Carver Bancorp Reports $1.2 Million Net Loss, Stable Interest Income for Q2 2025

Carver Bancorp, Inc. reported a net loss of $1.2 million for the three months ended June 30, 2025, a decrease from a net loss of $2.2 million in the same period last year. The company's total interest income remained stable at $9.2 million, while interest expense decreased by 2.7% to $3.6 million. The net interest income increased by 1.8% to $5.6 million, attributed to a reduction in interest expenses. Non-interest income rose significantly to $1.3 million, up from $705,000 in the prior year, driven by higher depository fees and charges, as well as other non-interest income sources.

In terms of financial position, total assets decreased by 2.2% to $713.6 million as of June 30, 2025, down from $730 million at the end of March 2025. This decline was primarily due to a $6.5 million drop in cash and cash equivalents and an $8.4 million reduction in the net loan portfolio. Total loans receivable decreased to $605.3 million, reflecting attrition and payoffs of $22.7 million, partially offset by new loan originations of $10.9 million and loan purchases of $3.5 million. The allowance for credit losses stood at $6.3 million, representing 1.04% of total loans.

Carver Bancorp's total liabilities also fell by 2.2% to $685.1 million, primarily due to a $16.3 million decrease in total deposits. The company reported a total equity of $28.5 million, down from $29.6 million, largely due to the net loss incurred during the quarter. The bank's capital ratios showed that the Tier 1 leverage ratio was 8.82%, below the required 9%, while the total risk-based capital ratio was 11.58%, also below the 12% minimum capital requirement set by the Office of the Comptroller of the Currency (OCC).

Operationally, Carver Bancorp continues to focus on its community banking mission, serving primarily low- to moderate-income neighborhoods in New York City. The bank operates seven branches and has maintained a commitment to community development, evidenced by its "Outstanding" rating from the OCC following its recent Community Reinvestment Act examination. The company is actively managing its liquidity and capital positions in light of ongoing economic challenges, including high inflation and interest rates, which have affected customer demand and overall market conditions.

Looking ahead, Carver Bancorp is closely monitoring its asset quality and liquidity while working to meet regulatory capital requirements. The company is also evaluating the potential impacts of recent legislative changes and economic conditions on its operations. Management remains focused on adjusting its strategies to mitigate risks and enhance profitability in a competitive banking environment.