Carver Bancorp Reports $5.6 Million Net Loss for December Quarter

Carver Bancorp, Inc. reported a net loss of $5.6 million for the three months ended December 31, 2024, a significant decline from a net income of $19,000 in the same period last year. For the nine months ended December 31, 2024, the company recorded a net loss of $10.0 million, compared to a loss of $3.0 million for the prior year. The financial performance was adversely affected by increased interest expenses, non-interest expenses, and provisions for credit losses, alongside a decrease in both interest and non-interest income. Total interest income for the quarter was $6.8 million, down from $8.5 million a year earlier, while total non-interest income fell to $1.0 million from $2.5 million.

In terms of operational metrics, Carver's total assets decreased by 3.9% to $727.5 million as of December 31, 2024, primarily due to declines in cash and cash equivalents, investment securities, and the loan portfolio. Total cash and cash equivalents fell by 15.3% to $50.0 million, while total loans receivable decreased by 1.9% to $610.9 million. The allowance for credit losses increased to $6.1 million, representing 0.99% of total loans, compared to 0.94% at the end of the previous fiscal year. Nonaccrual loans rose to $22.8 million, or 3.1% of total assets, reflecting a deterioration in asset quality.

Strategically, Carver Bancorp has been focusing on enhancing its community engagement and expanding its product offerings. The bank continues to serve low- to moderate-income neighborhoods in New York City, with a commitment to increasing access to financial services. The company has also engaged in private placements, raising approximately $0.2 million in gross proceeds during the current quarter. However, the competitive landscape remains challenging, with significant pressure on deposit growth and loan demand.

Looking ahead, Carver Bancorp's management is closely monitoring economic conditions, particularly the impact of interest rate fluctuations and inflation on its operations. The Federal Reserve's recent rate cuts may provide some relief, but the company remains cautious about potential credit losses and the overall economic environment. Management is committed to maintaining adequate liquidity and capital levels while navigating the complexities of the current market conditions. The bank's capital ratios remain above regulatory requirements, with a Tier 1 leverage capital ratio of 9.03% as of December 31, 2024.