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

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

NEW YORK, Feb. 12, 2014 (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 2014 ended December 31, 2013.

The Company reported a net loss of $107 thousand or basic and diluted loss per
share of $0.03 for the third quarter of its fiscal year ending March 31, 2014,
compared to net income of $474 thousand or a basic and diluted earnings per
share of $0.13, for the prior year period. For the nine months ended
December31, 2013, the Company reported net income of $647 thousand or basic
and diluted earnings per share of $0.18, compared to a net loss of $26
thousand or a loss per share of $0.01 for the comparative prior year period.

Deborah C. Wright, Carver Bancorp Chairman and CEO said, "Management remains
focused on positioning Carver for long-term, profitable growth, by taking
steps to strengthen our balance sheet and grow our franchise. We were pleased
with loan portfolio improvement, reduction of non-performing assets, increased
interest income and decreased interest expense achieved during the quarter.
Non-performing assets declined 11% from the prior quarter and 58%
year-over-year, and delinquencies declined 20% over the prior quarter to their
lowest level since the economic downturn began. Net interest margin remained
strong at 3.39%, funding costs were stable and the Tier I leverage ratio is
essentially flat at 10.51%. Over the next few quarters interest margins may be
impacted by further volatility in interest rates, but our disciplined approach
to lending and improved loan pipeline should positively impact our balance
sheet.

"During the quarter, we terminated our discontinued pension plan and began the
process of reinstating a company match on our 401-K plan.These are important
strategic actions that eliminate risks to future earnings in a rising interest
rate environment andbetter position us to attract and retain talent in a very
competitive marketplace.

"Our Carver Community Cash product line continues to be a promising avenue for
growth.Over the coming quarters, we expect to expand our product line
visibility and penetration in geographic market that have a disproportionately
high level of unbanked and underbanked consumers."

Statement of Operations Highlights

Third Quarter Results

The Company reported a net loss for the three months ended December31, 2013
of $107 thousand compared to net income of $474 thousand in the prior year
period.The primary drivers of the change were higher gains on sales of loans
in the prior year period, partially offset by a higher loan loss provision
release and higher non-interest expenses in the current quarter.

Net Interest Income

Interest income increased $77 thousand, or 1.3%, to $6.0 million compared to
$5.9 million for the prior year quarter, primarily attributable to an increase
in average yields on loans and mortgage-backed securities during the
quarter.The average yield on loans increased 13 basis points to 5.39% from
5.26%.The average yield on mortgage-backed securities increased 48 basis
points to 2.34% from 1.86% as higher yielding securities were added to the
portfolio in the current fiscal year.

Interest expense decreased $231 thousand, or 19.1%, to $979 thousand compared
to $1.2 million in the prior year quarter, following lower rates paid on money
market accounts and certificates of deposits, and restructuring of certain
long-term borrowings in the first quarter of the current fiscal year.The
average rate on interest-bearing liabilities decreased 17 basis points to
0.82% for the quarter ended December31, 2013.

Provision for Loan Losses

The Company recorded a $1.1 million negative provision for loan losses
compared to a $398 thousand negative provision for the prior year quarter.Net
recoveries of $68 thousand were recognized compared to net charge-offs of $1.5
million in the prior year period.Recoveries and 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 $1.3 million, or 52.4%, to $1.2 million in the
third quarter, compared to $2.5 million for the prior year quarter.Most of
the decrease was due to $1.0 million higher in net gains on sales of loans in
the prior year period, and lower depository fees in the current period.

Non-interest Expense

Non-interest expense increased $231 thousand to $7.5 million, compared to $7.3
million in the prior year quarter.The increase was due to higher employee
compensation and benefit expense of $498 thousand primarily due to termination
of the Company's pension plan, partially offset by lower data processing
expense as we consolidate vendor contracts.

Income Taxes

The income tax expense was $6 thousand for the third quarter compared to $68
thousand in the prior year period.

Nine Month Results

The Company reported net income of $647 thousand for the nine months ended
December31, 2013, compared to a net loss of $26 thousand for the prior year
period.This improvement was primarily driven by lower non-interest expenses
over the prior year period and a negative loan loss provision in the current
period, partially offset by lower non-interest income.

Net Interest Income

Interest income decreased $678 thousand, or 3.7%, to $17.5 million for the
nine month period, compared to $18.2 million for the prior year period,
primarily attributed to a $36.5 million, or 8.8%, decrease in average
loans.The average yield on loans increased 22 basis points to 5.47% 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 was essentially
flat.

Interest expense decreased $817 thousand, or 21.6%, to $3.0 million, compared
to $3.8 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 20 basis points to 0.82% for the nine
months ended December31, 2013.

Provision for Loan Losses

The Company recorded a $726 thousand negative loan loss provision for the nine
month period, compared to a $386 thousand increase in the provision for loan
losses for the prior year period.For the nine months ended December31, 2013,
net charge-offs of $1.9 million were recognized compared to $5.7 million in
the prior year period.Charge-offs in both periods were primarily related to
impaired loans and loans that were moved to HFS.

Non-interest Income

Non-interest income decreased $1.0 million, or 16.9%, to $4.9 million for the
nine month period, compared to $5.9 million for the prior year period.The
decrease is attributable to $946 thousand higher gains on sale of loans and a
$625 thousand one-time new markets tax credits ("NMTC") fee in the prior year
period, offset by $447 thousand higher gains on sale of securities in the
current year period.

Non-interest Expense

Non-interest expense decreased $1.4 million, or 6.8%, to $19.4 million,
compared to $20.8 million in the prior year period.The decrease is attributed
to lower expenses in most categories including a reduction of $665 thousand in
reserves for losses associated with the repurchase of mortgage loans sold by
the Bank to Fannie Mae, and a $207 thousand decrease in net equipment
expenses.

Income Taxes

The income tax expense was $94 thousand for the nine month period compared to
$264 thousand in the prior year period.

Financial Condition Highlights

At December31, 2013, total assets increased $367 thousand, or 0.1% to $638.6
million, compared to $638.3 million at March31, 2013.The overall change was
due to increases in the loan portfolio, net of the allowance for loan losses,
of $25.6 million, and cash and cash equivalents of $13.7 million offset by a
decrease of $28.4 million in the investment portfolio.

Total investment securities decreased $28.4 million, or 22.7%, to $96.7
million at December31, 2013, compared to $125.1 million at March31,
2013.This change reflects a decrease of $31.4 million in available-for-sale
securities, as the Company sold its lowest yielding securities to fund loan
growth.

Net loans receivable increased $23.0 million, or 6.2%, to $393.1 million at
December31, 2013, compared to $370.1 million at March31, 2013.The majority
of the increase resulted from loan purchases, originations, and advances of
$105.2 million, offset by $71.6 million of principal repayments and loan
payoffs across all loan classifications.An additional $9.0 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 $5.4 million, or 41.4%, to $7.7 million at December31,
2013, as the Company continued to take aggressive steps to resolve troubled
loans.For the first nine months of fiscal 2014, $9.0 million in loans, net of
charge-offs, were transferred into the HFS portfolio from the
held-for-investment portfolio.This increase was offset by $14.0 million in
sales and paydowns.

Total liabilities increased $6.7 million, or 1.1%, to $588.2 million at
December31, 2013, compared to $581.5 million at March31, 2013, due to an
increase in borrowings of $19.0 million, offset by reductions in deposits of
$11.7 million.

Deposits decreased $11.7 million, or 2.4%, to $484.0 million at December31,
2013, compared to $495.7 million at March31, 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
December31, 2013, compared to $76.4 million at March31, 2013, as the Company
increased short-term borrowings during the nine month period to offset
reductions in deposits.

Total equity decreased $6.3 million, or 11.1%, to $50.4 million at
December31, 2013, compared to $56.7 million at March31, 2013.The majority
of the decrease was due to $7.5 million in unrealized losses on investments
caused by the spike in interest rates during the nine month period, offset by
a $502 thousand change in unrealized loss on pension liability from closeout
of the Company's pension fund and net income earned for the nine month
period.

Asset Quality

At December31, 2013, non-performing assets totaled $24.0 million, or 3.8% of
total assets, compared to $46.1 million or 7.2% of total assets at March31,
2013, and $57.6 million or 9.0% of total assets at December31,
2012.Non-performing assets at December31, 2013 were comprised of $9.6
million of loans 90 days or more past due and non-accruing, $3.3 million of
loans classified as troubled debt restructuring, $2.0 million of loans that
were either performing or less than 90 days past due that have been classified
as impaired, $1.4 million of Real Estate Owned, and $7.7 million of loans
classified as HFS.

The allowance for loan losses was $8.4 million at December31, 2013, which
represents a ratio of the allowance for loan losses to non-performing loans of
56.4% compared to 35.9% at March31, 2013.The ratio of the allowance for loan
losses to total loans was 2.1% at December31, 2013, a decrease from 3.0% at
March31, 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
                                                                  
                                                      December 31, March 31,
$ in thousands except per share data                   2013         2013
ASSETS                                                             
Cash and cash equivalents:                                         
Cash and due from banks                                $109,238   $98,083
Money market investments                               9,059       6,563
Total cash and cash equivalents                        118,297     104,646
Restricted cash                                        6,556       10,666
Investment securities:                                             
Available-for-sale, at fair value                      84,602      116,051
Held-to-maturity, at amortized cost (fair value of
$12,092 and $9,629 at December 31, 2013 and March 31,  12,089      9,043
2013, respectively)
Total investments                                      96,691      125,094
                                                                  
Loans held-for-sale ("HFS")                            7,678       13,107
                                                                  
Loans receivable:                                                  
Real estate mortgage loans                             364,820     334,594
Commercial business loans                              28,188      35,281
Consumer loans                                         155         247
Loans, net                                             393,163     370,122
Allowance for loan losses                              (8,415)     (10,989)
Total loans receivable, net                            384,748     359,133
Premises and equipment, net                            8,016       8,597
Federal Home Loan Bank of New York ("FHLB-NY") stock,  4,226       3,503
at cost
Accrued interest receivable                            2,620       2,247
Other assets                                           9,812       11,284
Total assets                                           $638,644   $638,277
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                               
LIABILITIES                                                        
Deposits:                                                          
Savings                                                $94,648    $98,066
Non-interest bearing checking                          58,186      58,239
NOW                                                    24,883      25,927
Money market                                           115,820     113,259
Certificates of deposit                                190,446     200,225
Total deposits                                         483,983     495,716
Advances from the FHLB-New York and other borrowed     95,403      76,403
money
Other liabilities                                      8,830       9,423
Total liabilities                                      588,216     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 December
31, 2013 and March 31, 2013, respectively)
Additional paid-in capital                             56,114      55,708
Accumulated deficit                                    (43,803)    (44,439)
Non-controlling interest                               (223)       141
Treasury stock, at cost (1,944 shares at December 31,  (417)       (417)
2013 and March 31, 2013)
Accumulated other comprehensive (loss) income          (6,422)     563
Total stockholders' equity                             50,428      56,735
Total liabilities and stockholders' equity             $638,644   $638,277
                                                                  

CARVER BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                 
                                       Three Months Ended Nine Months Ended
                                       December 31        December 31
$ in thousands except per share data    2013      2012     2013      2012
Interest Income:                                                  
Loans                                   $5,412  $5,325 $15,590 $16,398
Mortgage-backed securities              247      215     796      783
Investment securities                   313      349     1,009    857
Money market investments                32       38      121      156
Total interest income                   6,004    5,927   17,516   18,194
                                                                 
Interest expense:                                                 
Deposits                                694      868     2,078    2,750
Advances and other borrowed money       285      342     888      1,033
Total interest expense                  979      1,210   2,966    3,783
                                                                 
Net interest income                     5,025    4,717   14,550   14,411
Provision for (recovery of) loan losses (1,052)  (398)   (726)    386
Net interest income after provision for 6,077    5,115   15,276   14,025
loan losses
                                                                 
Non-interest income:                                              
Depository fees and charges             852      964     2,642    2,652
Loan fees and service charges           133      170     736      565
Gain on sale of securities              21       60      507      60
Gain on sale of loans, net              98       1,109   768      1,714
Loss on sale of real estate owned       (149)    --     (280)    (288)
New Market Tax Credit ("NMTC") fees     --      --     --      625
Lower of cost or market adjustment on   --      --     (232)    --
loans held-for-sale
Other                                   255      238     775      587
Total non-interest income               1,210    2,541   4,916    5,915
                                                                 
Non-interest expense:                                             
Employee compensation and benefits      3,317    2,819   8,331    8,243
Net occupancy expense                   887      910     2,634    2,684
Equipment, net                          298      314     682      889
Data processing                         244      326     826      842
Consulting fees                         119      63      331      243
Federal deposit insurance premiums      313      320     929      994
Other                                   2,357    2,552   5,682    6,933
Total non-interest expense              7,535    7,304   19,415   20,828
                                                                 
(Loss) / income before income taxes     (248)    352     777      (888)
Income tax expense                      6        68      94       264
Consolidated net (loss) / income        (254)    284     683      (1,152)
Less: Net (loss) / income attributable  (147)    (190)   36       (1,126)
to non-controlling interest
Net (loss) / income attributable to     $(107)  $474   $647    $(26)
Carver Bancorp, Inc.
                                                                 
(Loss) / Earnings per common share:                               
Basic                                   $(0.03) $0.13  $0.18   $(0.01)
Diluted                                 $(0.03) $0.13  $0.18   $(0.01)
                                                                 

CARVER BANCORP, INC. AND SUBSIDIARIES
Non Performing Asset Table
                                                           
$ in thousands     December   September  June 2013  March 2013  December2012
                   2013       2013
Loans accounted
for on a                                                    
non-accrual basis
^(1):
Gross loans                                                 
receivable:
One-to-four family $3,736   $4,343   $6,666   $7,642    $7,249
Multi-family       1,363     758       659       423        483
Commercial real    8,702     10,503    8,091     14,788     18,872
estate
Construction       --       75        693       1,230      1,230
Business           1,120     2,457     3,350     6,505      7,718
Consumer           1         4         --       38         14
Total
non-performing     $14,922  $18,140  $19,459  $30,626   $35,566
loans
                                                           
Other
non-performing                                              
assets ^(2):
Real estate owned  1,423     970       946       2,386      2,996
Loans              7,678     7,854     9,709     13,107     18,991
held-for-sale
Total other
non-performing     9,101     8,824     10,655    15,493     21,987
assets
Total
non-performing     $24,023  $26,964  $30,114  $46,119   $57,553
assets ^(3):
                                                           
Non-performing
loans to total     3.80 %     4.55 %     5.47 %     8.27 %      9.76 %
loans
Non-performing
assets to total    3.76 %     4.25 %     4.75 %     7.23 %      8.98 %
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 December 31, 2013, there were
$11.0 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 December 31,
                    2013                           2012
                    Average            Average    Average            Average
$ in thousands       Balance    Interest Yield/Cost Balance    Interest Yield/Cost
Interest-Earning                                                   
Assets:
Loans ^ (1)          $401,843 $5,412 5.39 %     $404,613 $5,325 5.26 %
Mortgage-backed      42,275    247     2.34 %     46,251    215     1.86 %
securities
Investment           46,789    236     2.02 %     64,025    267     1.67 %
securities
Restricted cash      6,556     1       0.03 %     6,415     --     0.03 %
deposit
Equity securities ^  2,323     23      3.93 %     2,545     23      3.59 %
(2)
Other investments
and federal funds    67,281    85      0.50 %     76,270    97      0.50 %
sold
Total
interest-earning     567,067   6,004   4.24 %     600,119   5,927   3.95 %
assets
Non-interest-earning 18,192                      9,269             
assets
Total assets         $585,259                   $609,388         
                                                                  
Interest-Bearing                                                   
Liabilities:
Deposits:                                                          
NOW demand           $24,632  $10    0.16 %     $25,054  $10    0.16 %
Savings and clubs    94,963    63      0.26 %     97,391    64      0.26 %
Money market         116,067   134     0.46 %     112,044   201     0.71 %
Certificates of      185,147   478     1.02 %     204,609   582     1.13 %
deposit
Mortgagors deposits  1,938     9       1.84 %     2,282     11      1.91 %
Total deposits       422,747   694     0.65 %     441,380   868     0.78 %
Borrowed money       53,120    285     2.13 %     43,737    342     3.10 %
Total
interest-bearing     475,867   979     0.82 %     485,117   1,210   0.99 %
liabilities
Non-interest-bearing                                               
liabilities:
Demand               55,548                      60,117            
Other liabilities    2,484                       9,324             
Total liabilities    533,899                     554,558           
Non-controlling      (78)                        (252)             
interest
Stockholders' equity 51,438                      55,082            
Total liabilities &  $585,259                   $609,388         
stockholders' equity
Net interest income            $5,025                     $4,717 
                                                                  
Average interest                       3.42 %                       2.96 %
rate spread
                                                                  
Net interest margin                    3.54 %                       3.14 %
                                                                  
^(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,
                    2013                           2012
                    Average             Average    Average             Average
$ in thousands       Balance    Interest  Yield/Cost Balance    Interest  Yield/Cost
Interest-Earning                                                     
Assets:
Loans ^ (1)          $379,759 $15,590 5.47 %     $416,306 $16,398 5.25 %
Mortgage-backed      52,804    796      2.01 %     51,418    783      2.03 %
securities
Investment           56,841    777      1.82 %     50,100    599      1.59 %
securities
Restricted cash      7,452     1        0.03 %     6,415     1        0.03 %
deposit
Equity securities    2,334     69       3.92 %     2,545     70       3.65 %
^(2)
Other investments
and federal funds    73,301    283      0.51 %     85,119    343      0.53 %
sold
Total
interest-earning     572,491   17,516   4.08 %     611,903   18,194   3.96 %
assets
Non-interest-earning 26,596                       8,134              
assets
Total assets         $599,087                    $620,037          
                                                                    
Interest-Bearing                                                     
Liabilities:
Deposits:                                                            
NOW demand           $25,534  $30     0.16 %     $26,016  $31     0.16 %
Savings and clubs    96,503    192      0.26 %     99,495    197      0.26 %
Money market         115,431   400      0.46 %     110,241   598      0.72 %
Certificates of      189,248   1,429    1.00 %     212,432   1,894    1.18 %
deposit
Mortgagors deposits  2,012     27       1.78 %     2,193     30       1.82 %
Total deposits       428,728   2,078    0.64 %     450,377   2,750    0.81 %
Borrowed money       53,361    888      2.21 %     43,857    1,033    3.13 %
Total
interest-bearing     482,089   2,966    0.82 %     494,234   3,783    1.02 %
liabilities
Non-interest-bearing                                                 
liabilities:
Demand               55,753                       62,057             
Other liabilities    6,306                        8,159              
Total liabilities    544,148                      564,450            
Non-controlling      (166)                        69                 
interest
Stockholders' equity 55,105                       55,518             
Total liabilities &  $599,087                    $620,037          
stockholders' equity
Net interest income            $14,550                     $14,411 
                                                                    
Average interest                        3.26 %                        2.95 %
rate spread
                                                                    
Net interest margin                     3.39 %                        3.14 %
                                                                    
^(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      2013          2012          2013         2012
Data:
Return on average assets  (0.07)%       0.31 %        0.32 %       (0.01)%
^ (1)
Return on average
stockholders' equity ^    (0.75)%       3.41 %        3.38 %       (0.14)%
(2)
Net interest margin ^(3)  3.54 %        3.14 %        3.39 %       3.14 %
Interest rate spread ^    3.42 %        2.96 %        3.26 %       2.95 %
(4)
Efficiency ratio ^(5)(10) 120.85 %      100.63 %      99.74 %      102.47 %
Operating expenses to     5.15 %        4.79 %        9.72 %       10.08 %
average assets ^ (6)
Average equity to average 8.79 %        9.04 %        9.20 %       8.95 %
assets ^(7)
                                                               
Average interest-earning
assets to average         1.19 x        1.24 x        1.19 x       1.24 x
interest-bearing
liabilities
                                                               
Basic earnings (loss) per $(0.03)     $0.13       $0.18      $(0.01)
share
Average shares            3,696,225    3,695,653    3,696,123   3,695,616
outstanding
                                                               
                         December 31                             
                         2013          2012                      
Capital Ratios:                                                 
Tier 1 leverage ratio     10.51 %       10.06 %                   
^(8)
Tier 1 risk-based capital 17.60 %       16.56 %                   
ratio ^(8)
Total risk-based capital  20.17 %       19.13 %                   
ratio ^ (8)
                                                               
Asset Quality Ratios:                                           
Non-performing assets to  3.76 %        8.98 %                    
total assets ^ (9)
Non-performing loans to
total loans receivable ^  3.80 %        9.76 %                    
(9)
Allowance for loan losses 2.14 %        3.97 %                    
to total loans receivable
Allowance for loan losses 56.39 %       40.72 %                   
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 facilities 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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