Carver Bancorp(US:CARV)2024-11-14 21:35Financial Performance - Carver Bancorp, Inc. had approximately $748.8 million in assets as of September 30, 2024[123]. - Total assets decreased by $8.0 million, or 1.1%, to $748.8 million as of September 30, 2024, compared to $756.8 million at March 31, 2024[159]. - Total equity decreased by $2.4 million, or 5.7%, to $39.9 million at September 30, 2024, due to a net loss of $4.3 million for the six-month period[166]. - The Company reported a net loss of $2.1 million for the three months ended September 30, 2024, compared to a net loss of $1.6 million for the comparable prior year quarter[170]. - Non-interest income decreased by $0.9 million, or 60.0%, to $0.6 million for the three months ended September 30, 2024, compared to $1.5 million for the prior year quarter[194]. - Net interest income increased by $0.6 million, or 11.1%, to $6.0 million for the three months ended September 30, 2024, compared to $5.4 million for the same quarter last year[177]. - Net interest income for the six months ended September 30, 2024, was $11.5 million, an increase from $10.9 million in the prior year[182]. Capital and Liquidity - The Bank's Tier 1 leverage capital ratio was 9.48% as of September 30, 2024, exceeding the minimum regulatory requirement of 9%[153]. - The total risk-based capital ratio was 12.78% at September 30, 2024, above the individual minimum capital requirement of 12%[152]. - Cash and cash equivalents totaled $54.5 million at September 30, 2024, down from $59.0 million at March 31, 2024, reflecting a decrease of $4.5 million[145]. - Total cash and cash equivalents decreased by $4.5 million, or 7.6%, from $59.0 million at March 31, 2024, to $54.5 million at September 30, 2024[160]. Loan Portfolio and Credit Quality - Carver Federal's loan portfolio segments include one-to-four family, multifamily, commercial real estate, construction, and business loans[133][134][135][136][137]. - Gross portfolio loans decreased by $3.7 million, or 0.6%, to $619.2 million at September 30, 2024, primarily due to attrition and payoffs of $30.1 million[162]. - Nonaccrual loans totaled $17.1 million, or 2.3% of total assets, as of September 30, 2024, compared to $11.8 million, or 1.6% of total assets at March 31, 2024[188]. - The allowance for credit losses (ACL) was $6.2 million at September 30, 2024, representing a ratio of ACL to total loans of 1.01%[188]. - The provision for credit losses was $461 thousand for the three months ended September 30, 2024, compared to $168 thousand for the prior year quarter[186]. - The Bank had $2.6 million in subprime loans, representing 0.4% of its total loan portfolio, with $0.7 million classified as non-performing[193]. Interest Income and Expense - Interest income increased by $1.8 million, or 22.5%, to $9.8 million for the three months ended September 30, 2024, compared to $8.0 million for the prior year quarter[182]. - Interest expense rose by $1.2 million, or 46.2%, to $3.8 million for the three months ended September 30, 2024, compared to $2.6 million for the prior year quarter[183]. - The average interest rate spread was 2.75% for the three months ended September 30, 2024, compared to 2.64% in the prior year[182]. Community Engagement and Competition - The Bank received an "Outstanding" rating from the OCC, with 90% of loans made within its assessment area[123]. - The Company aims to expand wealth-enhancing opportunities in underserved communities through increased access to capital[123]. - The Bank's community involvement and targeted services help it compete against larger financial institutions[128]. - The Bank faces significant competition from commercial banks, savings institutions, and credit unions in its market areas[127]. Borrowings and Advances - Net borrowings decreased by $8.2 million, or 17.6%, to $38.3 million at September 30, 2024, from $46.5 million at March 31, 2024[143]. - Advances from the FHLB-NY and other borrowed money decreased by $8.2 million, or 17.6%, to $38.3 million at September 30, 2024[165]. - The Bank secured a $1.8 million 12-month fixed-rate advance through the FHLB-NY 0% Development Advance Program during the first quarter of the current fiscal year[143]. - The Company entered into a $25.0 million revolving unsecured long-term loan to support green energy initiatives[144]. Operational Efficiency - The efficiency ratio was 125.11% for the three months ended September 30, 2024, compared to 120.66% for the same period in 2023[172]. - Non-interest expense decreased by $0.1 million, or 1.2%, to $8.2 million for the three months ended September 30, 2024, while increasing by $0.4 million, or 2.5%, to $16.4 million for the six months ended September 30, 2024[195]. Asset Quality - As of September 30, 2024, non-performing assets totaled $17.2 million, or 2.3% of total assets, up from $11.8 million, or 1.6% of total assets at March 31, 2024[192]. - Total nonaccrual loans amounted to $17.1 million, an increase from $10.3 million in the previous quarter, with nonaccrual loans to total loans ratio at 2.77%[192]. - Modified loans to borrowers experiencing financial difficulty totaled $6.0 million, with $5.7 million classified as performing[190]. - Allowance to total loans was 1.01% as of September 30, 2024, compared to 0.95% in the previous quarter[192]. - Allowance to nonaccrual loans was 36.45%, down from 57.79% in the previous quarter[192]. Disclosure and Governance - The Company maintains effective disclosure controls and procedures as of September 30, 2024[198].