Carver Bancorp(US:CARV)2025-02-13 20:48Financial Performance - The company reported a net loss of $5.6 million for the three months ended December 31, 2024, compared to net income of $19 thousand for the same period in the prior year[167]. - Total equity decreased by $10.0 million, or 23.6%, to $32.3 million at December 31, 2024, resulting from a net loss of $10.0 million[163]. - Non-interest income decreased by $1.5 million, or 60.0%, to $1.0 million for the three months ended December 31, 2024, compared to $2.5 million in the prior year quarter[188]. - Non-interest expense increased by $1.4 million, or 17.3%, to $9.5 million for the three months ended December 31, 2024, compared to $8.1 million in the prior year quarter[189]. - Net interest income decreased by $2.5 million, or 45.5%, to $3.0 million for the three months ended December 31, 2024, compared to $5.5 million for the same quarter last year[172]. - Interest income decreased by $1.7 million, or 20.0%, to $6.8 million for the three months ended December 31, 2024, compared to $8.5 million for the prior year quarter[176]. - The net interest margin decreased to 1.63% for the three months ended December 31, 2024, down from 3.03% in the prior year[176]. - The average interest rate spread decreased to 2.14% for the nine months ended December 31, 2024, down from 2.66% in the prior year[175]. Asset and Liability Management - Total assets decreased by $29.3 million, or 3.9%, to $727.5 million as of December 31, 2024, from $756.8 million at March 31, 2024[156]. - Total liabilities decreased by $19.2 million, or 2.7%, to $695.3 million at December 31, 2024, due to a $10.1 million decrease in total deposits[160]. - The Bank's cash and cash equivalents totaled $50.0 million at December 31, 2024, down from $59.0 million at March 31, 2024[140]. - During the nine months ended December 31, 2024, total cash and cash equivalents decreased by $9.0 million, reflecting cash used in operating activities of $6.4 million and cash used in financing activities of $18.1 million[143]. - Net borrowings decreased by $8.2 million, or 17.6%, to $38.3 million at December 31, 2024, compared to $46.5 million at March 31, 2024[138]. - Advances from the FHLB-NY and other borrowed money decreased by $8.2 million, or 17.6%, to $38.3 million at December 31, 2024[162]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) increased to $6.1 million as of December 31, 2024, compared to $5.9 million as of December 31, 2023[180]. - The company recorded a provision for credit losses of $817 thousand for the nine months ended December 31, 2024, compared to a provision of $77 thousand for the prior year period[181]. - Net charge-offs for the nine months ended December 31, 2024, were $631 thousand, compared to $77 thousand in the prior year[181]. - The allowance for credit losses (ACL) was $6.1 million at December 31, 2024, with a ratio of ACL to nonaccrual loans at 26.6%, down from 49.9% at March 31, 2024[182]. - Non-performing assets reached $22.9 million, or 3.1% of total assets, compared to $11.8 million, or 1.6% at March 31, 2024[186]. - The ratio of nonaccrual loans to total loans was 3.73% as of December 31, 2024, compared to 2.77% at September 30, 2024[186]. - The allowance to total loans ratio was 0.99% at December 31, 2024, slightly up from 0.94% at March 31, 2024[186]. Capital and Regulatory Compliance - Carver Federal's Tier 1 leverage capital ratio was 9.03% and total risk-based capital ratio was 12.14% as of December 31, 2024, exceeding regulatory requirements[148]. - The Company has a $25.0 million revolving unsecured loan facility to support green initiatives, which has not been drawn upon as of December 31, 2024[139]. Loan Portfolio and Lending Practices - Carver Federal's loan portfolio segments include one-to-four family loans and multifamily loans, with specific underwriting guidelines and risk assessments[133][134]. - The Bank's multifamily loans require a debt service coverage ratio of at least 1.30x and a maximum loan-to-value ratio of 70%[134]. - The maximum loan-to-value (LTV) ratio on commercial real estate loans is generally 70%[136]. - The Bank's primary lending market includes Kings, Bronx, and Queens Counties in New York City, facing significant competition from larger financial institutions[127]. - The Bank's community involvement and targeted services help it compete in historically underserved areas[128]. - The Bank had $2.6 million in subprime loans, accounting for 0.4% of its total loan portfolio, with $0.7 million classified as non-performing loans[187]. - Modified loans to borrowers experiencing financial difficulty totaled $6.0 million, with $5.7 million classified as performing[184]. Stock and Shareholder Activity - As of December 31, 2024, Carver Federal repurchased 11,744 shares of its common stock at an average price of $235.80 per share[136]. - The Company sold an aggregate of 397,367 shares of common stock for approximately $3.1 million during fiscal year 2022[141].