Analysis of Q1 2016 Earnings - Report on Carver Bancorp

NEW YORK, September 18, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Carver Bancorp, Inc. (NASDAQ: CARV). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/reports?keyword=CARV  

Highlights from our CARV Report include:

• Marginal Growth In Net Income - On August 11, 2015, Carver Bancorp, Inc. announced results for the first quarter ended June 30, 2015, of the fiscal year 2016. Net income attributable to Carver grew to $178 thousand for the three month period, from a net income of $173 thousand in the year-ago period. The increase was mainly attributable to lower non-interest expense and higher net interest income (NII), which was offset by higher provisions made for loan losses in the quarter. Non-interest expenses declined 7.8% YoY to $6.0 million during the quarter. Further, NII grew by 8.1% YoY to $5.2 million, as interest income surged 7.8% YoY to $6.2 million aided by a 22.6% rise in the lender's average loan balances. Meanwhile, interest expenses advanced 6.7% YoY to $1.1 million in Q1 FY 16, primarily on account of 7.5% increase in interest expense on deposits.

• Provision for Loan Losses & Asset quality - The lender made provision for loan losses of $117 thousand in Q1 FY16, compared to a $781 thousand recovery of loan losses in Q1 FY15. Additionally, as on June 30, 2015, the bank's non-performing assets (NPAs) totaled $14.9 million, or 2.2% of total assets, compared to $14.9 million or 2.3% of total assets at June 30, 2014. The aforementioned NPAs consisted of $5.1 million of loans 90 days or more past due and non-accruing, $3.0 million of loans classified as a troubled debt restructuring, $3.7 million of other real estate owned, and $2.6 million of loans classified as HFS. Further, the allowance for loan losses stood at $4.1 million as on June 30, 2015.

• Financial Condition Highlights - The bank's total assets as on June 30, 2015 reflected an 0.8% decline to $670.8 million from $676.4 million as on at March 31, 2015. The Company informed that the decline was impacted by a decrease of $9.5 million in the investment portfolio and of $5 million in cash and cash equivalents, partially offset by an increase of $9.1 million in the loan portfolio net of the allowance for loan losses. Total liabilities as on June 30, 2015 declined 0.8% to $616.5 million from $621.4 million as on March 31, 2015, following the maturity of short-term borrowings, partially offset by increased deposits. Deposits, on the other hand, grew by 3.6% to $546.6 million as on June 30, 2015, compared to $527.8 million as on March 31, 2015, aided by an increase in certificates of deposits and money market accounts.

To find out how this influences our rating on Carver Bancorp, Inc., read the full report in its entirety here: http://www.aciassociation.com/reports?keyword=CARV

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