Carver Bancorp(CARV) - 2024 Q4 - Annual Report

Financial Performance - The net loss for the year ending March 31, 2024, was $2.98 million, compared to a net loss of $2.98 million for the previous year, indicating consistent performance despite losses[598] - For the fiscal year ended March 31, 2024, Carver Bancorp reported a net loss of $2.977 million, an improvement from a net loss of $4.401 million in the previous year, representing a 32.3% reduction in losses[599] - Non-interest income increased by $3.1 million, or 86.1%, to $6.7 million compared to $3.6 million in the prior year, driven by grant income from the CDFI Fund's Equitable Recovery Program[602] Asset and Liability Management - Total assets increased to $756.8 million as of March 31, 2024, compared to $723.2 million as of March 31, 2023, reflecting a growth of approximately 4.6%[594] - Total loans receivable, net, rose to $617.0 million, up from $592.7 million, indicating an increase of about 4.1% year-over-year[594] - Total deposits increased to $647.0 million, compared to $600.4 million, representing an increase of approximately 7.8%[594] - The allowance for credit losses was $5.9 million as of March 31, 2024, compared to $5.2 million a year earlier, reflecting a rise of about 12.3%[594] - The total equity decreased to $42.3 million from $45.2 million, reflecting a decrease of about 6.4%[594] - The bank's investment securities decreased to $50.0 million from $56.2 million, a decline of about 10.7%[594] - Non-interest bearing checking deposits decreased to $102.0 million from $109.4 million, a decline of approximately 6.5%[594] Cash and Liquidity - Cash and cash equivalents totaled $59.0 million, up from $42.6 million, marking an increase of approximately 38.5%[594] - Total cash and cash equivalents increased by $16.4 million to $59.0 million, reflecting cash provided by financing activities of $43.1 million, partially offset by cash used in investing activities of $20.1 million and cash used in operating activities of $6.6 million[605] - Net cash used in operating activities totaled $6.571 million, a decrease from $10.513 million in the previous year, indicating improved operational efficiency[599] - The Bank's liquidity position improved, with cash and cash equivalents qualifying for short-term liquidity totaling $59.0 million as of March 31, 2024, compared to $42.6 million in the prior year[604] Capital and Regulatory Compliance - The Company maintained a minimum regulatory capital level of 9% for its Tier 1 leverage ratio and 12% for its total risk-based capital ratio as required by the OCC[610] - The Company issued common stock in a private placement transaction during the second quarter, generating gross proceeds of $1.0 million[605] - The bank's common stock outstanding increased to 7,644,675 shares from 6,799,410 shares, indicating an increase of approximately 12.4%[598] Interest and Borrowing Costs - Interest paid by the Company for the fiscal year was $10.711 million, significantly higher than $4.621 million in the previous year, reflecting increased borrowing costs[605] - The total contractual obligations of the Company amounted to $282.748 million, with $224.684 million in certificates of deposit due within one year[609] Reserves and Warranties - The Bank's representation and warranty reserves for mortgage loans sold to FNMA totaled $86 thousand as of March 31, 2024[606]