,091     14,788     18,872    14,145
estate
Construction         75         693       1,230      1,230     4,258
Business             2,457      3,350     6,505      7,718     8,717
Consumer             4          --        38         14        15
Total non-performing $18,140   $19,459  $30,626   $35,566  $34,953
loans
                                                              
Other non-performing                                           
assets ^(2):
Real estate owned    970        946       2,386      2,996     2,119
Loans held-for-sale  7,854      9,709     13,107     18,991    26,830
Total other
non-performing       8,824      10,655    15,493     21,987    28,949
assets
Total non-performing $26,964   $30,114  $46,119   $57,553  $63,902
assets ^(3):
                                                              
Non-performing loans 4.55 %      5.47 %     8.27 %      9.76 %     9.20 %
to total loans
Non-performing
assets to total      4.25 %      4.75 %     7.23 %      8.98 %     10.01 %
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.At September 30, 2013, there were
$10.9 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,
                    2013                           2012
                    Average            Average    Average            Average
$ in thousands       Balance    Interest Yield/Cost Balance    Interest Yield/Cost
Interest-Earning                                                   
Assets:
Loans ^(1)           $371,577 $5,263 5.67 %     $414,092 $5,486 5.30 %
Mortgage-backed      58,226    285     1.96 %     52,685    275     2.09 %
securities
Investment           60,966    266     1.75 %     54,194    221     1.63 %
securities
Restricted cash      6,556     --      0.03 %     6,415     1       0.03 %
deposit
Equity securities    2,717     27      3.94 %     2,525     23      3.61 %
^(2)
Other investments
and federal funds    78,550    101     0.51 %     79,447    111     0.55 %
sold
Total
interest-earning     578,592   5,942   4.11 %     609,358   6,117   4.01 %
assets
Non-interest-earning 31,753                      8,820             
assets
Total assets         $610,345                   $618,178         
                                                                  
Interest-Bearing                                                   
Liabilities:
Deposits:                                                          
Now demand           $25,556  $10    0.16 %     $26,393  $11    0.17 %
Savings and clubs    96,566    64      0.26 %     99,807    66      0.26 %
Money market         115,777   134     0.46 %     109,341   194     0.70 %
Certificates of      189,380   471     0.99 %     212,516   627     1.17 %
deposit
Mortgagors deposits  1,853     8       1.71 %     1,839     8       1.73 %
Total deposits       429,132   687     0.64 %     449,896   906     0.80 %
Borrowed money       61,870    290     1.86 %     43,906    347     3.14 %
Total
interest-bearing     491,002   977     0.79 %     493,802   1,253   1.01 %
liabilities
Non-interest-bearing                                               
liabilities:
Demand               55,248                      60,890            
Other liabilities    7,779                       8,266             
Total liabilities    554,029                     562,958           
Non-controlling      (165)                       (200)             
interest
Stockholders' equity 56,481                      55,420            
Total liabilities &  $610,345                   $618,178         
stockholders' equity
Net interest income            $4,965                     $4,864 
                                                                  
Average interest                       3.32 %                       3.01 %
rate spread
                                                                  
Net interest margin                    3.43 %                       3.19 %
                                                                  
^(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,
                    2013                           2012
                    Average             Average    Average             Average
$ in thousands       Balance    Interest  Yield/Cost Balance    Interest  Yield/Cost
Interest-Earning                                                     
Assets:
Loans ^(1)           $368,657 $10,178 5.52 %     $422,185 $11,074 5.25 %
Mortgage-backed      58,098    548      1.89 %     54,015    569      2.11 %
securities
Investment           61,894    540      1.74 %     43,099    332      1.54 %
securities
Restricted cash      7,903     1        0.03 %     6,415     1        0.03 %
deposit
Equity securities    2,339     46       3.92 %     2,546     46       3.60 %
^(2)
Other investments
and federal funds    76,328    198      0.52 %     89,567    246      0.55 %
sold
Total
interest-earning     575,219   11,511   4.00 %     617,827   12,268   3.97 %
assets
Non-interest-earning 30,829                       7,553              
assets
Total assets         $606,048                    $625,380          
                                                                    
Interest-Bearing                                                     
Liabilities:
Deposits:                                                            
Now demand           $25,987  $21     0.16 %     $26,500  $21     0.16 %
Savings and clubs    97,278    129      0.26 %     100,552   133      0.26 %
Money market         115,112   265      0.46 %     109,335   397      0.72 %
Certificates of      191,309   951      0.99 %     216,364   1,312    1.21 %
deposit
Mortgagors deposits  2,049     18       1.75 %     2,147     19       1.77 %
Total deposits       431,735   1,384    0.64 %     454,898   1,882    0.83 %
Borrowed money       53,482    603      2.25 %     43,918    691      3.14 %
Total
interest-bearing     485,217   1,987    0.82 %     498,816   2,573    1.03 %
liabilities
Non-interest-bearing                                                 
liabilities:
Demand               55,856                       63,033             
Other liabilities    8,237                        7,563              
Total liabilities    549,310                      569,412            
Non-controlling      (210)                        231                
interest
Stockholders' equity 56,948                       55,737             
Total liabilities &  $606,048                    $625,380          
stockholders' equity
Net interest income            $9,524                      $9,695  
                                                                    
Average interest                        3.18 %                        2.94 %
rate spread
                                                                    
Net interest margin                     3.31 %                        3.14 %
                                                                    
^(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      2013          2012          2013         2012
Data:
Return on average assets  0.22 %        (0.09)%       0.25 %       (0.16)%
^(1)
Return on average         2.39 %        (0.97)%       2.62 %       (1.79)%
stockholders' equity ^(2)
Net interest margin ^(3)  3.43 %        3.19 %        3.31 %       3.14 %
Interest rate spread ^(4) 3.32 %        3.01 %        3.18 %       2.94 %
Efficiency ratio ^(5)(10) 100.87 %      94.41 %       89.80 %      103.48 %
Operating expenses to     4.32 %        4.46 %        3.92 %       4.33 %
average assets ^(6)
Average equity to average 9.25 %        8.97 %        9.40 %       8.91 %
assets ^(7)
                                                               
Average interest-earning
assets to average         1.18 x       1.23 x       1.19 x      1.24 x
interest-bearing
liabilities
                                                               
Basic earnings (loss) per $0.09       $(0.04)     $0.20      $(0.14)
share
Average shares            3,696,179    3,695,653    3,696,072   3,695,597
outstanding
                                                               
                         September 30                            
                         2013          2012                      
Capital Ratios:                                                 
Tier 1 leverage ratio     10.53 %       9.91 %                    
^(8)
Tier 1 risk-based capital 17.42 %       15.57 %                   
ratio ^(8)
Total risk-based capital  19.98 %       18.09 %                   
ratio ^(8)
                                                               
Asset Quality Ratios:                                           
Non performing assets to  4.25 %        10.01 %                   
total assets ^(9)
Non performing loans to
total loans receivable    4.55 %        9.20 %                    
^(9)
Allowance for loan losses 2.36 %        4.32 %                    
to total loans receivable
Allowance for loan losses 51.81 %       46.94 %                   
to non-performing loans
                                                               
^(1) Net income/(loss), annualized, divided by average total assets.
^(2) Net income/(loss), annualized, divided by average total stockholders'
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.
^(10) Non-GAAP Financial Measures: In addition to evaluating Carver Bancorp's
results of operations in accordance with U.S. generally accepted accounting
principles ("GAAP"), management routinely supplements their evaluation with an
analysis of certain non-GAAP financial measures, such as the efficiency
ratios.Management believes this non-GAAP financial measure provides
information useful to investors in understanding the Company's underlying
operating performance and trends, and facilitates comparisons with the
performance of other banks and thrifts.Further, the efficiency ratio is used
by management in its assessment of financial performance, including
non-interest expense control.

CONTACT: Ruth Pachman/Michael Herley
         Kekst and Company
         (212) 521-4800
        
         David L. Toner
         Carver Bancorp, Inc.
         (718) 676-8936
 
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